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Morgarella [4.7K]
3 years ago
11

Suppose a financial manager buys call options on 26,000 barrels of oil with an exercise price of $111 per barrel. She simultaneo

usly sells a put option on 26,000 barrels of oil with the same exercise price of $111 per barrel. What are her payoffs per barrel if oil prices are $106, $107, $111, $115, and $116?
Business
1 answer:
yanalaym [24]3 years ago
8 0

Answer:

Explanation:

Suppose a financial manager buys call options on 24,000 barrels of oil with an exercise price of $119 per barrel. She simultaneously sells a put option on 24,000 barrels of oil with the same exercise price of $119 per barrel. What are her payoffs per barrel if oil prices are $103, $108, $119, $130, and $135? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be indicated by a minus sign.) 130 $ 135 Market price Payoffs per barrel 108 $ 119 103 $ $

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Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I
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Answer:

$131.58

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The computation of the new stock price is shown below:

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= $250 ÷ 1.90

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Why do we hav food price inflation?
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Mustaine Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places sm
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Answer:

(A) $625 per order

Explanation:

Processing a sales order shall be based on the number of orders processed.

As the total orders processed are:

JIT = 300

Non JIT = 20

Therefore, total orders = 320

Total cost to be allocated = $200,000 that is the order processing cost of previous quarter.

Cost per order shall be \frac{200,000}{320}

= $625 per order.

Note: The order size do not matter.

Therefore, correct option is:

(A) $625 per order

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