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Fed [463]
3 years ago
13

The premium on a pound put option is $0.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of

the put, and ____ for the seller of the put. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.) Group of answer choices $1.57; $1.57 $1.63; $1.63 $1.63; $1.60 $1.63; $1.57
Business
1 answer:
Vitek1552 [10]3 years ago
5 0

Answer:

Buyer $1.57

Seller $1.57

Explanation:

Based on the information given The break-even point is $1.57 for the buyer of the put, and $1.57 for the seller of the put calculated using this formula

Break-even point=Exercise price-Premium on a pound put option

Let plug in the formula

Break-even point=$1.60 − $.03

Break-even point= $1.57

Therefore The break-even point is $1.57 for the buyer of the put, and $1.57 for the seller of the put.

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For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decima
olya-2409 [2.1K]

Answer:

Explanation:

Present Value     Years   Interest Rate   Future Value

      PV                     n                   r                  FV

1.  $10,681              10                6%            $19,128

2. $35,157              2                 11%            $43,317

3. $129,107            14                14%            $808,382

4. $65,293            19                13%            $665,816

Present value of future cash flow will be calculated by using discount formula which is as follow:

PV = FV / ( 1 + r ) ^n

1.  PV = $19,128 / ( 1 + 0.06 )^10 = $10,681

2. PV = $43,317 / ( 1 + 0.11 )^2 = $35,157

3. PV = $808,382 / ( 1 + 0.14 ) ^14 = $129,107

4. PV = $665,816 / ( 1 + 0.13 ) ^19 = $65,293

4 0
4 years ago
An important goal of a responsibility accounting framework is to help ensure which of the following?
MariettaO [177]
<h2>segment and company financial goals are congruent.</h2>

Explanation:

I think the options are missed and hence given below for your reference:

a) decision-making is made by the top executives.

b) investments made by each segment are minimized.

c) identification of operating segments that should be closed.

d) segment and company financial goals are congruent.

Let us understand the meaning:

Congruent: It means two or more things coincides when superimposed.

Financial goals: The target which needs to be achieved in the current financial year.

Segments: Segment speaks about the location, product or service provided by the company.

Financial goals are necessary so that it would be easy to organize and work towards the specific goal.

For the business goal to be achieved, every organization should frame financial targets or goals.

So the important goal is to achieve segment and company financial goals and they become congruent when achieved.

3 0
4 years ago
The main focus of the marketing concept is: a) Selling as many goods as possible b) Maximising revenue c) Meeting the needs and
Elena-2011 [213]

Answer:

C. Meeting the needs and wants of customers.

Explanation:

An organization should be able to produce products that will meet the need of the customers compare to what competitors can offer.

Before a company can produce anything, it must first of all check the need of the customers. After checking and knowing the needs, the company can then proceed to produce goods that meet and satisfy those customers need.

Although, the main reason why companies engage in business is to make profit,marketing concept helps firms to sell their products because it is an important means to achieving sales and profit.

5 0
3 years ago
A researcher wishes to measure income across different age groups of consumers. The researcher wants to ensure that every age gr
snow_tiger [21]

Answer:

Stratified random sample

Explanation:

Stratified random sample -

It is also known as quota random sampling and proportional random sampling  .

It refers to the process of sampling , where the complete data or population is distributed into smaller sub - groups , known as the strata .

The distribution of the strata is done on the basis of certain factors like age , gender , education qualification , etc. , there by making the sampling process easier .

Hence , from the given information of the question ,

The correct answer is stratified random sampling .

6 0
4 years ago
The following are the relevant data for calculating sales variances for Fortuna Co., which sells its sole product in two countri
Dvinal [7]

Answer:

$26 U

Explanation:

Calculation to determine what The sales mix variance for the two countries is

First step is to calculate the sales mix variance in Gallia

Using this formula

Sales mix variance in Gallia={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}

Let plug in the formula

Sales mix variance in Gallia= {[260 –(520 actual × .6 )] × $3 }

Sales mix variance in Gallia=$156 U

Second step is to calculate the sales mix variance in Helvetica using this formula

Sales mix variance in Helvetica={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}

Let plug in the formula

Sales mix variance in Helvetica= {[260 –(520 × .4 )] × $2.50 }

Sales mix variance in Helvetica=$130 F

Now let calculate the multiple-country sales mix variance using this formula

Sales mix variance =Sales mix variance in Gallia-

Sales mix variance in Helvetica

Let plug in the formula

Sales mix variance= ($156 U –$130 F)

Sales mix variance=$26U

Therefore The sales mix variance for the two countries is $26U

4 0
3 years ago
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