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
Mkey [24]
3 years ago
12

Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, th

e stock is selling for $39 per share, what are your put options worth? What's your net profit?
Business
1 answer:
andriy [413]3 years ago
7 0

Answer:

3000

1500

Explanation:

For each of the answers in this question I have added the formulas to solve them in the attachment below

1.

(45-39)*5*100

= 3000

2.

(45-39)-3 x5 x100

= $1500

You might be interested in
Middlefield Motors is evaluating project A, which would require the purchase of a piece of equipment for 393,000 dollars. During
Firdavs [7]

Answer:

0.2273

Explanation:

The computation of the tax rate expected to be in year 1 is shown below:-

Depreciation = Operating cash flow - Net income - Interest

= $73,000 - $17,000 - $23,580

= $32,420

Earning before interest and tax = Revenue - Cost - Depreciation

= $157,000 - $79,000 - $32,420 -

= $45,580

Earning before tax = Earning before interest and tax - Interest

= $45,580 - $23,580

= $22,000

Tax rate = Earning before tax - Net income

= $22,000 - $17,000

= $5,000

Tax rate = Tax ÷ EBT

= $5,000 ÷ $22,000

= 0.2273

3 0
3 years ago
The idea that "the invisible hand" of competition sets prices and determines quantities produced in a market economy was the pri
sp2606 [1]
The idea that "the invisible hand" of competition sets prices and determines quantities produced in a market economy was the principal idea of B.) ADAM SMITH.

Invisible hand is said to be the metaphor Adam Smith used in referring to unintended social benefits that resulted from individual's actions.
3 0
3 years ago
Read 2 more answers
The contribution margin ratio is:_______.
cupoosta [38]

Answer:

a. contribution margin divided by sales

Explanation:

The contribution margin ratio is the relationship between contribution and sales. The contribution margin ratio is determined by dividing contribution with the sales amount.

5 0
2 years ago
One of the disadvantages of divisional structure design is that they divide _________, ____________, and knowledge. They insulat
ElenaW [278]

Answer:

C) people, resources

Explanation:

A division structure splits the organization into several semi-autonomous units called divisions.  Divisions are created around business activities such as their products, services, markets, or geographical locations. Each division manages its day to day operations but reports to a central authority.

In the division structure, employees are attached to a division based on their suitability.  The division structure is suitable for large organizations with multiple products and multinationals. The structure is expensive to operate and has the possibility of role duplication. The divisions control their resources, and the employees hardly meet.

8 0
3 years ago
Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 9% sales t
IrinaVladis [17]

Answer:

1. Dr Cash $17,440

Cr Sales $16,000

Cr Sales Taxes Payable $1,440

2. Dr Cost of Goods Sold $11,200

Cr Merchandise Inventory $11,200

3. Dr Sales Taxes Payable $1,440

Cr Cash $1,440

Explanation:

1. Preparation of the journal entry to Record the cash sale and 9% sales tax

Dr Cash $17,440

(16,000 + 1,440)

Cr Sales $16,000

Cr Sales Taxes Payable $1,440

(16,000 x 9%)

2. Preparation of the journal entry to Record the cost of September 30th sales

Dr Cost of Goods Sold $11,200

Cr Merchandise Inventory $11,200

3. Preparation of the journal entry to Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15

Dr Sales Taxes Payable $1,440

Cr Cash $1,440

(16,000 x 9%)

7 0
3 years ago
Other questions:
  • Soccer players are expected to congratulate and shake hands with the opposing team, even when their team loses the game and they
    6·1 answer
  • He idea underlying maslow's hierarchy of needs is that the needs at the top of the pyramid must be satisfied before one can conc
    5·1 answer
  • Brenda has been offered choices when selecting her benefits. She knows she wants health insurance, is unsure of vision insurance
    14·1 answer
  • How gross profit or loss is computed​
    15·1 answer
  • Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the c
    11·1 answer
  • The nurse is assessing a patient's functional ability. which activities most closely match the definition of functional ability?
    6·1 answer
  • The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on Ju
    11·1 answer
  • A subsidy that is used to internalize a positive externality will ideally cause the demand curve to shift __________ to the ____
    9·1 answer
  • Anyone wants my number for 84 points
    12·1 answer
  • kelsie blames steve for all her shortcomings at work even though he is the hardest working member on the team. in the context of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!