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blsea [12.9K]
2 years ago
8

QUESTION 22 You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date, when

IBM stock sells for $123 per share. You will realize a ______ on the investment. $200 profit $200 loss $500 profit $500 loss
Business
1 answer:
NikAS [45]2 years ago
6 0

Answer:

$500 loss

Explanation:

Since you purchased a call contract for IBM stock, you had the option to buy IBM stock at a specified price ($125) within a specified time (?). The problem is that the price of your call contract was higher than the market price at that specific date. Obviously you will not exercise your option in order to limit your losses.

long call profit = Max [0, (current stock price - strike price) x number of shares] - premium paid)

where:

  • current stock price = $123
  • strike price = $125
  • number of shares = 100
  • premium paid = $5 x 100 = $500

long call profit = Max [0, ($123 - $125)(100)] - $500 = -$500

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Answer:

a file a claim

explanation:

because of the car accident and the injured people they have to file a claim to pay for the car repair and injuries

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3 years ago
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Photon
6 0
3 years ago
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance a
Rasek [7]

Answer:

<u>Bank Reconciliation Statement as of July 31, 2017</u>

Balance at Bank as per cash book (up to date)     $35,480

Add Unpresented Cheques :            

No. 3031                                                                      $1,570

No. 3065                                                                        $561

No. 3069                                                                     $2,338

Less Lodgements not yet credited                          ($10,132)

Balance as per Bank Statement                               $29,817

Explanation:

Step 1 Bring the Cash Book (Bank Balance ) up to date

Debit :

Balance as at July 31                                             $25,699

Note Payable                                                           $9,000

Evan Shaw                                                                   $805

Totals                                                                      $35,504

Credit:

Check No. 3056 Understated                                     $10

Bank service charge                                                     $14

Balance (Up to date)                                             $35,480

Totals                                                                      $35,504

Step 2 Prepare a  bank reconciliation for this company

<u>Bank Reconciliation Statement as of July 31, 2017</u>

Balance at Bank as per cash book (up to date)     $35,480

Add Unpresented Cheques :            

No. 3031                                                                      $1,570

No. 3065                                                                        $561

No. 3069                                                                     $2,338

Less Lodgements not yet credited                          ($10,132)

Balance as per Bank Statement                               $29,817

4 0
3 years ago
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weqwewe [10]

Answer:

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Data provided in the question

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Expected amount = $1,800

Today amount = $1,680

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Since the bond is based on the floating rate not the fixed rate that results in the value of the investment to $1,800

And, the today amount is $1,680 i.e. less than the expected amount so the internet rate should be less as compared with the expected rate

hence, correct option is d.

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