1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vanyuwa [196]
3 years ago
11

Michael Jordan purchases (long) 10 shares of XYZ stock for 23.00 per share. Six months from now he will sell all 10 shares. The

continuously compounded risk free rate is 5%.
A. What is the breakeven stock price at the end of six months?
B. What is his profit if the stock price at the end of six months is 23.80 per share?
Business
1 answer:
melamori03 [73]3 years ago
3 0

Answer:

a) Breakeven price = Purchase price + Interest amount that would have been earned on the invested amount

Breakeven price = 23 + [23*e^(0.05*1/2) - 23]

Breakeven price = 23 + 0.5822477721

Breakeven price = $23.5822477721

b) Profit = Selling price - Breakeven price

Profit = $23.80 - $23.5822477721

Profit = $0.2177522279 per share

You might be interested in
Choose a real or made up example of a company, and describe at least three fixed costs the company has.
bonufazy [111]
(any company) Payroll for employed workers, Property costs, and taxes.
6 0
3 years ago
An increase in the price of poultry would lead to__________
elixir [45]

Answer:

c.a decrease in quantity demanded of poultry and an increase in the demand for fish.

Explanation:

The law of demand states that the higher the price , the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Following from the law of demand, if the price of poultry increases, the quantity of poultry demanded would fall.

Because fish and poultry are subsituites goods, if the price of poultry increases, the demand for fish would increase.

I hope my answer helps you.

6 0
3 years ago
Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year: Direct m
Zanzabum

Answer:

$16,100

Explanation:

Add the total manufacturing costs for the year to determine the cost of goods manufactured during the current year. Also remember to account for change in work in process inventory.

3 0
3 years ago
elias is creating an agenda for his team's upcoming sales meeting. what should he include in the agenda?
andrew11 [14]

Elias is creating an agenda for his team's upcoming sales meeting, expected outcomes include in the agenda

The process of leading to the sale of goods or services is referred to as sales. Businesses have segmented sales organizations made up of various teams. Additionally, these sales teams are frequently chosen based on the market they are targeting, the good or service they are selling, and the target client. A meeting's agenda is a list of the topics that will be discussed, starting with the call to order and ending with the adjournment. It typically contains one or more specific items of business that need to be handled. Specific times for one or more activities may be included, but they are not required to be. Agendas typically include: Informational items: updating the group on relevant information.

Learn more about sales here :
brainly.com/question/15375944

#SPJ4

7 0
1 year ago
The graphs show the market for bags of potato chips, which is currently at an equilibrium price of $ 1.33 per bag and an equilib
Neporo4naja [7]

This question is incomplete.

The complete question, answer & explanation for this question is given in the attachment below.

4 0
3 years ago
Other questions:
  • Employees at Clearwater Plumbing Supply, Inc. asked the management to hold an election to determine which radio station would be
    6·2 answers
  • Sixth fourth bank has an issue of preferred stock with a $6.10 stated dividend that just sold for $123 per share. what is the ba
    12·1 answer
  • What is a saturated market like for sellers
    7·1 answer
  • If former President Barack Obama were to come on TV and say, Take cover for the next 4 months cause of the Virus. All jobs and o
    13·1 answer
  • The concept by which pay is distributed based on work produced rather than hours worked was called _______________.
    7·1 answer
  • What products do you think will increase in demand because of the 2020 election?
    6·1 answer
  • You run a coffee shop where demand is constant week to week. You use 10 bags of roasted coffee each week. Currently, you order w
    6·1 answer
  • Not yet answered Marked out of 1.00 Flag question The accounting records of Slattery Corporation, a small manufacturing company,
    14·1 answer
  • The marketing manager of TelCo., Inc. has determined that a market exists for a telephone with a sales price of $15 per unit. Th
    10·1 answer
  • In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classifie
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!