Answer:
diagonal spread
Explanation:
Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.
In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.
The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.
The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.
The option dialogue spread is not a valid option too.
The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.
So the most suitable option is diagonal spread which is an example of Combination.
Answer:
a. they are separate performance obligations
normal price of annual membership = $1,140
one yer enrollment in yoga = $600 x (30% - 10%) = $120 x 50% = $60
total $1,200
% of price allocated to:
annual membership = ($1,140 / $1,200) x $1,100 = $1,045
discount voucher = $1,100 - $1,045 = $55
b. the journal entry should be
Dr Cash 1,100
Cr Unearned revenue, membership fees 1,045
Cr Unearned revenue, discount voucher 55
Answer:
Current share price is $59.88
Explanation:
First calculate present value of all four years dividend
Year Calculations PV
1. 14 x (1.10)^-1 $12.73
2. 10 x (1.10)^-2 $8.26
3. 9 x (1.10)^-3 $6.76
4. 4.5 x (1.10)^-4 $3.07
As the Dividend in fifth year will grow for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
Dividend in the fifth year = $4.5 x ( 1 + 4% ) = $4.68
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Dividend / Required Rate of return
Value of Stock = Dividend / Required Rate of return
Value of Stock = $4.68 / 10%
Value of Stock = $46.8
This the value in fifth year calculate it present value
Today's value = $46.8 x ( 1 + 10% )^-5 = $29.06
Now add the all present values
Total Present value = $12.73 + $8.26 + $6.76 + $3.07 + $29.06 = $59.88
According to the graph A + B + C + D + E + F + G it represent the amount of consumer surplus domestic consumers will enjoy after the tariff has been imposed.
<h3>What concept will be applied when the domestic nation acts as a price taker, and its consumption and production have no impact on the global price?</h3>
Due to its tiny size in comparison to global markets, the domestic market is a price taker, and neither its production nor consumption affects global prices. Therefore, the nation uses the international price as the domestic price for any good, service, or resource.
<h3>
What distinguishes a tariff imposed by a big country from a small country's tariff?</h3>
Due to its size, the huge nation's tariff not only lowers the amount of the thing that is sought, but it also could lower the product's global price.
To know more about domestic consumers visit :
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Answer:
$500
Explanation:
Data provided in the question
Salary for the first year = $50,000
CPI increase during the year = 4%
Overstated inflation = 1% i.e 5%
The computation of the increased in salary is shown below:
= Salary of the first year × inflation rate - salary of the first year × CPI increase during the year
= $50,000 × 5% - $50,000 × 4%
= $2,500 - $2,000
= $500
