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pashok25 [27]
2 years ago
10

A call option on Barry Enterprises stock has a market price of $12. The stock sells for $23 a share, and the option has an exerc

ise price of $17.50. What is the exercise value of the option
Business
1 answer:
tresset_1 [31]2 years ago
7 0

Answer:

the exercise value of the option is $5.50

Explanation:

The computation of the exercise value of the option is given below:

= Sale value of the stock - exercise price of the option

= $23 - $17.50

= $5.50

Hence, the exercise value of the option is $5.50

Simply we deduct the exercise price of the option from the sale value of the option

And, the same should be considered

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Three important forms of long-term (capital) expenditures are
Anna35 [415]

Answer:

Explanation:

Expenditure made to reduce costs; Expenditure made to increase revenue; Expenditure which is justified on non-economic grounds.

6 0
3 years ago
If actual sales totaled $450,000 for the current year (30,000 units at $15 each) and planned sales were $540,000 (45,000 units a
torisob [31]

Answer:

Option B, $45,000, is the right answer.

Explanation:

Given actual sales = $450000

Actual units that is sold = 30000 units

Actual selling price = $15 per unit

Planned sales = $540000

Planned units = 45000

Planned selling price = $12 per units.

The difference between actual and planned sales due to unit price factor = change in units × change in price

= (45000 – 30000) × (15 – 12)

= $45000

Thus option B is correct.

4 0
3 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
When might be the best time to start saving for retirement?
maks197457 [2]
When your in your late 20s early 30s 
5 0
3 years ago
Read 2 more answers
An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e
Lina20 [59]

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price -  Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

6 0
3 years ago
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