1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spayn [35]
3 years ago
11

A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in th

e afternoon. The premium paid on the call is $7.55. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is:
Business
1 answer:
stepan [7]3 years ago
5 0

Answer:

$3.17

-$7.55

Explanation:

The calculation of stock price per share of Mass Computer is shown below:-

here, Stock price higher than strike price option will be exercised.

Net profit = Stock price - Strike price - Option premium

= $110.72 - $100 - $7.55

Net profit = $3.17

Stock price is lower than the strike price option will fail.

Net profit = Stock price - Strike price - Option premium

= 0 - $7.55

Net profit(loss) = -$7.55

You might be interested in
What happens when the Federal Reserve puts money into the banking system
Anton [14]
When the Federal Reserve puts money into the banking system,<em> short term interest rates fall</em> <span>because there is more capital in the system. This means that  banks are willing to take more risks. 

>>></span><span>The </span>Federal Reserve<span> System‍—‌also termed as the </span>Federal Reserve<span> or the Fed‍—‌is the central banking system of the United States. </span>
4 0
3 years ago
Which of the following describes accrued revenue? (Check all that apply) Multiple select question. The adjustment causes an incr
vaieri [72.5K]

Answer:

  • The adjustment causes an increase in an asset account and an increase in a revenue account.
  • Accounts receivable is usually increased when accruing revenues.
  • They refer to revenues that are earned in a period, but have not been received and are unrecorded.
  • They refer to earnings which have been earned but not yet billed.

Explanation:

Accrued revenue refers to cash earned for selling a good or delivering a service yet the cash has not been received and the transaction was not recorded in the books as revenue. This means that the cash has been earned but it has not been billed to the customer it was earned from.

When the books are being adjusted for this, the accounts receivable - which is an asset account - will increase to show that cash is owed. Revenue will also increase as this was cash earned from delivering a good or service.

6 0
2 years ago
__________ is a contra asset account representing the amount of accounts receivable that we do not expect to collect.
maw [93]

Answer:

Allowance for uncollectible accounts

Explanation:

This account is a contra asset account which says that the account receivable amount is not collected in near future

It is shown in the asset side of the balance sheet

Assets side

Current Assets

Accounts receivable                           XXXXX

Less: Allowance for doubtful debts   (XXXXX)

Net accounts receivable                       XXXXX

It is an estimated amount which is not to be paid by the customer in respect to goods delivered to them

The journal entry would be

Bad debt expense A/c Dr XXXXX

     To Allowance for uncollectible accounts A/c XXXXX

(Being the uncollected amount is recorded)

6 0
3 years ago
Explain how firms decide how much labor to hire to produce a certain level of output
ss7ja [257]

The firms focus on improving marginal returns. Apart from this, they focus on specialization which increases the output. The amount of labor the firm plans to hire depends on the level of output it requires. The firm keeps adding new workers until output reaches its crest or peak.

7 0
3 years ago
Refer to the following selected financial information from our company. Compute the company's profit margin for Year 2.
Marianna [84]

Answer:

a. 14.1%

Explanation:

Year 2

Net Profit Margin = Earnings Before Tax / Sales × 100

                             = $ 67,250 / $478,500 × 100

                             = 14.05 or 14.1 %

3 0
3 years ago
Other questions:
  • Another word used to describe market economies is
    7·1 answer
  • Presented below is information related to equipment owned by Porto Company on December 31, 2017. Cost $5,600,000 Accumulated dep
    6·1 answer
  • Using PERT, Adam Munson was able to determine that the expected project completion time for the construction of a pleasure yacht
    15·2 answers
  • To help finance a new plant, Roxxon, Inc. just sold a noncallable 40 year bond. This $1,000 par bond sells for $1,155 and has a
    15·1 answer
  • If a stock has a preemptive right, it gives current stockholders the right to purchase any new shares issued by the firm, so as
    9·1 answer
  • Vertical analysis is a technique that expresses each item in a financial statement A. as a percent of the item in the previous y
    5·1 answer
  • Which of the following arguments are in favor of active stabilization policy by the government? Check all that apply
    12·1 answer
  • Sheffield Corp. had credit sales of $1696000. The beginning accounts receivable balance was $175000 and the ending accounts rece
    14·1 answer
  • Stephen owns a chemical plant. He is glad that his primary stakeholders are satisfied with the company's growth. However, he is
    13·1 answer
  • The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is cal
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!