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mr Goodwill [35]
3 years ago
6

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock pri

ce at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)
Business
1 answer:
horsena [70]3 years ago
8 0

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

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Banks create cash by using lending extra reserves to buyers and businesses. This, in turn, finally provides greater to money in circulation as dollars are deposited and loaned again.

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<h3>How do commercial banks create money?</h3>

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3 0
2 years ago
The Network Time Protocol service can be used to synchronize computer clocks. Explain why, even with this service, no guaranteed
quester [9]

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channel, then the difference between the client’s clock and the value supplied by the network tiime protocol service would also be

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4 0
3 years ago
A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides t
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It will result in an increase in average inventory as larger batches require more time to be completed.

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3 0
2 years ago
On December 31, 2018, a company had assets of $29 billion and stockholders' equity of $22 billion. That same company had assets
Kisachek [45]

Answer:

0.69

Explanation:

From the question above on December 31, 2018 a company has an assets of $29 billion and stockholders equity of $22 billion.

On December 31, 2019 the same company recorded an assets of $55billion and stockholders equity of $17billion

Inorder to calculate the debt-to-assess ratio the first step is to find the amount of liabilities

Liabilities= Assets-Stockholders equity

Assets= $55 billion

Stockholders equity= $17 billion

= $55billion-$17billion

= $38 billion

Therefore, the debt-to-assets ratio can be calculated as follows

Debt-to-assets ratio= Total liabilities/Total Assets

= $38 billion/ $55 billion

= 0.69

Hence on December 31, 3019 the debt-to-assets ratio is 0.69

5 0
4 years ago
On January 2, 20X1, Cole Co. signed an eight-year noncancelable lease for a new machine, requiring $15,000 annual payments at th
zvonat [6]

Answer:

Cole should record amortization expense for the leased machine at $9,000.

Explanation:

Machine cost would be recorded in book at = present value of Aggregate lease payments

Machine cost would be recorded in book at = $108,000

Depreciation (amortization) expense for the leased machine in first year= (Machine cost - salvage value)/Useful life

Depreciation (amortization) expense for the leased machine in  first year= ($108,000 - 0)/12

Depreciation (amortization) expense for the leased machine in  first year= $ 9,000

Therefore, Cole should record amortization expense for the leased machine at $9,000.

7 0
3 years ago
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