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
13

A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,

2019. On March 15, 2019, ABC is put to the customer. Which of the following statements about this transaction is correct?
a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.
b. He has an acquisition cost of $4,800 and a date of acquisition of February 22, 2007.
c. He has a $200 short-term gain on the sale of his put. His cost of acquisition is $5,000 and the date of acquisition is February 22, 2007.
d. He has an acquisition cost of $5,000 and a date of acquisition of March 16, 2007.
Business
1 answer:
Deffense [45]3 years ago
8 0

Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.

Explanation:

A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

Options contracts come in 100s so;

Acquisition cost = (50 - 2) * 100

= 48 * 100

= $4,800.

The date of acquisition is the day the put was exercised.

You might be interested in
SungSam, Inc. is designing a new digital camcorder that is projected to have the following per-unit costs to manufacture:
Natali5045456 [20]
The answer is B) what is the overall cost to produce a batch of 10,000 camcorders
7 0
3 years ago
Initially, suppose Bellissima uses 1 million hours of labor to produce rye and 3 million hours to produce jeans, while Dolorium
vodka [1.7K]

Answer:

Bellisima's opportunity cost:  

Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans

Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye

Dolorium's opportunity cost:  

Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans

Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye

Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.

If both countries specialize:

Bellisima will produce 48 million bushels of rye.

Dolorium will produce 128 million pairs of jeans.

Total production of rye has increased by 12 million bushels.

Total production of jeans has increased by 24 million pairs.

4 0
2 years ago
Labor productivity on the Cleveland Tools Inc. assembly line was 33 units per hour in 2019. In 2020, labor productivity was 35 u
elena-14-01-66 [18.8K]

Answer:

Productivity Growth = 6.1%

Explanation:

Productivity Growth = Current Productivity - Previous Productivity/ Previous Productivity

Productivity Growth = 35-33/33=2/33= 0.0606 or 0.061*100= 6.1%

Productivity Ratio =  Output/ Input

Labor Productivity=  No of Units/ No of Employees

A preferable approach to productivity measurement is to record multiple physical measures that capture the most important determinants of a company's productivity.

7 0
3 years ago
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals o
SOVA2 [1]

Answer:

This indicates that

d.the company has a net loss of $9,575 for the period.

Explanation:

a) Data and Calculations:

Total debits of the balance sheet (assets) = $28,480

Total credits of the balance sheet (liabilities + equity) = $38,055

Difference (net loss) = $9,575 ($38,055 - $28,480)

b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal.  This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.

5 0
3 years ago
List at least two tips for using credit wisely
PIT_PIT [208]
Pay your balance each month and keep a limit
5 0
2 years ago
Read 2 more answers
Other questions:
  • Institutions specialize in raising money for governments and corporations by issuing securities.
    13·2 answers
  • Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these
    9·1 answer
  • Identify the following as cash inflows or outflows to a privately-owned water company: well drilling, maintenance, water sales,
    13·1 answer
  • Which best describes a way people can use personal loans? to buy a house to buy a bicycle to pay for college Which best describe
    14·2 answers
  • Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 2222 years or as
    11·1 answer
  • On December​ 31, 2018 the balance in Energy Exploration​ Company's Unearned Revenue account was a credit of $ 10 comma 000. In​
    11·1 answer
  • Your firm uses half debt and half equity. The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%
    10·1 answer
  • Fiedler's contingency theory of leadership suggests that leaders should be placed in leadership situations that best fit with th
    10·1 answer
  • Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between th
    12·1 answer
  • Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended Decembe
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!