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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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Happy Foods and General Grains both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a b
labwork [276]

Answer: introduce more differentiation

Explanation: Product differentiation is a method of using various tactics to make a product stand out from the rest of the similar products sold by a competitor, in an effort to make it more appealing to its customer base. This means differentiating the product so much, that it will make it more attractive for customers to buy. This can be anything from making the product's packaging more aesthetically appealing, including some form of a bonus/gift for purchasing the product (like getting a free toy in each cereal box) etc. In the end by applying product differentiation the one company will increase the customer benefits of purchasing this product from them, hereby gaining a competitive advantage over the other company.

3 0
3 years ago
When calculating the net operating income of a property, it is important to identify any expenses that will be incurred in attem
Fantom [35]

Answer:

The correct answer is letter "C": Mortgage payments.

Explanation:

Net Operating Income or NOI reflects income after operating expenses deducted but before income taxes and interest are deducted. If the result is a positive value it is called <em>Net Operating Income</em>. If the figure is negative, it is referred to as <em>Net Operating Loss</em>.

Net operating income is often used to calculate real estate income, such as residential properties or commercial properties. <em>NOI is calculated by determining the Gross Operating Income (Gross potential income minus vacancy and credit loss) and subtracting the operating expenses (maintenance, fees, and insurance). </em>

<em> </em>

Thus, <em>mortgage payments are not considered in the calculation of the NOI.</em>

6 0
3 years ago
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea
Montano1993 [528]

Answer:

$880.31

Explanation:

For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Assuming Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.3%

NPER = 8 years  × 2 =

PMT = $1,000 × 6.5% ÷ 2  = $32.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $880.31

5 0
3 years ago
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on
Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

(31,700-7,600)

8 0
3 years ago
The four conditions (mutual exclusion, hold and wait, no preemption and circular wait) are necessary for a resource deadlock to
Evgen [1.6K]

Explanation:

The conditions sufficient for a resource deadlock to occur is when a  deadlock will  prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

Solution

Deadlock conditions

A deadlock is a situation where two or more processes request for same critical resource at the same time.

The mutual exclusion applies a restriction to a resource when the resource is used by any process, it should become unavailable for the other resources

The hold and wait allocations explains that any process which is allocate resources must hold them; till all needed resources are nor sure.

In the meantime, if any other processes need a resource which is held by another process, then the latter will release the resource to prevent deadlock.

No pre-emption states that the operating system can grant access to resources to another process while it is in use by another process; depending on the priority , to prevent deadlock.

Circular wait should not be implemented so that resources being requested by process are allocated when they get free.

Now,

Three processes A, B, and C functions on a system, having two distinct resources R and S.

The resource  R has one instant active while resource S has two instances available.

The instance of R is allocated to a process A after request. first instance of resource S is allocated to process B, and second instance of resource S is allocated to process C.

When a request is placed by process B for resource R, then the resource is not available for execution. the process A request for resource S which is used by both C and B.

All the four conditions prevail in this situation; yet deadlock does not occur.

The resource S is released by process C and is allocated to process A. when process A finishes, it releases resources and resources R is allocate d to process B.

Hence all three processes end without a deadlock.

However, the deadlock will prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

5 0
3 years ago
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