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aksik [14]
3 years ago
11

You write one MBI July 127 call contract (equaling 100 shares) for a premium of $12. You hold the option until the expiration da

te, when MBI stock sells for $135 per share. You will realize a ______ on the investment.
Business
1 answer:
ser-zykov [4K]3 years ago
3 0

Answer:

The answer is "$400"

Explanation:

The price value of the exercise:

= $127

The expiration date price value is:

= $135

Calculating the profit for Calls buyer:  

= $135-$127  

= $8

The value of 1 call = 100 shares  

calculating the total profit :

=$ 8 × 100  

= $ 800

One alternative purchase price:

= $12

Call option Total purchase price:

=  $12 × 100  

= $1200

The buyer's total loss:

= $1200 - $800

= $400

The Loss for the buyer:  \frac{\text{profit for the seller}}{\text{writer}}

Hence profit for the writer = $400

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Grace period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date.

<h3>What is grace period?</h3>

A life insurance policy won't lapse during the grace period even though a payment is past due after a missed insurance premium is due. Every state in the US requires the grace period, a highly helpful provision, to be included in every life insurance policy. Depending on the rules of each state, the minimum grace period is from 28 to 31 days; however, some businesses may grant extended grace periods.

When the required number of days have gone, the grace period formally ends at the close of business on the day the missing premium payment is due. The grace period in a whole life, universal life, or variable universal life policy would only be applicable if the premium payment was past due and there was no cash value left in the policy. It is unlikely that a policy will enter "grace period status" if a premium payment is missed if cash value is still present as long as it may be utilised to pay the premium or at the very least draw a loan to pay the premium.

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7 0
1 year ago
Complete the sentences to describe two different ways to rearrange slides in PowerPoint.
zimovet [89]

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In normal view, go to the slide deck.

Then, click and drag a slide thumbnail to a new position.

Or, in Slide Sorter View, drag and drop slides to a new location in the presentation.

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Stella is 16 years old she earned 3000 this year at a local ice cream shop, and another 3,500 in cash babysitting her neighbor's
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Answer:

No

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Stella doesn't make over 12,000 dollars.

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If ballard company reported assets of $500 and liabilities of $200, ballard's stockholders' equity equals:_____.
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If Ballard company reported assets of $500 and liabilities of $200, Ballard's stockholders' equity equals <u>$300</u>.

Liability is a time period in accounting that is used to explain any type of monetary duty that a commercial enterprise has to pay at the cease of an accounting period to someone or a commercial enterprise. Liabilities are settled with the aid of shifting economic blessings which include cash, items, or services.

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