Answer:
Payoff = $8.5
Profit = $4.5
Explanation:
<u>from the question</u>
Stock price = $38.5
strike price = $30
premium per share (price paid for the option) = $4
Call payoff per share on a long position, which is calculated as every $1 above the strike price
= MAX (Stock price - strike price, 0)
= (38.5 - 30)
= $8.5
Call profit on a long position
= Payoff - Initial investment
= (MAX (Stock price - strike price, 0) - premium per share)
= (38.5 - 30) - 4
= 8.5 - 4
= $4.5
Answer:
a farmer
Explanation:
because farmers make food from soil
Answer:
Preferred dividend is noncumulative which means that it will not accrue if company was unable to pay in any period.
Dividends in 2021
Preferred dividends:
= Number of preferred shares * par value * dividend percentage
= 2,400 * 50 * 5%
= $6,000
Dividends of $5,800 were declared which is not enough to cover even preferred shares so preferred shares will take all the dividends.
Preferred share dividends = $5,800
Common share dividends = $0
Dividends in 2022:
Preferred dividends = $6,000
Common dividends:
= Declared dividends - Preferred dividends
= 13,100 - 6,000
= $7,100
Dividends in 2023:
Preferred dividends = $6,000
Common dividends:
= Declared dividends - Preferred dividends
= 28,800 - 6,000
= $22,800
What are the choices? A trade off in this situation would be where she takes money out of her other budgets to put toward this one, for example, if she took 3 dollars out of her jewelry budget and put those 3 dollars into her t-shirt budget to buy the 8 dollar shirt.
Answer:
(A) small,small
Explanation:
The greater the elasticities of supply and demand, the greater the deadweight loss of a tax and vice versa. Tax raises the price the buyer pay, lowers the price the sellers receive and reduces the quantity sold. Therefore a greater reduction in the quantity exchange in the market causes a greater deadweight loss; and deadweight loss increases as tax increases.