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nydimaria [60]
3 years ago
9

Read the scenario.

Business
2 answers:
Lorico [155]3 years ago
7 0

Answer:

Using credit will cost Bill more money overtime

Using credit may tempt Bill to but more than he can afford .

Explanation:

Buying in credit is an act of paying for purchased goods in a future date.This can be done through so many media but the most popular among them is the use of credit cards. The prices for credit sales mostly come with premium.

Buying in credit has so many disadvantages. Some of them are

Spending more on an item : By the time the charged interest are factored into the purchase price , the buyer ends up spending more.

Temptation to buy more : Buying on credit may tempt buyer to buy more than he budgeted on even needs considering the opportunity of buying to pay at a later date.

amm18123 years ago
3 0

Answer:

Using credit will cost Bill more money over time.

Using credit may tempt Bill to buy more than he can afford.

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You are long 2 contracts of 1-yr call on MSFT with strike (K) of $220, and also long 2 contracts of 1-yr call on MSFT with strik
Dafna1 [17]

Answer:

The correct answer is $320.

Explanation:

According to the scenario, computation of the given data are as follows:

MSFT price at expiry (S_T) = $250

MSFT with strike (K) Contract 1 = $220

MSFT with strike (K) Contract 2 = $120

So, we can calculate the payoff by using following formula:

Payoff = [(Stock price at expiry (ST) - Strike price of $220)] + [(Stock price at expiry (ST) - Strike price of $120)]

BY putting the value, we get

Payoff =  ($250 - $220) + ($250 - $120)

= $30 + $130

= $160

As there are 2 contracts, then

Total payoff = $160 × 2

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3 years ago
Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,600. The bank reconciliation for the period showe
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Answer:

Option B $17,285 is correct the answer.

Explanation:

<u>Computation Table                       </u>

<u>Particular                         Amount</u>

Ending balance        $18,600

Add: Deposit in transit $1,550

Less: Outstanding  $2,100

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<u>Less</u><u>: EFT                 $1,600 </u>

<u>Cash balance          $17285 </u>

<u></u>

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Answer:

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