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3 years ago

Both a call and a put currently are traded on stock XYZ; both have strike prices of $42 and maturities of six months.

Business

1 answer:

STatiana [176]3 years ago

7 0

Answer and Explanation:

The solution of profit/loss is shown below:-

Stock Price Profit/Loss

a. $32 -$4.30 After 6 months Stock price is less than strike price

b. $37 -$4.30 After 6 months Stock price is less than strike price

c. $42 -$4.30 After 6 months Stock price is equal than strike price

d. $47 $0.7 ($47 - $42 - $4.30)

e. $52 $5.7 ($52 - $42 - $4.30)

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Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;

zalisa [80]

Answer:

Average fixed cost for 20 units = $7

Explanation:

<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

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3 years ago

Suppose a country without any international trade opens its borders to international trade. after specialization how will its lo

Zanzabum

<span>Opening up to international trade would lead a country to increasing its production and specialization of goods. For example, if a country opens international trade and some factories are making a household appliance, the instructions would need to be in the trade countries languages as well as the native language. The number of household appliances made would need to be increased to meet the growing need.</span>

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4 years ago

Direct labor on the February cost of production report (weighted-average method) revealed a cost per equivalent unit of $0.30. T

aleksandrvk [35]

Answer:

Kindly find the complete questions attached.

a) 325,000 units were transferred to finished goods

direct materials 171,053

direct labor 85,526

factor overhead 68,421

(b) February's equivalent units of production was 445,000 units :

direct materials 234,211

direct labor 117,105

factor overhead 93,684

(d) The cost of direct labor introduced into production in February was $35,132

(e) The factory overhead application rate was 80% of Direct Labor

(f ) Of the total cost (beginning inventory plus additional production cost), allocation to

ending work in process is 120,000 units costing $80,211

(g) Of the total cost (beginning inventory plus additional production cost), transfer to finished goods inventory is $217,237

(h) February's gross profit is $373,363

Please review the attached for detailed workings and presentation of the answers

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3 years ago

The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr

Dmitry_Shevchenko [17]

Answer:

$12,600

Explanation:

Annual Dividend to preferred stock = $1,140,000 × 7%

= $79,800

A schedule of preferred stock dividend in Arrears is as follows :

Dividend Paid Arrears

2016 $79,800 $54,000 $25,800

2017 $79,800 $54,000 $51,600

2018 $79,800 $131,400 0

Dividends of $131,400 has to be paid in 2018 to cover all the arrears.

Principle : Preference dividends (and their arrears if cumulative) are paid first before dividends distribution to common stock holders.

Common Stock Holders receive the remaining amount of dividends of $12,600 ($144,000 - $131,400)

7 0

3 years ago

Sophia, a teacher from Vancouver, Washington, can compare her compensation to peers in the District of Columbia, where pay is mu

KonstantinChe [14]

Answer:

adjust for purchasing power and conditions existing in the local market

Explanation:

the concept of Equity theory describes how resources can be distributed in a fair manner in comparison to others. Sophia has to adjust for what the money she receives can buy her and the prevailing conditions in the market in her own area. This is because in this theory, pay scale is affected by the purchasing power and condition of the market in whatever area that a person lives.

3 0

3 years ago