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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.

You might be interested in
The political business cycle refers to the phenomenon that just before elections, politicians enact _________ policies. After th
ArbitrLikvidat [17]

Answer:

The political business cycle refers to the phenomenon that just before elections, politicians enact <u>expansionary</u> policies. After the elections, the bad effects of these policies (for example, <u>a higher inflation​ rate</u>) have to be counteracted with <u>contractionary</u> policies.

Explanation:

Elections are won or loss depending on how the country's economy is doing, all the talk about policies, environment, health care, education, is just non-sense when you are at a voting booth.

When Bill Clinton was running against Bush father he wanted to focus his campaign on things he considered important issues, e.g. health care, education, environment, etc., and wasn't doing very well in the polls until his economic adviser hung a sign that read "It's the economy STUPID", and he started to change the focus of his campaign.

Just after the last presidential election CNN posted an article about a Muslim Hindu woman (who also has very dark skin) that voted for Donald Trump because she was having problems with her health premium. She is or was a CNN independent collaborator and she admitted that Trump represented everything she hated and she probably represented everything Trump hated, but she couldn't ignore her personal finances when voting.

That is a phenomenon that happens all around the world, every single Russian knows Putin is a corrupt mobster, in Argentina a former President who ran again won the election (as vice-president this time) while facing 13 different jail orders for corruption charges, and lately we have Johnson who is a wife-beater in the UK, and the list covers the whole world.

Presidents in office need a growing economy and they need it right before an election.

8 0
3 years ago
Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c
Ipatiy [6.2K]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the break-even point in units and sales dollars:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

<u>Now, the margin of safety and margin of safety rate:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

5 0
3 years ago
An oil-producing country can sell 7 million barrels of oil a day at a price of $120 per barrel. If each $1 price increase will r
Sunny_sXe [5.5K]

Answer:

what price will maximize the country's revenue

maximizing price, therefore, is 90+x, and the number of barrels sold is 7,000,000−100,000x.

Explanation:

revenue=price×quantity

The price is 90+x, where x is the change in price, and the quantity is 7,000,000−100,000x

take the derivative of that function.

r(x)=(90+x)(7,000,000−100,000x)=−100,000x2−2,000,000x+630,000,000⇒r′(x)=−200,000x−2,000,000

maximizing price, therefore, is 90+x, and the number of barrels sold is 7,000,000−100,000x.

8 0
3 years ago
Brief Exercise 4-08 In 2020, Kingbird Corporation reported net income of $1,171,600. It declared and paid preferred stock divide
Verizon [17]

Answer:

$4.33 per share

Explanation:

Given that,

Net income = $1,171,600

Preferred stock dividends paid = $265,400

weighted average of common shares outstanding = 209,100

Therefore,

Earnings per share:

= (Net income - Preferred stock dividends paid) ÷ weighted average of common shares o/s

= ($1,171,600 - $265,400) ÷ 209,100

= $906,200 ÷ 209,100

= $4.33 per share

Hence, the Kingbird 2020 earnings per share is $4.33.

3 0
3 years ago
Compared to the other coaches, Doug seems to...
Brut [27]

There are different kinds of theories. Compared to the other coaches, Doug seems to resemble more characteristics of Theory Y.

<h3>What does Theory Y assumes?</h3>

Theory Y is known to state or talks about a positive aspect or view of human nature and it is known to also assumes that people are generally industrious, creative, etc. and they can handle  responsibility and also be self-controlled in their jobs.

<h3 />

Theory Y managers are known to have the following qualities such as being optimistic, having positive opinion about other people, etc.

See full question below

Compared to the other coaches, Doug seems to resemble more ________ characteristics.

Multiple Choice

extrinsic

Theory Y

Theory X

evidence-based

contingent

Learn more about Theory Y from

brainly.com/question/25813547

7 0
2 years ago
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