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Virty [35]
3 years ago
10

Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the n

ext 5 months. For $5.10 you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share. If you bought this option for $5.10 and Florio's stock price actually dropped to $60, what would your pre-tax net profit be
Business
1 answer:
Lunna [17]3 years ago
4 0

Answer:

$19.9

Explanation:

According to the given situation the computation of pre-tax net profit is shown below:-

Net pre-tax profit = Option exercised per share  + Actual stock price at the end + Profit - Option premium

= $85 + $60 + $25 - $5.10

= $19.9

Therefore for computing the pre-tax net profit we simply applied the above formulas.

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If the observation were real, would it provide evidence for or against the idea that the universe is expanding?
Sav [38]

The <u>Andromeda Galaxy</u>, a member of our local group, is moving toward us.

Our neighborhood galaxy, the Andromeda Galaxy, is moving closer. Since the beginning of the universe, which took place billions of years ago, it has been expanding.

Everything in the universe is drifting away from one another via space because there is no center to the universe. Our local group, which is bound together by gravitational attraction, includes the Andromeda galaxy.

The Andromeda Galaxy is our local group's biggest elliptic galaxy. It is larger than our own galaxy, the Milky Way, by more than thrice. The Local Group, one of many different groups of galaxies that are gravitationally connected to one another, includes both galaxies.

To learn more about the universe expanding

brainly.com/question/14142657

#SPJ4

4 0
2 years ago
Southeast Airline had retained earnings of $1.5 million, sales of $5 million and net income of $0.5 million this year. It also p
tatyana61 [14]

Answer:

$1.86 million

Explanation:

Given the above data, we can calculate the retained earning for next year to be;

Retained earning this year end = $1.5 million retained earning at the beginning + $0.5 million net income - $0.2 million dividends

= $1.8 million

8 0
3 years ago
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisio
ELEN [110]

Answer:

Veronica is wrong because if Percy division is close, it's fixed won't be eliminated and as such the cost will be shouldered by the other divisions which will lead to a $9,400 reduction in profit.

Though eliminating Percy division will prevent the loss of $26,200. However with a fixed cost totalling $35600 which will have to be beared by other five divisions, eliminating Percy division won't be a good idea.

Explanation:

Kindly chech attached picture

8 0
3 years ago
If demand shifts right and price increases, then the total revenue to the group of sellers increases for both elastic and inelas
dimaraw [331]

Answer:

Yes that is true because revenue= price multiply by quantity so if price increases then revenue will increase. the total revenue for sellers will be greater in elastic curves because the quantity supplied is increased by a larger amount than the increase in price and they wil earn more revenue and vice versa will inelastic supply curve.

3 0
3 years ago
The LIFO inventory method assumes that the cost of the latest units purchased are:
Scilla [17]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The LIFO inventory method assumes that the cost of the latest units purchased are:

<u>Under the Last-in, First-out method the first units on inventory are the ones left to ending inventory. On the contrary, the last units are the first ones to go to the cost of goods sold. </u>

a. the last to be allocated to the cost of goods sold. False, this is under the FIFO method.

b. the first to be allocated to ending inventory. False, this is under the FIFO method.

c. the first to be allocated to the cost of goods sold. True.

d. not allocated to cost of goods sold or ending inventory. False, they are allocated to cost of goods sold.

4 0
4 years ago
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