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Tasya [4]
3 years ago
14

You sold five put contracts on CTB stock at an option price per share of $1.90. The options have an exercise price of $45 per sh

are. The options were exercised today when the market price was $39 a share. What is your net profit or loss on this investment
Business
1 answer:
IRINA_888 [86]3 years ago
6 0

Answer:

-$2,050

Explanation:

Given that,

Number of options sold = 5

Option price per share = $1.90

Exercise price = $45 per share

Market price = $39 per share

As the exercise price is greater than the stock market price, so the purchaser of the put option will exercise the option,

Lot size = 100 shares

Therefore, the loss on this investment is calculated as follows:

= -{[(Exercise price - Market price) × Number of options sold] - (Option price × Number of options sold)} × Lot size

= -{[($45 - $39) × 5] - ($1.90 × 5)} × 100

= -$2,050

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Pretesting is a very useful method for determining
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Nuan, a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the
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Answer: Technological needs

Explanation: Adaptation means the the process of adjusting to a different environment or different people. In the question Nuan has to adjust his product to technologically suit it new market in Zimbabwe, before he can send them down there.

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3 years ago
Classify the following items as Direct materials, Selling and administrative expense, Factory overhead, or Direct labor. a. Rent
xxTIMURxx [149]

Answer:  

  1. a. <u>Rent expense on factory building</u> = Factory overhead, because it is the factory building.
  2. <u> b. Sales supplies used</u> = Selling and administrative expense.
  3. <u>c. Factory supplies used</u> = Factory overhead.
  4. <u>d. Indirect materials used</u> = Factory overhead.
  5. <u>e. Wages of assembly line personnel</u> = Direct Labor.
  6. <u>f. Cost of primary material used to make product</u> = Direct Materials.
  7. <u>g. Depreciation on office equipment</u> = Selling and administrative expense.
  8. <u>h. Rent on office facilities</u> = Selling and administrative expense.
  9. <u>i. Insurance expired on factory equipment</u> = Factory overhead.
  10. <u> j. Utilities incurred in the office</u> = Selling and administrative expense.
  11. <u>Advertising expense</u> = Selling and administrative expense.

4 0
3 years ago
Differences in personalities among individuals?
gulaghasi [49]

Answer:

B) none of these

hope this helps you

8 0
2 years ago
A company estimates that it can sell 5,000 headphone each week if it prices each set of headphones at $20. However, its weekly n
nadezda [96]

Answer:

At what price is revenue maximum?

  • $13 and $12 per unit (maximum revenue $156,000)

What is the maximum revenue and how many sets of headphones should the company expect to sell?

  • $156,000

Write your conclusions in a sentence.

  • When the price is higher than $12 per unit, demand is elastic, which means any decrease in price will result in a larger proportional increase in quantity demanded. This in turn increases total revenue. Below $12 per unit, demand is inelastic, which means that a decrease in price will result in a smaller increase in quantity demanded.

Explanation:

price            quantity demanded       total revenue

$20                            5000               $100000

$19                            6000               $114000

$18                      7000                 $126000

$17                      8000                 $136000

$16                      9000               $144000

$15                      10000               $150000

$14                      11000               $154000

<u>$13                      12000               $156000 </u>

<u>$12                      13000               $156000 </u>

$11                             14000               $154000

$10                      15000               $150000

$9                      16000               $144000

$8                      17000               $136000

$7                      18000               $126000

$6                      19000               $114000

$5                      20000       $100000

$4                       21000        $84000

3                       22000        $66000

2                       23000        $46000

1                       24000        $24000

4 0
3 years ago
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