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maxonik [38]
3 years ago
8

ABC Corporation, after many profitable years, declares a one-time special cash dividend of $10.00 per share. After the announcem

ent, the stock is trading at $100 per share. Your customer holds 1 ABC Jan 110 Call. As of the ex date, the customer will have:
Business
1 answer:
Crank3 years ago
4 0

Answer:

1 ABC Jan 100 Call

Explanation:

Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.

For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.

The new strike price will be

= 110 - 10 cash dividend

= 100. It also means that the number of shares covered by the contract does not change.

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Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money? A. 6 percent inter
Zepler [3.9K]

Answer:

D. 8 percent interest for 9 years

Explanation:

We would use the formula future value formula below to determine which of the investment options would double her money:

FV=PV*(1+r)^n

PV is the amount invested which is $1000

r is the interest rate expected to be earned while n is the number of years First option:

FV=$1000*(1+6%)^3

FV=$1,191.02  

Second option:

FV=$1000*(1+12%)^5

FV=$1,762.34  

Third option:

FV=$1000*(1+7%)^9

FV=$ 1,838.46  

Fourth option:

FV=$1000*(1+8%)^9

FV=$2000

Last option:

FV=$1000*(1+6%)^10

FV=$ 1,790.85  

8 0
3 years ago
Which of the following fiscal policy action would cause the economy to contract?
maksim [4K]
<span>This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too. </span>
4 0
2 years ago
______ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior
dimulka [17.4K]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

The businesses use market segmentation to separate each market from another to study their demand closely. It helps them in catering to them according to their characteristics. They are able to treat every market according to its unique characteristics and generate more profit while doing that.

7 0
2 years ago
Which of the following is NOT a condition for a firm to engage in price discrimination? Multiple Choice The consumers are sincer
Radda [10]

Answer:

The correct answer is The consumers are sincere in revealing their true natures.

Explanation:

This is not a condition because the company does not take into account factors of this type to determine price changes, to consider the setting of new prices for products. In order to determine these changes, you must establish real data on the behavior of demand and determine if the goods produced have the characteristic of being storable to be traded over a longer period of time.

6 0
3 years ago
A+b-c =170 B+c-A= 130 <br>solve​
balu736 [363]

The correct answer is A = 110, B= 40, C=20..

<u>Explanation</u>

If A+B-C= 170 and B+C-A=130 ,  

=C+A = 130

or, C= 130- A

Again, A+B-C =170

or, A+B =170+C

A+B = 170+130-A ( c=130-A)

A+B = 300-A

2A+B = 300

A+B= 300/2

A+B = 150

A+B-C= 170

A+B = 170+C

150 = 170 +C ( A+B = 150)

or, C = 20..............................(1.)

A+C =130

or,A+ 20= 130 ( A=110).....................(2)

A+B = 150

110+B= 150

B = 150-110

B= 40..........................................(3)

Therefore, A = 110, B= 40, C=20..

8 0
3 years ago
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