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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.

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Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government expenditures are $2 billio
masha68 [24]

Answer:

exports are $15 billion, and imports are $10.5 billion

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption + Investment spending + Government Spending + Net Export

14 billion = 4.5 billion + $3 billion + $2 billion + Net Export

Net Export = $4.5 billion

Net Export = export - import

Net Export is positive so it indicates that exports is greater than imports.

Going through the options, it is only option d that is equal to 4.5 and the export is greater than the import.

I hope my answer helps you

7 0
3 years ago
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca
jolli1 [7]

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

6 0
3 years ago
In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If ban
kipiarov [429]

Answer:

$50,000,000; $55,000,000

Explanation:

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10%, deposits in Macroland equal <u>$50,000,000 </u> and the money supply equals <u>$55,000,000</u>

3 0
3 years ago
Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no
Mila [183]

Answer:

payback 2.5 years

Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

investment: 5,000

increase in cash-flow 2,000

Investment/cash flow = 5,000 / 2,000 = 2.5 years

The depreciation are not considered as this are not cash flow.

3 0
3 years ago
Corporations in other countries are often called:
inn [45]

Answer:

The answer is public limited companies

Explanation:

Public limited company (PLC) is a terminology used in commonwealth nations to refer to limited liability company whose shares are available to the general public. In the US and other countries, a PLC is referred to as corporation. PLC's shares can be acquired by any person through trading in the stock market or an initial public offer.

A PLC or corporation can be listed or not listed on a stock exchange.  Under law, a PLC is supposed to publish its true financial position so that shareholders can know the worth of the shares they hold.

5 0
3 years ago
Read 2 more answers
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