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tino4ka555 [31]
3 years ago
15

An investor purchases a stock for $39 and a put for $0.55 with a strike price of $32. The investor sells a call for $0.55 with a

strike price of $42. What is the maximum profit and loss for this position? (Loss amount should be indicated by a minus sign.)
Business
1 answer:
Archy [21]3 years ago
3 0

Answer:

The maximum profit and loss for this position is $3 and -$7 respectively

Explanation:

The computations are shown below:

For maximum profit:

= Strike price at the sale - stock price + put price - call price

= $42 - $39 + $0.55 - $0.55

= $3

For maximum loss:

= Strike price at purchase - stock price + put price - call price

= $32 - $39 + $0.55 - $0.55

= -$7

Simply we take the difference between the strike price ,and the stock price and after that the put and call price are adjusted

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the market value of the equity of Ginger, Inc., is $710,000. The balance sheet shows $45,600 in cash and $227,800 in debt, while
KengaRu [80]

Answer:

3.34 times

Explanation:

Ginger incorporation has a market valu of equity of $710,000

The debt is $227,800

Cash is $45,600

EBIT is $102,800

The first step is to find the enterprise value

= market capitalization + debt -cash

= $710,000 +$227,800 - $45,600

= $937,800-$45,600

= $892,200

The EBITDA can be calculated as follows

= EBIT + depreciation and amortization

= $102,800 + $164,600

= $267,400

Therefore the enterprise value-EBITDA can be calculated as follows

= 892,200/267,400

= 3.34 times

7 0
3 years ago
An online retailer uses complex data-mining software to evaluate the preferences and buying habits of its customers and makes de
boyakko [2]

Answer:

TRUE - Analytics

Explanation:

Analytics is the systematic process of finding, interpreting and communicating meaningful patterns found in data. Ot involves the examination of data using mathematical methods.

The online retailer used analytics in order to understand the consumers behaviors and then to be able to make decisions from result gotten rather than the use of "gut" feeling or intuition which isn't backed by data or facts.

The use of analytics in business making decisions generally improves profits margins, efficiency and risk management.

7 0
3 years ago
Which combination of factors would result in the lowest monthly mortgage payment?
Anit [1.1K]
The choices can be found elsewhere and as follows:

<span>A.) Big down payment,a longer term loan, and a low interest rate
B.) <span>Big down payment, a shorter term loan, and high interest rate
C.) </span><span>Small down payment, a shorter term loan, and high interest rate
D.) </span><span>Small down payment, a shorter term loan, and small interest rate

I think the correct answer is option A. It would be </span></span>Big down payment,a longer term loan, and a low interest rate that would result <span> in the lowest monthly mortgage payment. Hope this answers the question.</span>
8 0
3 years ago
If the owner of business withdrawals money for personal use but in performing a bank reconciliation determines that she had negl
s2008m [1.1K]

Debit withdrawals; credit cash is the correct answer.

<h3>What are drawings in accounting?</h3>
  • A drawing bank is not in and of itself a bank account.
  • Drawing in accounts are the records kept by a company owner or auditor that show how much cash has been taken by business owners.
  • These are transfers made for personal use rather than for the profit of the business, yet they are governed in a way that employee earnings are not.
  • Because these transfers must be offset against the owner's equity, accurate records must be maintained.
  • A separate drawings directly deals with it simpler to keep track of these actions and balance the books at the conclusion of every fiscal year when you need to know how to end your drawings account.

learn more about drawing account refer:

brainly.com/question/28137060

#SPJ4

4 0
1 year ago
When the economy is hit with a supply shock, such as oil prices rising from $25 a barrel to $75 a barrel, why is this doubly dis
Pachacha [2.7K]

When the economy is hit with a supply shock, especially if it is something as important as the oil, and its price doubles or triples, than the whole economy will suffer.

The reason for that is that the oil (since we took it as example) is not influencing only the people and the companies that use as fuel, but it affects the prices of pretty much all products. Such an increase in the price will result in much bigger expenditure by the production facilities. The transportation companies will also have much increased expenses. And that will result in a much increased price in most of the products. That will hit the people very hard on their pockets, as they will come in a situation where their wages are the same as they were, but the prices of everything went significantly up in no time.

8 0
3 years ago
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