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PolarNik [594]
3 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]3 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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You were planning to spend Friday working at your part-time job, but a friend asks you to go kayaking.
N76 [4]

The statement that applies are the rental of ant kayak equipment you need the wages that you forgo by going kayaking and the fee for accessing the river in a national park

Explanation:

The true cost for going to a particular place includes all that costs that are included from moving to a place that includes all the wages and the vehicle cost

Here the opportunity costs includes the fee to go to the national park by crossing the river and the amount that is needed to be spent on the equipment and the wages that must be forgo by going to kayaking all these statements best includes the true costs of going to kayaking

7 0
3 years ago
Does GAAP routinely require companies to disclosure forecasts of financial variables to external users? Indicate yes or no and e
Andrei [34K]

Answer:

No, they don´t.

Explanation:

Forecast is not required by GAAP, as the <u>Relevance</u> and the <u>Faithful</u> <u>Representation</u> are concepts that are not compatible with data projection.  Forecast implies estimates, and subjective interpretations that do not fulfill financial statements aim and are difficult to verify.

4 0
3 years ago
A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis poi
Grace [21]

Answer:

8.53 years

Explanation:

Calculation for the duration of the bond

The first step is to calculate for Change in Bond Price

Change in Bond Price = -(30)/1,170

Change in Bond Price = -0.0256×100

Change in Bond Price =-2.56%

Second step is to find the Effective Duration

Effective duration = -0.0256/0.0030

Effective Duration = 8.53 years

Therefore the duration of this bond will be 8.53 years

4 0
3 years ago
six packs of cola are on sale for 1.50, if a customer buys a 24 pack, what is the total charge including 8% sales tax?
valkas [14]

Answer:

$6.48

Explanation:

A pack of six costs $ 1.50

A pack of 24 will cost $(1.50 x 4)= $ 6

8% tax will be: 8/100 x 6= .08x6= 0.48

Total = $6+$ 0.48 = $6.48

6 0
2 years ago
As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketi
steposvetlana [31]

Answer:

product

Explanation:

The product is an item that the company offer to its customer for buying the product. It is not only the goods that to be kept physically but it also consist of the services and ideas so that it become differentiate with the competitor. The product can be differentiate in terms of cost, quality, quantity, presentable form via having the innovative ideas

So, the 2nd last option is correct

8 0
2 years ago
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