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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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After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $20,000—with no ($0) down p
PolarNik [594]

Answer:

Her Yearly Repayment will be approximately $5771

Explanation:

For an Amortized Loan, to calculate the payment amount per period, we use the formula:

A=[P(1+r)ⁿ]/[(1+r)ⁿ-1]

where A=Payment per period

P= Initial Principal/Loan Amount

r= Interest rate per period

n= number of payments period

From the information provided,

P=$20000

n=4 years

r=6%=0.06

Therefore Yearly Repayment Amount A=[Pr(1+r)ⁿ]/[(1+r)ⁿ-1]

=[20000X0.06(1+0.06)⁴]/[(1+0.06)⁴-1]

=[1200(1.06)⁴]/[(1.06)⁴-1]

=[1200X1.2625]/[1.2625-1]

=1515/0.2625

=$5771.43

3 0
4 years ago
Which of the following statements about depreciation is correct?
Oliga [24]

Answer:

The correct answer is letter "C": To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

Explanation:

Depreciation indicates how much value was used up for an asset. It also tries to match an asset's cost to the profit this helps the business collect. Depreciation calculations used as income tax deduction offer companies and annual allowance for the use and deterioration of tangible assets. Besides, depreciation must be added to the company's accounting profits to determine the firm's total inflow.

4 0
3 years ago
In placing a tire order with Goodyear, River City Industrial Supply finds that the truck tires it is ordering have increased $37
andre [41]

Answer:

Inelastic

Explanation:

Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.

8 0
3 years ago
Read 2 more answers
A second mover: a.is typically ineffective in its response to a first mover. b.attempts to provide a product with greater custom
Viktor [21]

Answer:

b. attempts to provide a product with greater customer value than the first mover.

Explanation:

In marketing, it is believed that the first mover gains an edge over the followers. A first mover is the initial entrant and provider of products and services catering to a marketing segment.

A second mover refers to the immediate next of the first mover. The advantage second mover has over the first mover being, it can analyze the response the first mover generated and effectively gauge what went right and what went wrong for the first mover.

This way, the second mover can provide improved products than the first mover by not committing same errors as the first mover.

5 0
3 years ago
Which of the following correctly describes globalization
kondor19780726 [428]

what is your question ??

I think u have missed some parts here in the question ..

5 0
2 years ago
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