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
Norton loans a customer $500 on January 1. On July 1 of the same year, the customer must repay Norton $525. The amount of intere
s2008m [1.1K]

Norton loans a customer $500 on January 1. On July 1 of the same year, the customer must repay Norton $525. The amount of interest earned by Norton is <u>twenty-five</u> $.

Whilst you take out a loan–whether or not it is a scholar loan, private loan, vehicle loan, or mortgage–creditors earn money by way of charging you interest. interest is the price you pay for borrowing money from a lender. that means you won't just pay returned the money you borrowed.

APR is the once-a-year fee of a mortgage to a borrower — together with expenses. Like a hobby fee, the APR is expressed as a percent. unlike an interest charge, however, it consists of other expenses or prices which include loan coverage, most ultimate charges, cut price factors, and mortgage origination costs.

for example, the hobby on a $30,000, 36-month mortgage at 6% is $2,856. The equal loan ($30,000 at 6%) paid again over seventy-two months could fee $five,797 in the hobby.

Learn more about loans here: brainly.com/question/26011426

#SPJ4

6 0
1 year ago
Knowing that a third party may use the information that Ray is providing, does Ray owe a duty of confidentiality to Onyx?
artcher [175]

Answer:

<em>B. Yes, although it may be breached in most states if there is a court order to do so.</em>

Explanation:

<em>Duty of confidentiality is a provision that has been put in place in most states, to enable clients open up freely if they need help. This allows professionals to take whatever actions necessary to carry out full service delivery when helping the client. </em>Some of these details include health status, a client-lawyer case story, a social media's access to users' personal details, etc. The law prohibits professionals from disclosing information made available to them by the client to a third party. This duty is held by many professional bodies like the medical body, legal body, among others. <em>This duty can be broken by law in situations where the client sues the professional, or when there is a legal court order to do so</em>.

3 0
2 years ago
You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig
lubasha [3.4K]

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

5 0
3 years ago
Which of the following is true about duration and modified duration?
My name is Ann [436]

Answer:

The truth about Macaulay Duration and Modified Duration is:

d. All are true.

Explanation:

Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.

On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.

4 0
3 years ago
Describe the nature and types of businesses. ​
const2013 [10]

Answer:

The nature of business is a statement about a company's offering to its clients, its industry, legal structure, or any other distinctive qualities of the business. For example, if you say a company in the “private sector”, you evaluate the nature of the company based on its nature to earn profits.

Explanation:

Hope This Helps,

If The question is Correct May i have Brainliest

Thank You

8 0
2 years ago
Other questions:
  • If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is un
    9·1 answer
  • _____ lets programmers create Web pages that will update asynchronously while the rest of the Web page continues to be displayed
    11·1 answer
  • Jermaine, a member of a student organization, supports the move to increase the membership fees for their organization in order
    14·1 answer
  • Luis had self-employment income of $9,732 reported in box 7 of Form 1099-Misc and has receipts for tools and supplies of $2,603.
    12·1 answer
  • Which of the following is true of customers who are regarded as ""promoters"" based on the net promoter score associated with th
    14·1 answer
  • The following information pertains to Julia &amp; Company: March 1 Beginning inventory = 33 units @ $5.70 March 3 Purchased 14 u
    10·1 answer
  • Successful firms of today would ?
    10·1 answer
  • How do you differentiate writing from speaking​
    7·2 answers
  • For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal
    13·1 answer
  • Say that transaction costs are high because there are many parties to a property use dispute. If the externality is caused by, s
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!