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PolarNik [594]
4 years ago
11

Suppose you believe that basso inc.'s stock price is going to increase from its current level of $22.50 sometime during the next

5 months. for $3.10 you can buy a 5-month call option giving you the right to buy 1 share at a price of $25 per share. if you buy this option for $3.10 and basso's stock price actually rises to $45, what would your pre-tax net profit be?
Business
1 answer:
JulijaS [17]4 years ago
6 0

The pre-tax net profit can be calculated using the formula:

Net Profit = Final Stock Price – Buying Cost – Option Cost

Substituting the given values into the equation will result in:

Net Profit = $45 - $25 - $3.10

<span>Net Profit = $16.90</span>

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A divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income. She collects another $2,50
mezya [45]

Answer: No contribution can be made

Explanation:

The options to the question are:

a. No contribution can be made

b. A contribution can be made based only on the income received from the trust fund.

c. A contribution can be made based only on the alimony payments received

d. A contribution can be made based on both the income received from the trust fund and the alimony payments received

From the question, we are informed that a divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income and that she collects another $2,500 per year in alimony payments.

Based on the above analysis, the woman cannot make a contribution to an Individual Retirement Account this year.

6 0
3 years ago
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Aneli [31]

Answer:

Statement B is correct.

Explanation:

High Operating Leverage represents higher fixed cost in comparison to variable cost, and thus that means the company will get its break even earlier or we can say with low units, but after break even profits will be higher.

As in the given case Firm A has higher Operating Leverage than Firm B, thus Firm A has lower Break even point but eventually its profit after reaching break even will grow higher.

Thus, Statement B is correct

4 0
3 years ago
Which man made fiber is resistant to wrinkles
nirvana33 [79]

The polyester fiber is often blended with fibers such as cotton, wool, rayon, acetate and linen. Fabrics containing the polyester fiber are easy to care for and are wrinkle resistant in wear.

3 0
3 years ago
To improve the effectiveness of the marketing control process, the marketing manager should?
Maslowich

Answer:

The manager for what ever business there in should reach sufficient standards for the clients and to make clients feel good and there actually getting something good out of He/Hers Company.

Explanation:

7 0
2 years ago
The office supports the _____ in a business through engaging sufficient staff to convince the public to purchase the goods and s
borishaifa [10]

Answer:

c, I think

Explanation:

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Sorry, I don't know if this is correct or not, but I hope this answered your question. Have a nice day! ^ ^

4 0
2 years ago
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