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3 years ago

Which of the following persons trade for their own account on the floor of an options exchange?

Business

1 answer:

lesya692 [45]3 years ago

3 0

Answer:

II. Registered Options Trader

Explanation:

A registered options trader is a type of floor trader that only trades securities for their own account. Registered options traders are not necessarily required to be market makers (large investment banks or other financial institutions that buy and sell securities and charge a spread).

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Sally is in the business of purchasing accounts receivable. Last year, Sally purchased an account receivable with a face value o

marusya05 [52]

Answer:

Sally’s basis in the Account Receivable is $60,000

She has a bad debt deduction of $0. There is no Bad debt deduction for Sally. Rather she made a profit on the transaction.

Explanation:

The Account Receivable can be defined as a Debt Instruments. Debt instruments in accounting are valued at Lower of Cost or Net Realizable Value.

Cost is the amount of cash or its equivalent that was expended to obtain an asset. The cost of this Account Receivable therefore is 60,000

Net realizable value (NRV) is the value that can be realized from the sale of an asset. Net Realizable value of the Account Receivable therefore is 80,000.

Therefore the value to be utilized as the value of the Account Receivable 60,000.

Below is the accounting entries to record the transaction and recognized profit.

For the Face Value of the Debt

Debit: Account Receivable Account(Debtors) 60,000.00

Credit: Account Receivable Purchase Account 60,000.00

For the payment of the A/R

Debit: Account Receivable Purchase Account 60,000.00

Credit: Bank 60,000.00

For the settlement received on the A/R

Debit: Bank 65,000.00

Credit: Account Receivable Account(Debtors) 60,000.00

Credit: Profit & Loss 5,000.00

8 0

3 years ago

You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price

Lera25 [3.4K]

Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes upward to $65 so you lose only $5 but it falls than the stock would be $0

Hence, the break even price of this position is $65

Therefore by applying the above formula we can get the break even price and the same is to be considered

4 0

3 years ago

A company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier a

stepladder [879]

The answer is 12$ per hour

4 0

3 years ago

The United States currently imports all of its coffee. Suppose the annual demand for coffee by U.S. consumers is given by the de

Vlada [557]

Answer:

(a) $7; $205 million

(b) $9; $195 million

(d) $390 million

(e) Loss = $10 million

Explanation:

(a) Price paid by consumers when no tariff imposed:

= Marginal cost + Distribution cost

= $6 + $1

= $7

Quantity demanded:

Q = 240 - 5P

= 240 - 5 × $7

= 240 - $35

= $205 million pounds

(b) At imposed tariff of $2 per pound, then the new price paid by consumers:

= Marginal cost + Distribution cost + Tariff

= $6 + $1 + $2

= $9

New quantity demanded:

Q = 240 - 5P

= 240 - 5 × $9

= 240 - $45

= $195 million pounds

= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)

= ($2 × $195) + (0.5 × $2 × $10)

= $390 + $10

= $400 million

(d) Tax revenue collected by government:

= Quantity demanded under tariff × tariff

= $195 × $2

= $390 million

(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.

Loss = $400 million - $390 million

= $10 million

4 0

3 years ago

The development methodology where each part of a project is done in order after each other is called

patriot [66]

Answer:

Agile methodology

Explanation:

This is the methodology adopted in project development most of the time.

This approach is usually been used because the customer could not wait for so long till the completion of the project.

For this i would give you an example that we order some food at a restaurant. The waiter come to us and he keeps on giving us food after every short intervals like water, salad, starter and soups to keep us engage. Otherwise the customer would lose his temper while waiting for so long. We must say that the attention span of the people is very short , they could not wait due to lack of patience.

So in real world of project development we adopt agile methodology where we develop and deliver the project to customer in every little intervals. In this context our customer use to be in loop meanwhile the development of whole project. It is good for project manager to get feedback from the customer side by side on every little chunk of project. This approach is very good to keep your customer in loop of development . We could do negotiation meanwhile ,if customer needs some changes we could do it side by side.

Agile methodology is most of time adopted when the customer is not potential and less technical. In this case the customer could not give clear requirements to team for developing the project. During this methodologies we keep on tracking the user demands and requirements. The team lead or business analyst use to elicit the dos and dons of the project. In this way of project development we could easily give clear ad transparent picture to our customer that hows your project is going. There are lot project development methodologies but agile development is one the best methodology to keep the customers in loop. While in loop with customers it is easy for team to maintain the quality assurance side by side , QA team could also get involve for the rectification of the project.

5 0

3 years ago