Answer:
The trader exercises the option and loses money on the trade if the stock price is between $30 and $33 at option maturity.
Explanation:
A call option is the right to buy an asset at an agreed price on the maturity date. This agreed price is known as the strike price.
In the given scenario, the strike price is $30. The trader pays an additional $3 for the right to exercise the option, thus paying a total of $33 for the option.
Now, if the asset price on maturity date is greater than $30, the trader shall exercise the option and buy the asset. This is because the market price of the asset is greater than the price the trader pays for it, resulting in a favorable situation for the trader.
However, the trader paid a total of $33 for the stock. Hence, the trader shall lose money on the trade as long as the asset price is below $33.
Therefore, if the asset price upon maturity is between $30 and $33, the trader shall exercise the option but lose money on the trade.
Answer:
Quantity
Explanation:
A quantity discount is a dicount that occurs or that is put in place when a least certain amount of goods is ordered or purchased.
Like the question, there is a 15% discount for at least a dozen orders of Mandarin bird feeders. If the order exceeds a dozen peices, say 13 or 14 or 50 or even a 100 pieces, the discount of 15% comes into play during payment for those feeders.
Cheers.
Answer: $88,889
Explanation:
Based on the information given in the question, the cost of Human Resources that would be allocated to Cafeteria will be calculated thus:
Number of employees (Human Resources to departments)
= 20 + 100 + 150
= 270 employees
The Human Resources cost would be allocated to Cafeteria will be:
= $1,200,000 / 270 x 20
= $88,889
Answer:
Break-even price = $7
Explanation:
<em>The break-even price is the price at which the the total contribution from the sale is equal to the fixed cost of $300,000.</em>
(x- 4)× 100,000 = 300,000
100,000X - 400,000 = 300,000
100,000X = 300,000 + 400,000
x= 700,000/100,000
X = $7
Break-even price = $7
Given the data in the problem, we can calculate the cost of production for each bucket:
one bucket requires:
500 grams of plastic and one-half hour of direct labor.
The plastic costs $10.00 per 500 grams and the employees are paid $15.00 per hour.
Therefore, one bucket costs (material and labor):
$10.00 + $15.00 * (1/2 hour) = $17.50 per bucket plus (1.10 * $7.50) = $25.75
for 380 buckets :
$25.75 * 380 = $9785
This value only represents the cost of production of 380 buckets for the month of March. <span />