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nlexa [21]
2 years ago
13

Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock

with a strike price of $52 per share and an option price of $0.60 per share. The option expires today when the value of the stock is $42.70 per share. What is your net profit or loss on this investment
Business
1 answer:
oee [108]2 years ago
7 0

Answer:

$4,350

Explanation:

Calculation to determine your net profit or loss on this investment

Net profit = (-$0.60 - $42.70 + $52) × 100 × 5

Net profit= $4,350

Therefore your net profit or loss on this investment is $4,350

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Rico bought 100 shares of Banana Republic stock for $24.00 per share on January 1, 2010. He received a dividend of $2.00 per sha
dimaraw [331]

Answer:

12.5%

Explanation:

We have to first calculate Rico's gain per share during the 2010-2012 period:

Rico's gain = -initial purchase price + dividend 1 + dividend 2 + dividend 3 + sales price

Rico's gain = -$24 + $2 + $3 + $4 + $18 = $3

$3 represents a 12.5% [= ($3 / $24) x 100] rate of return for the holding period.

B. 12.5%

Rico bought 100 shares of Banana Republic stock for $24.00 per share on January 1, 2010. He received a dividend of $2.00 per share at the end of 2010 and $3.00 per share at the end of 2011. At the end of 2012, Rico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Rico's realized holding period return? (Pick the closest answer.)

7 0
3 years ago
Read 2 more answers
parking lot charges $5.00 for the first two hours of parking and $0.75 for each additional half hour or part thereof. Of Sam par
disa [49]

Answer:

$14.50

Explanation:

Given;

Charge for first 2 hours = $5.00 and

$0.75 for each additional half hour or part thereof.

If he parks his car for 8 hours, then the first 2 hours will be charged at a rate of $5.00

Time left to charge is 6 hours. This will be charged at a rate of $0.75

Therefore cost to Sam for parking his car for 8 hours

= (2 × $5) + (6 × $0.75)

= $10 + $4.50

= $14.50

Sam paid $14.50 for parking.

7 0
3 years ago
Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan,
aliina [53]

Answer:

Follows are the solution to the given points:

Explanation:

For question 1:

Exp on the Debit Salary = $ 1,500,000

Credit payable Income tax = $375,000

Credit accounts payable (pension plan)= $63,000

Credit  payable tax on FICA= $114,750

Credit  payable salary (Balance) $947,250

For question 2:

Exp = $100,500 for Debit Wages

Cr.=   $31,500 (Surgical Insurance) Payable accounts

Cr. =  $6,000 in insurance accounts payable

Cr. = $63,000  Payable Accounts (Pension plan) 

For question 3:

EXP= $207,750  for Debit Payroll Tax

Cr. =  $114,750 for FICA payable tax

Cr.  =$93000 for Federal and State (Unemployment tax)

FICA TAX = \$1500,000 \times  \frac{(6.2+1.45)}{100} = \$ 114,750\\

Tax on state or federal unemployment =\$ 1500,000 \times  6.2 \% = \$ 93,000\\

5 0
3 years ago
An oligopoly firm is similar to a monopolistically competitive firm in that both firms face the prisoner's dilemma. both firms a
DerKrebs [107]
An oligopoly firm is similar to a monopolistically competitive firm in that BOTH FIRMS HAVE MARKET POWER.
Market power refers to the ability of a company to increase and maintain price above the level that would prevail under competition. When market power is exercised, it usually leads to reduced output and loss of economic welfare. 
8 0
3 years ago
Ben and carla covington plan to buy a condominium. they will obtain a $220,000, 30-year mortgage at 5 percent. their annual prop
shtirl [24]

Answer: The total using monthly housing payment is 1371.01.

The monthly payment on a house usually comprises of four parts - principal, interest, taxes and insurance. Even though taxes and insurance are due only once a year, most home loan lenders require that these amounts be deposited in an escrow account . They then transfer the amounts to the respective agency when the amounts fall due. So, the value of monthly payment is:        

Monthly Housing Payment = Principal + Interest + Taxes + insurance

We need to calculate the EMI on the housing loan. This will cover the monthly payment on principal and interest

EMI = \frac{PV}{\frac{1-(1+r)^{-n}}{r}}

EMI = \frac{220000}{\frac{1-(1+\frac{0.05}{12})^{-30*12}}{\frac{0.05}{12}}}

EMI = \frac{220000}{\frac{1 - 0.22382659564135}{0.0042}}

EMI = \frac{220000}{186.28}

EMI = 1181.01

Next we calculate the monthly property taxes and insurance

Monthly property taxes       \frac{1800}{12} = 150

Property insurance             \frac{480}{12} = 40

Hence the total housing payment is : 1181.01 + 150 +40 = 1371.01

3 0
3 years ago
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