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
AURORKA [14]
3 years ago
8

Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni

ts in a GBP options contract. At the time of the option expiration date, the spot price for GBP was $1.885. What was the net profit/loss on this option to the investor?
a. $203.125
b. $671.8750
c. $468.75
d. $1,140.625
Business
1 answer:
vladimir1956 [14]3 years ago
8 0

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

You might be interested in
Which of the following is the advantage of cash-based accounting?
Alexxandr [17]
A) it is more accurate than accrual accounting.
4 0
3 years ago
Read 2 more answers
As the manager of Margarita Mexican​ Restaurant, you must deal with a variety of business transactions. Provide an explanation f
Shalnov [3]

Answer:

A. Debit Equipment and credit Cash.

  • You purchase equipment and you pay in cash.

B. Debit Dividends and credit Cash.

  • You paid cash dividends.

C. Debit Wages Payable and credit Cash.

  • You paid wages that you owed to your employees. Generally wages are paid at the end of the week and not all months end on a weekend. So you must record wages payable until you actually pay the wages.

D. Debit Equipment and credit Common Stock.

  • You received equipment in exchange for common stock.

E. Debit Cash and credit Unearned Revenue.

  • You received cash in advance for some food that you will deliver in the future.

F. Debit Advertising Expense and credit Cash.

  • You incurred in advertising costs and you paid them in cash.

G. Debit Cash and credit Service Revenue.

  • You sold meals and your clients paid you in cash.

7 0
3 years ago
A firm does not expect to pay dividends in the next four years. beginning five years from today, the firm expects to pay a const
abruzzese [7]
From the data given above, the investor required rate of return on the firm's stock is 10% and is equal to $4,75 that is expected to be paid each year.
If $4.75 = 10%, then the price of the stock which is 100% will be equal to $4,75 * 10= $47.50.
Therefore, the current price of the stock is $47.50.
4 0
3 years ago
Read 2 more answers
The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The p
NikAS [45]

Answer:

a. Number of production operations = 120,000,000 per year.

b. Number of Workers = 1,000 workers.

C. Size = 250,000 ft²

Explanation:

a

Number of production operations is calculated as;

50 models * 1000 units * 400 components * 6 steps

Number of production operations = 120,000,000 per year.

b.

Number of workers is calculated as;

Total operation time ÷ factory operating hours per year;

Factory Operating Hours = 2000.

Calculating total operation time;

= 120,000,000 * 1hr/60min

= 2,000,000 hr/yr

So. Number of workers = 2,000,000 ÷ 2,000

Number of Workers = 1,000 workers.

c. Size of floorspace

Size = Number of workstations * floorspace

Number of workstations = number of workers = 1000

Floorspace = 250ft²

Size = 1000 * 250

Size = 250,000 ft²

3 0
3 years ago
This company became the richest company on earth. british east india company dutch east india company french east india company
Tasya [4]
<span>The company that became the richest company on earth. dutch east india company </span>cuz while all the other european countries were focused on making colonies the Dutch worked on their trade system
6 0
3 years ago
Read 2 more answers
Other questions:
  • People living in rural areas have a victimization rate almost __________ than that of city dwellers.
    6·1 answer
  • How do you display integrity and moral character?
    14·1 answer
  • In a spreadsheet, what is the rectangular space where a row meets a column? A. A formula B. A function C. A calculation D. A cel
    8·2 answers
  • Jermaine, a member of a student organization, supports the move to increase the membership fees for their organization in order
    14·1 answer
  • The type of credit card you want to pay in full on time every time is...
    12·2 answers
  • One of the results of the increase in the older population of the United States is
    6·2 answers
  • CAN SOMEBODY PLEASE ANSWER ASAP WITH 100% CORRECT ANSWER
    13·1 answer
  • Madison Corporation purchased 40% of Jay Corporation for $400,000 on January 1. On June 20 of the same year, Jay Corporation dec
    14·1 answer
  • According to the Small Business Administration, the percentage of businesses that
    11·1 answer
  • which manufacturing strategy can be described as producing products to put into inventory based on a demand forecast
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!