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Greeley [361]
2 years ago
5

What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 p

oints) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling price for the bonds is $80,000.
Business
1 answer:
Klio2033 [76]2 years ago
7 0

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1,500

Break even point = Strike price - Premium

Break even point = $90,000 - $150

Break even point = $88500

Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500

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PLEASE HELP FAST!!! What is the MOST likely reason that lottery winners often end up with serious financial problems?
zhuklara [117]

Answer:

taxes and no money management

Explanation:

some comes out of taxes and you do not know what to do with so much money

5 0
2 years ago
Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, Apri
Oduvanchick [21]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Barrington Bears has developed the following sales forecasts for January 500 units.

BB has 80 bears on hand on Dec. 31. The normal ending inventory policy is to hold 20% of next month’s sales.

Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month.

First, we need to calculate the production for January.

Sales= 500 units

Ending inventory= (600*0.2)= 120 units

Beginning inventory= 80 (-)

Total= 540 units

Conversion costs= direct labor + manufacturing overhead

Direct labor= [(40/60)*540]*$18= $6,480

Variable overhead= 21*360 hours= $7,560

Fixed overhead= $25,000

Total conversion costs= $39,040

5 0
3 years ago
Select the correct answer.
TEA [102]
I would say C is the answer bc that’s would i would do in that situation.
7 0
2 years ago
Oh, no! You contract Mononucleosis (Mono) and consequently miss two weeks of work without pay. You do not have any type of disab
Ilia_Sergeevich [38]

Answer:

Take a credit facility and do an insurance cover.

Explanation:

In order to meet your monthly financial commitments, you can seek for upfront credit facility through your organization if such provisions exist or ask for a salary loan which can be deducted from source (Salary).  

To prepare for similar unfortunate incidence in the future, it will be important to secure a life and health insurance cover either through your organization or on an individual basis.  

3 0
3 years ago
If the net present value of the payments at the time of the leases was 88% of the actual market price and the useful life of the
Aliun [14]

Answer:

A. True

Explanation:

Examples of situations that individually or in combination would normally lead to a lease being  classified as a finance lease are:

(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease  term;

(b) the lessee has the option to purchase the underlying asset at a price that is expected to be  sufficiently lower than the fair value at the date the option becomes exercisable for it to be  reasonably certain, at the inception date, that the option will be exercised;

(c) the lease term is for the major part of the economic life of the underlying asset even if title is  not transferred;

(d) at the inception date, the present value of the lease payments amounts to at least substantially  all of the fair value of the underlying asset; and

(e) the underlying asset is of such a specialised nature that only the lessee can use it without major  modifications.

Since at the time of lease the net present value of the payments is 88% of the actual market price and the useful life of the asset was 70% at the end of the lease term and also the title of asset shall not be transferred to lessee at the end of lease term, therefore the lease shall not be classify as finance lease and it shall be classified as operating lease so the answer is A. True

4 0
3 years ago
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