Answer:
Explanation:
At $0.86
$0.86<$0.89
The buyer of the call option will not exercise the option. Net profit will be equal to the premium paid per unit = $0.02/unit.
At $0.87
$0.87<$0.89
The buyer of the call option will still not exercise the option. Therefore, net profit will be equal to the premium paid per unit = $0.02 unit. So net profit = $0.02/unit
At $0.88
$0.88<$0.89
The buyer of the call option will still not exercise the option. Net profit will be equal to the premium paid per unit = $0.02 unit. So net profit = $0.02/unit
At $0.89
$0.89=$0.89
The buyer of the call option will still not exercise the option. Net profit will be equal to the premium paid per unit = $0.02/unit.
At $0.91
The buyer will exercise the option and the net loss to Bulldog Inc will be 0.02/unit ($0.91-$0.89)
So there is no profit and no loss because this is offset by the call premium
Profit = -0.02 (loss on exercise) + 0.02 (call premium) = $0/unit
At $0.92
The buyer will exercise the option. The net loss to Bulldog Inc will be $0.03/unit ($0.92-$0.89)
Loss= -0.03 (loss on exercise) + 0.02 (call premium) = -$0.01/unit
Answer and Explanation:
The computation of the income before tax in the year 2022 would be reduced or decreased by the cash discount amount i.e. shown below:
= Sale value × discount rate × number of units sold
= $40,000 × 1% × 14 units
= $5,600
Hence, the amount is $5,600
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Leadership is a way of leading others towards a certain goal. The one in charge of the leading or steering the mantle of leadership is known as a leader.
<h3>Characteristics of Transformational leadership</h3>
Transformational leadership helps followers to transcend their own self-interests for the good of the group.
There are types of leaders in every context. There are good and bad leaders. A transfirmational leader helps followers to achieve their personal interests.
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