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WITCHER [35]
2 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]2 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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On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600
Nastasia [14]

Answer:  E) debit Contributed Capital, Treasury Stock, $1,800

Explanation:

Treasury stock was bought at price of;

= 22,000/1,000

= $22

Sold 600 for $25 so they made a profit of;

= (25 - 22) * 600

= $1,800

This gain was sent to Contributed Capital, Treasury Stock.

Now that stock is to be sold on March 1, it is sold at $15. Loss from initial purchase is;

= ( 22 - 15) * 400

= $2,800

Debit Contributed Capital, Treasury Stock of the maximum amount it can be debited of to reflect this loss which would be $1,800 which was gained in the February purchase. The rest of the loss will go to Retained earnings.

3 0
2 years ago
Which is not a method of fiscal policy? government purchases of goods and services changing tax rates changes in the money suppl
Sedbober [7]
<span>The answer is changes in the money supply</span>
5 0
3 years ago
The minimum wage is increased from $7.25 to $9.00 per hour. Calculate the elasticity of demand for fast food workers over the re
deff fn [24]

Answer:

As the question was not complete. I have attached the complete question in the attachment. Please refer to attachment.

Explanation:

<em>By using, LD = 95- 3w and w1 = 7.25 and w2 = 9. We get, </em>

<em>LD1 = 95-3(7.25) = 73.25 </em>

<em>LD2 = 95-3(9) = 68 </em>

Elasticity = Change in labor demand/ change in wage rate = ((68- 73.25)/ 73.25)/ ((9-7.25/7.25)) = -0.33

The 11 percent change in the wage rate causes, 33% change in labor demanded, as shown by the elasticity, the labor demand decreases with increase in wage rate.

4 0
2 years ago
Information systems in general are helpful because they are used for making informed decisions using more accurate reports. Howe
lesya692 [45]

Information systems have automated information management, making it quicker to process large amounts of information, but it can also create issues such as information security and IT competitiveness.

Information security is a problem arising from information systems that can configure fraudulent techniques to steal sensitive data from people and organizations and gain benefits, so it is essential to be prepared for the risks and support from specialized security companies.

The advancement of artificial intelligence can also correspond to a risk in the work environment, such as the competitiveness with IT of professionals who are not prepared to deal with digital innovations.

Therefore, it is necessary that organizations use IT to bring benefits in the speed of organizational processes, preparing themselves for risks and offering training and qualification to their employees to deal with digital systems.

Learn more here:

brainly.com/question/13299592

5 0
2 years ago
What political reasons Government intervention in markets​
Varvara68 [4.7K]

Answer:

The main reasons for policy intervention by the government are:

To correct for market failures.

To achieve a more equitable distribution of income and wealth.

To improve the performance of the economy.

Explanation:

To correct for market failures: This is achieve by creating regulation institutions for the most important sectors in any given economy e.g. Federal Reserve, Treasury Department

To achieve a more equitable distribution of income and wealth: This is the aim of a develop economy to allocate the resources where needed and for that some countries rely in the government capability to prevent Monopoly creation or to protect its Internal Labor market.

To improve the performance of the economy.: In order to meet the economical agenda of any given government the institutions use variation on the interest rate, the government expenditure or the tax policies.

6 0
3 years ago
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