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stiv31 [10]
3 years ago
15

You purchase one IBM July 90 call contract for a premium of $4. The stock has a 2 for 1 split prior to the expiration date. You

hold the option until the expiration date when IBM stock sells for $48 per share. You will realize a ______ on the investment. A. $300 profit B. $100 loss C. $400 loss D. $200 profit
Business
1 answer:
Jet001 [13]3 years ago
3 0

Answer:

$200 profit

Explanation:

Call profit

=2 {0, [$48 - ($90/2)(100)]} - $400 = $200

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How did the extra, one-time payment of $100 affect the total interest Janet pays on the loan?
Shkiper50 [21]

Amortization simply means the practice of spreading the cost of an intangible asset over the useful life of the asset.

Your question is incomplete as you didn't provide the amortization table. Therefore, an overview of amortization will be given.

It should be noted that amortization is usually expensed on a straight-line basis. In such a case, the same amount will be expensed for every period over the life of the asset.

For example let's assume that Janet borrows $2000 at 4% for 2 years. The interest that will be paid will be:

= $2000 × 4% × 2

= $2000 × 0.04 × 2

= $160

The interest here is $160. Based on the question, since $100 has been paid, it should lead to a lower interest that will be paid on the loan.

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7 0
2 years ago
For the following, mark a "D" if the following account normally has a debit balance and mark a "C" if the following account norm
otez555 [7]

1.Notes Payable  D

2. Mortgage Payable D

3. Drawing D

4.Accounts Receivable C

5. Capital C

6. Rent Revenue C

7. Unearned Revenue C

8. Utility Expense D

9. Automobiles

Explanation:

1.Notes Payable  D

2. Mortgage Payable D

3. Drawing D

4.Accounts Receivable C

5. Capital C

6. Rent Revenue C

7. Unearned Revenue C

8. Utility Expense D

9. Automobiles

  • A debit is an accounting entry that may either increases an asset or expense account,
  • It also decreases a liability or equity account.
  • A credit is an accounting entry that may either increases a liability or equity account,
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7 0
3 years ago
Which of these emotions is not a personal benefit of work?
Vesnalui [34]
I think is A because accomplishment is not a emotional thing.
6 0
3 years ago
Read 2 more answers
Without middlemen like Travelocity, Orbitz, and other travel Web sites, a consumer would have to check all airline Web sites in
wolverine [178]

Answer: The introduction of middlemen in business models is an example of REINTERMEDIATION.

Explanation: REINTERMEDIATION can be defined as the introduction of an agent acting as a mediator between a producer and the consumer.

An example can be a bakery that sells products directly adding retailer to help in the sale of their products. Which is also the case in the question whereby the travel websites are the intermediary between the airlines and the customers.

4 0
3 years ago
Determine what punctuation rule is illustrated by the following sentence. I have never met someone who does his job so well; he
damaskus [11]

Punctuation rule is illustrated by the sentence, Use a semicolon to join closely related independent clauses.

1. Parallelism Is Required for All Punctuation

This means that whenever a comma or a dash is used to break up a main clause, the same punctuation marks must be used both at the beginning and the end of the clause. It further implies that you cannot use a semicolon to distinguish between a single item in a list.

2. Every Clause Needs a Colon at the End

The main clause needs to end with a colon. A colon can be used to introduce a list, elaborate, or restate a sentence if it is already complete.

3. Semicolons Are Used to Emphasize Equally

In a compound sentence, a semicolon can be used in place of a coordinating conjunction to link two related independent clauses.

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5 0
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