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daser333 [38]
3 years ago
5

A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29, an

d rises to $32 before the expiration date. What is the maximum profit per unit to the speculator who owned the put option assuming he or she exercises the option at the ideal time
Business
1 answer:
Scrat [10]3 years ago
8 0

Answer: - $3

Explanation:

We should note that the holder of a put will gain when the share price is below the exercise price.

Since the gain with regards to the question is ($30 - $29) = $1 and the premium paid is 4, then the maximum profit per unit will be:

= Gain - Premium paid

= $1 - $4

= -$3.

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The contribution controllable by a segment manager is $ 1,850

Explanation:

Segment Manager`s performance is evaluated on be bases of items directly controllable by them ( controllable contribution)

<u>Calculation of Controllable Contribution :</u>

Net Sales                                                                        $5,250

<em>Less</em> Variable Costs :

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Controllable Contribution                                                3,600

<em>Less</em> Controllable Costs:

Fixed Cost Controllable                                                    (600)

Unallocated costs                                                             (1,150)

Contribution Controllable -Segment Manager                1,850

8 0
3 years ago
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5 0
2 years ago
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maw [93]
The true correct answer is C my dude
4 0
3 years ago
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Phantasy [73]
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3 years ago
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