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mart [117]
3 years ago
11

"DEF Corporation, after many profitable years, declares a one-time special cash dividend of $5.00 per share. After the announcem

ent, the stock is trading at $50 per share. Your customer holds 1 DEF Jan 55 Call. As of the ex date, the customer will have:"
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer: B. 1 DEF Jan 50 Call

Explanation:

The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.

When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.

In this case it will do so by subtracting the dividend from the call;

= 55 - 5

= $50

The customer will then have 1 DEF Jan 50 Call .

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What does Mentor do for Odysseus in The Odyssey?
djverab [1.8K]
The Odyssey was written by Homer. It is one of the two major Greek epic poems that Homer wrote. This poem is about the Greek hero, Odysseus and his journey home after the city of Troy fell at the end of the ten-year Trojan War. When Odysseus leaves to fight in the Trojan War, he leaves Odysseus's son's teacher and  overseer, <span>Mentor in charge of his whole household. Therefore Mentor looks after Odysseus's son during Odysseus's absence.</span>
6 0
3 years ago
Read 2 more answers
Marnie makes regular annual payments of $5,000 to her Individual Retirement Account (IRA). If the amount of interest she earns i
musickatia [10]

The future value of the account after 35 years is $511,914. 48.

The payment Marnie is making is known as an ordinary annuity. An ordinary annuity is when a fixed payment is made at the end of a period at regular intervals for a period of time.

Future value = annual payments x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Annuity factor = [(1.056)^35 - 1] / 0.056 = 102.382897

Future value = $5000 x  102.382897 = $511,914. 48

To learn more about future value, please check: brainly.com/question/18760477

4 0
2 years ago
. Licensing occurs when: a. A licensee allows a licensor to use its intellectual property for a fee. b. A professional league pa
DedPeter [7]

Answer:

c. The owner of an intellectual property grants its use to a league in exchange for a fee.

Explanation:

Licensing occurs when: owner of an intellectual property grants its use to a league in exchange for a fee.

8 0
4 years ago
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A Parent Company owns 100% of its Subsidiary. During 2018, the Parent company reports net income (by itself, without any investm
marusya05 [52]

Answer:

$2,593,000

Explanation:

The computation of consolidated net income is shown below:-

cancellation of excess of Interest expenses over Income = Interest expense - Interest income

= $80,000 - $37,000

= $43,000

Consolidated net income = Parent company Income + Subsidiary Income + cancellation of excess of Interest expenses over Income

= $1,850,000 + $700,000 + $43,000

= $2,593,000

So, for computing the consolidated net income we simply applied the above formula.

6 0
3 years ago
A rectangular floor measures $a$ feet by $b$ feet, where $a$ and $b$ are positive integers with $b &gt; a$. An artist paints a r
DENIUS [597]

The number of possibilities that are there for the ordered pair is 2.

<h3>Calculation and Parameters
</h3>

Because the unpainted part of the floor covers 1/2 of the area, then the painted rectangle covers 1/2 of the area as well.

Given that the border width is 1 foot, the dimensions of the rectangle are a-2 by b-2.

Making an equation:

ab= 2((a-2)(b-2))

ab= 2ab-4a-4b+8

ab-4a-4b+8=0

If we apply Simon's Favorite Factoring Trick,

ab-4a-4b+16= 8

(a-4)(b-4)= 8

Since b > a, then we have the possibilities

(a-4) = 1 and (b-4) = 8, or (a-4) = 2 and (b-4) = 4.

(5, 12) or (6,8) which gives us 2 possibilities.

Read more about possibilities here:

brainly.com/question/25870256

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8 0
2 years ago
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