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2 years ago

What would the net value of a long straddle position be if the stock price at expiration is $35?

Business

1 answer:

maks197457 [2]2 years ago

6 0

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

Net value of a long Straddle = ($35-$29)-$2.90-$1.95

Net value of a long Straddle=$6-$2.90-$1.95

Net value of a long Straddle=$1.15

Therefore the net value of a long straddle position will be the amount of $1.15

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More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the fol

yuradex [85]

Answer: See explanation

Explanation:

AP = 4.15

SP = 4.0

SQ = 114000 × 2 = 228000

1. Direct Materials Price

= (AQ × AP) - (AQ × SP)

= (246000 × 4.15) - (246000 × 4.0)

= 1020900 - 984000

= 369000 U

2. Direct Materials Quantity

= (AQ × SP) - (SQ × SP)

where SQ = 114000 × 2 = 228000

= (220000 × 4.0) - (228000 × 4.0)

= 880000 - 912000

= 32000 F

3. Direct Labor Price

= (AH × AR) - (AH × SR)

= (58700 × 9.8) - (58700 × 10)

= 575260 - 587000

= 11740

4. Direct Labor Quantity

= (AH × SR) - (SH × SR)

where, SH = 114000 × ½ = 57000

= (58700 × 10) - (57000 × 10)

= 587000 - 570000

= 17000 U

5. Total Overhead Variances

= 352000 - (57000 × 6)

= 352000 - 342000

= 10000 Unfavorable

Check attachment for further details

8 0

2 years ago

Kyle's checking account requires that he maintain a minimum balance of $3000 to avoid a monthly service fee, and his balance at

Crank

C. No, because his lowest balance so far this month has been $2989.30

Start with 3202.93 and add 436.37 = 3639.30 

Then take 650 away (3639.30 - 650 = 2989.20) 

It says that he must maintain a minimum of 3000 so when the check cleared he went below this amount. (just verified on apex)

7 0

3 years ago

Read 2 more answers

Since its organization in January of 2016, Mars Corp began with the issuance of 15,000 shares of $5 par, cumulative, 8% preferre

igomit [66]

Answer:

D) 3 years' worth of dividends will be paid to preferred shareholders prior to paying anything to common shareholders.

Explanation:

Shareholders are the individuals or institutions that hold the stock of a company making the owners of the business. Shareholders can either be common shareholders or preferred shareholders. Common shareholders are more prevalent and have voting rights in matters concerning the company.

Preferred shareholders hold preferred stock. They are rare and have no voting rights in the way the organization is managed. Preferred shareholders are entitled to a fixed amount of dividend every year. Dividends to preferred shareholders have to be paid first before common shareholders are paid out. Usually, common stockholders will be last to paid last in the event of dividends payouts or in times of liquidation.

3 0

3 years ago

Journalize the following transactions assuming the perpetual inventory system:July 3 Sold merchandise on account for $3,750 incl

Archy [21]

Answer:

Explanation:

The journal entries are shown below:

On July 3

Account receivable A/c Dr $3,750

To Sales $3,750

(Being the goods are sold on credit)

Cost of goods sold A/c Dr $2,000

To Merchandise Inventory A/c $2,000

(Being goods are sold at cost)

On July 5

Sales return and allowance A/c Dr $1,050

To Accounts receivable $1,050

(Being sales return is recorded)

Merchandise Inventory A/c $610

To Cost of goods sold A/c Dr $610

(Being sales return is recorded)

On July 12

Cash A/c Dr $2,700 ($3,050 - $1,050)

To Accounts receivable $2,700

(Being cash is received)

On July 17

Cash A/c Dr $7,420

To Sales A/c $7,000

To Sales tax payable A/c $420 ($7,000 × 6%)

(Being the goods are sold on credit)

Cost of goods sold A/c Dr $3,830

To Merchandise Inventory A/c $3,830

(Being goods are sold at cost)

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3 years ago

A salesperson at a jewelry store earns 6% commission each week. Last week, Heidi sold $750 worth of jewelry. How much did she

sertanlavr [38]

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6 0

2 years ago