Answer:
Strike price of October gold future = $1,200 per ounce
The exercise price = $1,180
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<em>To calculate the amount that will help the investor to decide about the position</em>
Amount added to margin = (Strike price - Future price) * Delivery if each contract
Amount added to margin = ($1,200 - $1,180) * 100
Amount added to margin = $20 * 100
Amount added to margin = $2,000
Therefore, the amount of $2,000 is received. The investor has short position on future contracts to sell 100 ounces of gold in October.
Answer:
The correct option is <u>b. irrelevant cost</u>.
Explanation:
An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.
Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.
Therefore, the correct option is <u>b. irrelevant cost</u>.
Answer: E. All of the above
I hope that this helps you !
Hello there!
The measure of how quickly an investment can be converted into cash is known as Liquid.
Answer:
Most likely d and b
Explanation:
d is the best production so it should be in one of the answers and it is only with b so therfor it should be with d and b
