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Brrunno [24]
3 years ago
14

You purchased two WXO 30 call option contracts at a quoted price of $.35. What is your net gain or loss on this investment if th

e price of WXO is $33.70 on the option expiration date
Business
1 answer:
tekilochka [14]3 years ago
3 0

Answer: $670

Explanation:

Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70

Then, the price of RADM 30 call option contract will be calculated as;

= $33.7 - $30

= $3.70

The net gain on one RADM 30 call option will then be:

= $3.70 - $0.35

= $3.35.

Therefore, the net gain on 2 RADM30 call options will be:

= $3.35 × 2

= $6.70

Since there are 100 shares in a option contract, the gain will be:

= $6.70 × 100

= $670

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Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000
svp [43]

Answer:

$3,995.96

Explanation:

Cash flow summary for the project as entered in financial calculator is :

- $91,100 CF0

$30,000 CF1

$30,000 CF2

$30,000 CF3

$30,000 CF4

i/yr = 10 %

therefore,

Shift NPV gives a net present value of $3,995.96

thus,

At a discount rate of 10 percent the projects net present value is $3,995.96

5 0
3 years ago
If the stock market is semistrong-form efficient, which of the following statements would be CORRECT? a. Even if a market is sem
Aleksandr-060686 [28]

Answer:

The correct answer is letter "A": Even if a market is semi-strong-form efficient, an investor could still earn a better return than the market return if he or she had inside information.

Explanation:

The semi-strong efficiency of the market is part of the Efficiency Market Hypothesis (EMH) that states <em>changes in stock prices can be predicted as the result of all available information provided to investors</em> instead of using fundamental or technical analysis. Thus, "beating the market" could be a matter of chance and not skill.

Then, <em>investors could still beat a semi-strong-form efficient market compared to a market in which investors could obtain (somehow) insider information.</em>

5 0
3 years ago
Machinery was purchased for $85,000. Freight charges amounted to $3,500 and there was a cost of $10,000 for building a foundatio
tia_tia [17]

Answer:

b. $16,700

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($98,500 - $15,000) ÷ (5 years)

= ($83,500) ÷ (5 years)  

= $16,700

The original cost is computed below:

= Original cost  of machinery + freight charges + cost of building a foundation and  installing the machinery

= $85,000 + $3,500 + $10,000

= $98,500

In this method, the depreciation is same for all the remaining useful life

7 0
3 years ago
Suppose that Robin withdrawals $100 of cash from her checking account at Trendy Bank and uses it to buy a camera from Adam, who
kupik [55]

Answer:

The alternative including its query is presented throughout the explanation section below.

Explanation:

(a)

The strategic petroleum insufficiency should also be,

= 100-0.10\times 100

= 90

This means that the financial institution would have to start reducing its loan payments as well as currency exchange by $90.

(b)

Yes, you can significantly raise your loan deposit accounts secure manner. Early years setting throughout Serenity Bank would be increased, therefore the proportion of total reserves would indeed be $90.

The margin requirement of spending in the market hasn't started to change since the percent impact would be similar. Robin's account was whittled down by $100, as well as Adam's payment was continued to increase whilst also $100. So there's no modification throughout the monetary policy.

5 0
3 years ago
Floyd owns a chain of diners. He prefers to recruit employees from different ethnic and cultural backgrounds. When he hires new
zlopas [31]

Answer:

B) awareness training

Explanation:

In this scenario, based on all that Floyd is doing seems as though he is using awareness training on his employees. This is a training technique used to train employees on cultural and ethnic diversity as well as what is appropriate and inappropriate when dealing with different cultures. Like mentioned in the question this also encourages employees to think outside the box and question stereotypes.

8 0
3 years ago
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