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WITCHER [35]
3 years ago
15

The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c

an be exercised profitably. is out of the money. is out of the money and can be exercised profitably. is in the money and can be exercised profitably. is in the money.
Business
1 answer:
erastovalidia [21]3 years ago
7 0

Answer:

Is out of the money

Explanation:

A strike price is a particular price which if activated, derivative contracts can be sold or bought. Derivatives are considered as products in finance where underlying assets are major determinants of their value.

The stock price is considered as the current price that a share of stocks is sold and bought on the market.

Because the strike price is $65 and the stock price (market price) is $60, Disney is out of money and cannot be exercised profitably.

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After evaluating Null Company’s manufacturing process, management decides to establish standards of 3 hours of direct labor per
docker41 [41]

Answer:

Direct labor rate variance = (SR - AR) \times AH

October = ($15 - $15.20)  \times 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25)  \times  22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH)  \times  SR

October = (16,800 - 16,250)  \times $15 = 8,250 Favorable

November = (18,000 - 22,000) \times $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

Explanation:

Computing variances for each month

Particulars                            October                  November          Equation

Total units produced           5,600 units             6,000 units            (a)

Standard hour per unit           3 hours                   3 hours                (b)

Total standard hour SH          16,800                   18,000              (c) = (a)*(b)

Total standard cost

of labor @ $15 SR per hour  $252,000                $270,000          (d) = (c) * 15

Actual hours used AH           16,250                    22,000                  (e)

Actual cost                            $247,000               $335,500                (f)

Actual Rate per hour AR          $15.20                   $15.25              (g) = (f)/(e)

Using the above information we have

Direct labor rate variance = (SR - AR) \times AH

October = ($15 - $15.20)  \times 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25)  \times  22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH)  \times  SR

October = (16,800 - 16,250)  \times $15 = 8,250 Favorable

November = (18,000 - 22,000) \times $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

8 0
4 years ago
You are driving a car that does not have anti-lock brakes (abs). if the road is slippery and you need to make an emergency stop,
katen-ka-za [31]
Pull the emergency brake
5 0
3 years ago
Read 2 more answers
Which of the following is an authorization from the local government to carry on an enterprise?
jeka57 [31]
The correct answer is business license.

Business license is an authorization from the local government to carry on an enterprise.  Business license is needed by all operating businesses in all geographical location. Without a business license, an operating business can be closed down by government authorities with corresponding penalties.
3 0
3 years ago
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic inst
madam [21]

Answer:

The net benefit is -$26,000

Explanation:

Given the above information,

The total cost of manufacturing 12,000 circuit boards

= 12,000 × $34

= $408,000

Total purchase price

= 12,000 × $34

= $408,000

Fixed overhead cost applied

= 12,000 × $6

= $72,000

The rental income = $46,000

Outsourcing cost

= Total purchase price + Fixed overhead cost applied - Rental income

= $408,000 + $72,000 - $46,000

= $434,000

Therefore, Net benefit

= Total cost of manufacturing - Outsourcing cost

=$408,000 - $434,000

= -$26,000

8 0
3 years ago
Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356
NikAS [45]

Answer:

Missing word <em>"a. What must the six-month risk-free rate be in Japan"</em>

<em />

a. Spot rate = 1 US $ = 1.2377 Aus.dollar

Forward rate = 1 US $ = 1.2356 Aus.dollar

<u>1.2356</u> = <u>(1 + i Ad)</u>

1.2377     (1 + 0.05)

0.9983 * (1.05) = 1 + i.Ad

1.048215 = 1 + i.Ad

i.Ad = 1.048215 - 1

i.Ad = 0.048215

i.Ad = 4.82%

b. Spot rate = 1 US $ = 100.3300 Japan Yen

Forward rate = 1 US $ = 100.0500 Japan Yen

<u>100.0500</u> = <u>(1 + i Ad)</u>

100.3300     (1 + 0.05)

0.9972 * (1.05) = 1 + i.Ad

1.04706 = 1 + i.Ad

i.Ad = 1.04706 - 1

i.Ad = 0.04706

i.Ad = 4.71%

4 0
3 years ago
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