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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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$16,281$⁢16,281 is invested, part at 15%15% and the rest at 13%13%. If the interest earned from the amount invested at 15%15% ex
aleksandr82 [10.1K]

Answer:

Ans. The amount invested at 13% was $1,595.97 and $14,685.03 were invested at 15%

Explanation:

Hi, you can solve this by using 2 equations, so let X be the portion of the money invested at 15% and Y be the amount invested at 13%. So the equation for the whole amount is:

X+Y=16,281

Now, the problem says that the money that you earn by investing at 15% exceeds the money received as interest in your investment of 13% by $1,995.27, this leads us to the second equation.

0.15X=0.13Y+1995.27

Now, to make it a little more friendly, we just have to go ahead and divide everything by 0.15, so we get.

X=0.8667Y+13,301.8

Now, in our first equation, we substitute X fo 0.8867(Y)+13,301.8 and we will see this.

0.8667Y+13,301.8+Y=16,281

Now, we solve for Y

1.8667Y=16,281-13,301.8

Y=\frac{2,979.2}{1.8667} =1,595.97

So the money invested at 13% was $1,595.97 therefore, the money invested at 15% was $16,281 - $1,595.97 = $14,685.03

And we can check this results like this. The money invested at 15% will return an amount of:

14,685.03*0.15=2,202.75

And the money invested at 13% will return

1,595.97*0.13=207.48

Substracting, we would found that the difference is:

2,202.75-207.48=1,995.27

Best of luck.

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Suppose the marginal propensity to consume is equal to 0.75. If the government lowers tax rates and tax revenue falls by $100 mi
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Answer:

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Given that:

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Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.

Consuption spending will initially increase by $75 million, as shown below:

= MPC × tax revenue fall

= 0.75 × $100,000,000 = $75,000,000

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20.94% is the expected rate of return

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