1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I
Valentin [98]

Answer:

A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

3 0
3 years ago
A characteristic found only in oligopolies is products that are slightly different. interdependence of firms. break even level o
Delvig [45]

Answer:

The correct answer is the interdependence of firms.  

Explanation:

An oligopoly market is a market structure where there are a few firms. these firms are interdependent. Price and output decisions of a firm affect its rivals. An oligopoly firm faces a downward-sloping demand curve.  

In other market structures like monopolistic or perfect competition, the firms are not interdependent.

7 0
3 years ago
Tranquility Company manufactures ceiling fans and uses an activityminusbased costing system. Each ceiling fan has 20 separate pa
UkoKoshka [18]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Each ceiling fan has 20 separate parts.

The direct materials cost is $ 85

Each ceiling fan requires 3 hours of machine time to manufacture.

Activity (Allocation Base) -  Predetermined Overhead Allocation Rate

Materials handling (Number of parts) - ​$0.04

Machining (Machine hours) -  $7.8

Assembling (Number of parts) -  $0.35

Packaging (Number of finished units) - $3

Total unitary cost= direct material + allocated overhead

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Total unitary cost= 85 + (0.04*20 + 7.8*3 + 0.35*20 + 3*1)= $119.2

6 0
3 years ago
Explain two factors have affected the organisation of the businesses functional activities
Romashka [77]

Answer:

The two factors that affect the organization of businesses functional activities are ;

Strategy

Technology

Environment

Explanation:

Strategy determines the approach or the course of action to direct the activities of the organization of businesses. Strategy is the innovation room where new approach to solving a problem is discovered and implemented.

Technology; the technology for manufacturing goods and services affect the organization of business functional activities.

4 0
3 years ago
Bridgitte and Carlotta have started a business together; Carlotta put up half the money, but she is not involved in the manageme
Fittoniya [83]

Answer:

Limited partnership.

Explanation:

Limited partnership is a business that is set up by people who want to run a partnership together but where one or more of the partner is only interested in investing in the partnership without the desire to be involved in the day to day running as well as the right to take decision concerning the partnership, such an arrangement is called Limited partnership. The liability of the Limited partner is limited to the amount of capital contributed.

The other type of partner is general partner who is involved in the day to day running of the firm and has unlimited liability for the debt of the partnership.,

5 0
3 years ago
Other questions:
  • A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit
    6·1 answer
  • Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million o
    6·1 answer
  • Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January 1, 2021. The note requires monthly in
    7·1 answer
  • The Baldwin Company currently has the following balances on their balance sheet:
    11·1 answer
  • The balance sheet shows the following accounts and amounts Inventory. $84,000, Long-term Debt 125.000; Common Stock $60,000; Acc
    6·1 answer
  • an invesment adviser i slooking to offer advisory services to new clients. which statement is true regarding delivery of form ad
    12·1 answer
  • You are the managing director for a new product you are trying to launch. you just found out which network is going to be airing
    13·1 answer
  • Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe. R
    8·1 answer
  • You have $2,000 today in your savings account. How long must you wait for your savings to be worth $4,500 if you are earning 1.2
    10·1 answer
  • How does the price range affect the elasticity of demand for a product?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!