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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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Which is a stepping-stone toward future education
FrozenT [24]

Answer:

A High School Diploma is a stepping-stone toward future education.

Explanation:

A High School Diploma will definitely be a perfect move and a stepping-stone towards future education, which undoubtedly, will pave the way for the further and higher education of the people. They can proceed ahead easier if they have achieved this first milestone. This will prove as the first step towards their educational journey, which surely need to be taken, at least, anyway.

4 0
3 years ago
What is the maximum loan amount a bank will provide a borrower under the following circumstances: LTV: 70% Appraised Value: $320
valkas [14]

Answer:

$231,000

Explanation:

The maximum loan amount that the borrower would get from a bank is the 70% of the contract price which is computed thus:

The understanding here is that the bank would provide 70% counterparty funds which is equivalent to 70% of $330,000 i.e $231,000(70%*$330,000).

In other words,the borrower should be willing to provide 30% of $330,000 while the bank complements the borrower's efforts withe balance of 70%

5 0
3 years ago
L Corporation produces and sells 13,800 units of Product X each month. The selling price of Product X is $20 per unit, and varia
Ray Of Light [21]

Answer:

It will be a financial disadvantage of 52,800

Explanation:

                Continued Discontinued     Differential

Sales             276000               -                 -276,000

Variable       -193,200               -                    193,200

Fixed             -30,000               -                    30,000

Allocate cost -73000      -73000                       -  

Result            - 20,200      -73,000              -52,800

We compare each alternative:

if discontinued only the allocate cost will remain.

but we also loss the contribution of the product sales.

Sales 13,800 x 20

Variable 13,800 x 14

Tracable Fixed total fixed cost - unavoidable fixed cost

                                   103,000 - 73,000 = 30,000

Allocate 73,000

Once we got the number we plug into the table and calcualte the differential income.

8 0
4 years ago
You are evaluating investments in U.S. equities and Mexican equities. Your stock analysts anticipate that U.S. equities will app
Advocard [28]

Answer:

14.32%

Explanation:

We have the investment sum of 100 dollars

We convert to mexican pesos

100x0.14286

= 700 MP

700 mexican pesos invested on equities gets 25% return

Redeemable amount after a year = 700 x (1+15%)

= 805

After a year money gotten back in dollars

805 x 0.142015

= 114.32 dollars

Net return = 114.32 - 100 = 14.32

Expressed in percent = 14.32%

3 0
3 years ago
Which feature helps streamline the purchasing process once a customer approves an estimate?
Lina20 [59]

The feature helps streamline the purchasing process once a customer approves an estimate is Copy to purchase order from an estimate. Thus the correct answer is B.

<h3>What is a customer?</h3>

A customer refers to a person who purchases the product. He may or may not utilize the product. The final user of any product is referred to as a consumer.

Once your estimate has been approved by the client, you can quickly copy it to a purchase order to speed up the procedure. Purchase orders only receive copies of products that are clearly indicated as vendor purchases.

Therefore, option B Copy to purchase order from an estimate is appropriate to answer.

Learn more about customers, here:

brainly.com/question/14530604

#SPJ4

The complete question is Question 1

Which feature helps streamline the ordering process once a customer approves an estimate?

Price Rules

Copy to purchase order from an estimate

Automatic Purchase Orders

Export Data

4 0
2 years ago
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