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Mandarinka [93]
3 years ago
13

b. D Corp stock currently trades at $50. August call options on the stock with a strike price of $55 are priced at $5.75. Octobe

r call options with a strike price of $55 are priced at $6.25. Calculate the value of the time premium between the August and October options.
Business
1 answer:
coldgirl [10]3 years ago
3 0

Answer:

The value of the time premium between the August and October options is $0.50

Explanation:

A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.

To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value

Time premium = 6.25 - 5.75 = $0.50

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Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps
allsm [11]

Answer:

True

Explanation:

Risk management is the practice of identification of number of risks that the organization faces and then assessing each of them. After assessment of the risks, the organization try to find ways to eliminate or reduce each single risk so that the business operations do not get affected. The precautionary measures can be simply avoid the risk, face the risk, share the risk (Insurance) and reduce the risk to acceptable level.

8 0
3 years ago
The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $3
MissTica

Answer:

Cost principle.

Explanation:

Cost or historical cost principle.

The assets, liabilities and equity must enter the accounting at their original purchase cost rather than current market value. This bulding, which is an asset was purchase for 500,000. Therefore, his cost is 500,000. It will be recorded at 500,000.

And will not increase for changes in the market value. Only at the moment of selling or disposal of the assets the accounting will recognzie a gain or loss.

5 0
3 years ago
A. drake wins $100,000 and peter wins $75,000.
emmasim [6.3K]
How about Drake just beats Peter by becoming a world-renown rapper and earning a net worth of +$60 million? 

But seriously, what's the question?
3 0
2 years ago
The FDA banning a specific product that a company sells is an example of:_________
mario62 [17]

Answer: unsystematic risk that can be diversified away

Explanation:

The FDA banning a specific product that a company sells is an example of unsystematic risk that can be diversified away.

The above scenario is simply a company related risk and therefore an unsystematic risk but it can actually be diversified away by proper utilization and allocation of resources. Therefore, the correct option is E

6 0
3 years ago
If you get an email from your bank on its official stationery that asks for your account number, what should you do
andreyandreev [35.5K]

When an email is received in one's bank name and asks for account number, it is more likely a fraud and should be reported immediately.

It is very uncommon and rare for bank to contact an account-owner and when they does, it is usually for complicated situations, complimentary messages, product offers etc

This type of message received (<em>in question</em>) are usually from a malicious party disguising as you bank and it is referred to as email phishing.

In conclusion, when an email is received in one's bank name and asks for account number, the intent is more likely a fraud and should be reported immediately to necessary department.

Read more here

<em>brainly.com/question/1627286</em>

6 0
2 years ago
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