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nikitadnepr [17]
3 years ago
14

You bought four put options (each on 100 shares) on EZ stock with an exercise price of $35 per share and an option price of $1.3

5 per share. Today, the contracts expire and the stock is selling for $36.25 a share. What is your net profit or loss on this investment? Ignore commissions and taxes. Round the answer to the nearest dollar. Enter as positive if a profit; enter as negative if a loss.
Business
1 answer:
Stella [2.4K]3 years ago
4 0

Answer:

-$ 540

Explanation:

Put Option - provides right to sell share at exercise price on expiry.

As it is an Right not Obligation, Thus, buyer will exercise the right only if he is gaining at expiry and he will gain only if exercise price is higher than spot price at expiry

In this case Exercise Price ($ 35) is lower than the spot price ( $ 36.25) at expiry. Thus he will not execrise the option.

He will lose all what he spend in buying option that is $ 1.35 per share

Thus,

Net profit or loss on this investment = 4 Options * 100 Shares each * Loss of $ 1.35 per Share

Net profit or loss on this investment = 4 * 100 * (-1.35)

Net profit or loss on this investment = -$ 540

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At a price of $200, a cell phone company manufactures 100000 phones. At a price of $300, the company produces 300000 phones. Wha
valkas [14]

Answer:

2.5

Explanation:

P1=$200

P2=$300

S1=100000

S2=300000

The percentage change in price is:

\Delta P =\frac{300-200}{\frac{200+300}{2}}=0.4=40\%

The percentage change in supply is:

\Delta S =\frac{300000-100000}{\frac{100000+300000}{2}}=1=100\%

The price elasticity of supply is given by:

E=\frac{\Delta S}{\Delta P}=\frac{100\%}{40\%}=2.5

The price elasticity of supply is 2.5.

4 0
3 years ago
Kendra and Amelia operate an art gallery, owned as a partnership. Kendra disappeared. A few days later, Amelia learned that Kend
Jobisdone [24]

Answer:

Yes, Amelia responsible for the $75,000

Explanation:

It is given that Kendra and Amelia are jointly operating the art gallery, they are working together as a partnership. If a person does any work in the partnership business, other has full responsibility for partnership.

In the given question Kendra Has embezzled a $75,000 government grant, which will be responsible for partnership business but in the absence of Kendra, Amelia will also be responsible for all this.

6 0
3 years ago
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping costs totaled $30,000. Foundat
Yakvenalex [24]

Answer:

d. $489,500

Explanation:

The capitalized cost will include all the costs incurred by Holiday laboratories to readily make the asset for use.

Therefore,

Capitalized cost = High speed industrial centrifuge + Shipping cost + Foundation cost + Equipment cost + Labor and testing cost + Material cost

= $440,000 + $30,000 + $8,600 + $3,000 + $5,300 + $2,600

= $489,500

7 0
3 years ago
Using the same amount of time and resources, Tomer can either write 100100100 lines of code or process 202020 reports, and Charl
Sindrei [870]

Answer:

Charlotte  should focus more in  writing lines of  code as an advantage while Tomer should focus more in reports.

Explanation:

<em>The two agent should concentrate in what  they tend to produce, and that they should take a good advantage of it.</em>

<em>Charlotte has a advantage that is related in writing code lines and Tomer has a have a  good advantage in report writing</em>

6 0
3 years ago
On February 1, you bought 100 shares of stock in the Francesca Corporation for $42 a share and a year later you sold it for $46
Luden [163]

Answer:

12.381%

Explanation:

For computing HPY and HPR, the formula is same which is given below:

The formula to compute the HPY is shown below

= Dividend income + (Selling price - purchase price) ÷ purchase price

= ($1.20 + $46 per share - $42 per share) ÷ $42 per share

= ($1.20 + $4 per share)  ÷ $42 per share)

= $5.20 per share ÷ $42 per share

= 12.381%

6 0
3 years ago
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