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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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A system demo should occur After every iteration .

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1 year ago
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cre
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Answer:

$28,800

Explanation:

Follow the given collection policy :

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<em>therefore,</em>

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3 years ago
Occupational fraud comes in many shapes and sizes. The fraud at Rite Aid is one such case. On February 10, 2015, the U.S. Attorn
Sliva [168]

Answer:

1. To encourage various groups to come forward and report fraud, Dodd-Frank extended whistle-blowing privileges and rewards to which of the following?

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<u></u>

Explanation:

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D

Explanation:

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Answer:

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