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murzikaleks [220]
3 years ago
5

You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exe

rcised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is:
Business
1 answer:
Lostsunrise [7]3 years ago
5 0

Answer:

The answer is =-$0.02or ($0.02)

Explanation:

Exercise price or strike price is the price at which the owner of an option can buy or sell the underlying asset.

Spot price is the immediate or prevailing price of an underlying asset.

Spot rate on the expiration date is $1.65

exercise price of $1.64

Premium of $.03 per unit

Net profit per unit is:

$1.65 - $1.64 - $0.03

=-$0.02or ($0.02)

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ou want to buy a new sports car from Muscle Motors for $76,000. The contract is in the form of a 60-month annuity due at an APR
Len [333]

Answer:

$1510.28

Explanation:

The monthly on the purchase of new sports car can be  computed using the pmt excel function as shown below:

=pmt(rate,nper,-pv,fv)

rate is APR of 7.15% expressed in monthly terms i.e 7.15%/12

nper is the number of months that payments would last i.e 60 months

pv is the cost of the new sports car i.e $76000

fv is the balance owed after the 60th payment i.e $0

=pmt(7.15%/12,60,-76000,0)=$1510.28

8 0
3 years ago
Match the terms with the appropriate definition.
Bond [772]
1.) data
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8 0
3 years ago
The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current outp
mafiozo [28]

Answer:

c. decrease monthly output to 200 board feet.

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If the firm wants to maximize profit it should decrease monthly output to 200 board feet demand by doing so , vital rate  will ultimately increase the cost of the product and shift them to the profit. The correct answer is C.

7 0
3 years ago
Suppose charles owns a​ lawn-mowing company. assume that without​ workers, no yards are mowed. when he hires one​ worker, he is
Marysya12 [62]
<span>Marginal pruduct of first worker is 3 yards. Marginal product of second worker is 4 yards. Marginal product of third worker is 5 yards.The marginal product of labor potentially increases due to specialization.</span>
4 0
3 years ago
Gray Company, a closely held C corporation, incurs a $50,000 loss on a passive activity during the year. The company has active
-Dominant- [34]

Answer:

B) False: since it is still a closely held C corporation, it cannot reduce its ordinary income through passive losses. If it hadn't been a closely held C corporation then it could have made the deductions.

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Passive losses are losses resulting from financial activities, i.e. investments in other corporations where the investor doesn't participate in.

Passive losses cannot offset ordinary income, they must be matched against passive gains only. If passive losses exceed passive gains, they can be carried forward without limitation.

The only exception applies to C corporations that are not;

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Qualifying C corporations can actually deduct passive losses from certain ordinary income.  

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6 0
4 years ago
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