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3 years ago

ABC Corporation's stock is trading at $35. A client has purchased a 50 call. The option's current value is made up of

Business

1 answer:

grin007 [14]3 years ago

3 0

Answer: intrinsic value only.

Explanation:

Intrinsic value is the expected or measured value determined by fundamental analysis of a business, stock, currency or commodity. In this case the intrinsic value is 50 call.

Tangible and intangible variables are included. The true value is often referred to as intrinsic value which may or may not be the same as the current market value.

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Answer: False

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Question 1

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1. An example of bartering is Sarah trades her apple for Ava's bag of chips.

2. Gold has historically functioned as money because it is a medium of exchange.

3. In the hypothetical economy, rice is said to be a commodity money.

4. When Pudding cups serve as a unit of account, it means that the price of other lunch items is expressed in quantities of pudding cups.

5. The difference between the U.S. dollar, and a U.S. gold certificate is a U.S. dollar does not have value in addition to its value as money.

Trade by barter is when people exchange goods with goods. Money is not used in a trade by barter. Trade by barter was used before the invention of money. For example, a trade by barter occurs when Sarah trades her apple for Ava's bag of chips.

Commodity money is money for which its value comes from the commodity from which it is made.

Fiat money is currency whose value is not backed up by any asset. Representative money is money whose value is backed up an asset.

Money can be described as something that is accepted as a means of payments for products.

Functions of money

1. Medium of exchange: money serves as a medium of exchange when it is accepted as payment for goods and services. For example, 2 ounces of gold is accepted as means of payment for a dress.

2. Unit of account: money can be used to determine the value goods and services, For example, 2 cups of puddings is equivalent to plate of fruits.

3. Store of value: money can retain its value over the long term, this it can be used as a store of value.

To learn more about money, please check: brainly.com/question/14816216?referrer=searchResults

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