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Marysya12 [62]
3 years ago
11

Assume a pension fund purchased stock at $53. Call options at a $50 exercise price presently have a $4 premium per share. The pe

nsion fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is $56, what is the gain or loss per share to the pension fund (including its gain from holding the stock as well)?
Business
1 answer:
Yakvenalex [24]3 years ago
7 0

Answer:

$1

Explanation:

Data provided in the question:

Purchasing price of stock = $53

exercise price of the stock = $50

Price of the stock = $56

Premium per share = $4

Now,

The gain is calculated as :

Gain = exercise price + Premium per share - Purchased stock  

or

Gain = $50 + $4 - $53

or

Gain = $1

Hence,

The gain per share to the pension fund is $1

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5 0
3 years ago
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beverly would like to take action to improve interprofessopmal communication among staff members. To be a successful agent of ch
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The action that Beverly has to take first to be able to promote interprofessional communication would be Collection information about the situation.

<h3>What is interprofessional communication?</h3>

This is a term that has to do with the communication that takes place between the people that have similar occupation or profession.

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3 0
2 years ago
A credit entry was recorded for unearned revenue and a debit for cash. What does this entry indicate?
rusak2 [61]

Answer:

This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability

Explanation:

This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability.

Note: Debit side increases asset(cash) and expenses while credit side decreases liability,income and equity.

Credit side decreases asset(cash) and expenses while debit side increases liability,income and equity.

7 0
2 years ago
Which of the following is an example of a negative externality?a. bad weather reduces the size of the wheat cropb. a reduction i
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3 years ago
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Answer:

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giving the bank public relations boost, thereby improving its public image.

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The creation of publicity opportunities through this fundraiser enhances the bank's activities.  Awareness of its services is created through the sponsorship.  People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged.  The fundraiser creates huge goodwill.  Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.

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