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alina1380 [7]
4 years ago
12

You purchased six TJH call option contracts with a strike price of $40 when the option was quoted at $1.30. The option expires t

oday when the value of TJH stock is $41.90. Ignoring trading costs and taxes, what is your total profit or loss on your investm
Business
1 answer:
jek_recluse [69]4 years ago
5 0

Answer:

Profit = $0.60

Explanation:

Call option is an option to buy by paying a call premium. The option is exercised when current market price is more than the strike price. In this case, the strike price is $40 and the premium is $1.30, whereas the current market price is $41.90. The option buyer can exercise the contract by purchase the stock at lower price and sell at current market price to gain return. The gain will be calculated as:

Value = Current Price - Strike Price

Value = 41.90 - 40

Value = 1.90

To calculate the profit, we needs to subtract premium cost from value:

Profit = Value - Call Premium

Profit = 1.90 - 1.30

Profit = $0.60

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Which of the following is TRUE regarding investment intermediaries? Group of answer choices Insurance companies can be both "buy
pogonyaev

Answer:

A diversified portfolio of securities offers lower risk than a portfolio with investments that are concentrated in a few stocks or industries TRUE, A DIVERSIFIED PORTFOLIO WILL REDUCE RISK THROUGH DIVERSIFICATION, WHILE CONCENTRATION OF A FEW STOCKS INCREASES RISK.  

the other statements are false:

  • Insurance companies can be both "buy side" and "sell side" institutions. FALSE
  • Investment banks fund their assets primarily by selling shares FALSE
  • Commercial banks intermediate between Investors and Markets FALSE
  • Investment banks have higher assets under management than Mutual Funds FALSE

7 0
4 years ago
What is the name for the practice whereby a married woman loses all of her political and economic rights to her husband?.
Nadya [2.5K]

<u>Coverture</u> is the name for the practice whereby a married woman loses all of her political and economic rights to her husband. Hence, the correct answer is coverture. Read below about coverture.

<h3>What is coverture?</h3>

Coverture was a legal doctrine in the English common law in which a married woman's legal existence was considered to be merged with that of her husband, so that she had no independent legal existence of her own.

Therefore, the correct answer is as given above

learn more about coverture: brainly.com/question/7413269

#SPJ1

5 0
2 years ago
Mayree is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selec
Mila [183]

Answer:

Inventory turnover

Explanation:

From the question we are informed Mayree who is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selecting hard-to-find books and magazines that her clientele enjoy. Recently, Mayree is experiencing a cash flow shortage, and she is concerned that she may be purchasing too many copies of each title. Having recently completed a business class, I can suggest to Mayree that she calculate the Inventory turnover ratio for her store, and then compare it to other stores in her industry. Inventory turnover can be regarded as rate at which particular company make sales of it's stock of goods and make replacement of its stock of goods during a particular period.

The inventory turnover ratio can be regarded as formula which is cost of goods that is been sold divided by average inventory within the same period.

Mathematically,

inventory turnover=[Net sales/ Average inventory at particular selling price]

3 0
3 years ago
Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $90,10
lapo4ka [179]

Answer:

b. $127,200

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the total fixed cost of the corporation not traceable to the individual divisions

= $168,500 + $48,800 - $90,100

= $127,200

3 0
3 years ago
During a recession, a number of workers have their hours reduced by their employers. All else the same, the unemployment rate wi
devlian [24]

Incomplete question. I answered from a general economic standpoint.

Answer:

<u>stay the same; decrease</u>

Explanation:

<em>Remember</em>, in this scenario, it wasn't as though the mentioned workers lost their jobs, they only had their hours reduced by their employers; so they are not <u>unemployed</u>. This, therefore, implies that the unemployment rate will stay the same.

The labor force participation rate in simple words refers to the percentage of those who are currently employed or looking for a job within an economy. If the working hours are reduced, it may diminish the zeal among the workforce of an economy to work or find work because <u>they may perceive they''ll earn less.</u>

6 0
3 years ago
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