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Alinara [238K]
3 years ago
9

Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock thre

e weeks ago was $42.70. Today, RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80. What is the intrinsic value of your put contract
Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

$25

Explanation:

We can calculate intrinsic value by intrinsic formula

Formula : intrinsic Value = (purchased price- current price) x 100

intrinsic Value = (45-44.75) x 100

intrinsic  Value =  $25

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Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (
MrRissso [65]

Answer:

1. $51,000

2.$11,000 Gain

Explanation:

(1) Calculation to determine At what amount will Calaveras value the pickup trucks

Using this formula

Trucks value =Fair value + Cash paid

Let plug in the formula

Trucks value=$45,000+$6,000

Trucks value=$51,000

Therefore Calaveras value the pickup trucks at $51,000

(2) Calculation to determine How much gain or loss will the company recognize on the exchange

Using this formula

Gain or loss on exchange =Fair value - Book value

Let plug in the formula

Gain or loss on exchange=$45,000-$34,000

Gain or loss on exchange=$11,000 Gain

Therefore the company will $11,000 GAIN recognize on the exchange

6 0
3 years ago
The term ___________ is a popular way to describe the recession-expansion pattern followed by the economy.
UNO [17]
The term BUSINESS CYCLE is a popular way to describe the rescission-expansion pattern followed by the economy. 
5 0
3 years ago
What term means the unused option when deciding how to use one's<br> resources.
andrezito [222]

Answer:

Opportunity cost

6 0
3 years ago
"Redfox Pest Control Service had revenues of $425,000 and expenses of $338,000 for the current year, ended June 30. At the begin
andrew-mc [135]

Answer: The options are given below:

A. $292,000

B. $267,250

C. $205,250

D. $275,250

The answer is D. $275,250

Explanation:

Net profit = 425,000 - 338,000 = $87,000

Common Stock =110,000 + 25,000 = $135000

Retained Earnings = 70,000 + 87,000 = $157000

Less: Dividend paid = -$16,750

We will calculate shareholders equity as follows:

Total shareholders' Equity = common stock + retained earnings - dividend paid

=> $135000 + $157000 - $16,750

= $275,250

7 0
3 years ago
Read 2 more answers
A consumer uses goods and services to _____.
allochka39001 [22]
The answer is...

A consumer uses goods and services to satisfy economic wants.
8 0
3 years ago
Read 2 more answers
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