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
liberstina [14]
2 years ago
8

g A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55

on the expiration date. What is the stock price at which the speculator would break even
Business
1 answer:
azamat2 years ago
8 0

Answer:

$53

Explanation:

Call option is $3

Exercise price is $50

The stock is currently priced at $49

It rises to $55 on the expiration date

Therefore the cost price at which the speculator will break even can be calculated as follows

= ($50-$3)+($55-$49)

= $47 + $6

= $53

You might be interested in
Jim is one of several general partners who own beef n beer, a small chain of restaurants located in missouri and illinois. jim i
navik [9.2K]
If Jim was able to convince other partners to go along with his idea, then it is most likely that the beef n beer will could have the ability to gain shares of ownership traded on a stock exchange, it could be same as a corporation because the corporation could provide that. For having a master limited partnership enables Jim to have publicly traded securities, as well as having benefits in terms of the tax.
5 0
3 years ago
Jumpin Corporation uses the percentminusofminussales method to estimate uncollectibles. Net credit sales for the current year am
Fudgin [204]

Answer:

The amount of Uncollectible Account Expense reported on the income statement will​ be: $ 64,800

Explanation:

Jumpin Corporation

Percent of Sales method

Net credit sales  $ 2 100  000​,

Un collectible estimated 3​%

Un collectibles Accounts = 3% of  $ 2 100,000​, = $ 63,000

Unadjusted Allowance for Un collectible Accounts  $ 1, 800 Dr.

Required Adjustment =                                 $ 64,800

The amount of Un collectible Account Expense reported on the income statement will​ be: $ 64,800

In the percent of sales method emphasis is laid on the matching principle in the income statement and amount of bad debts expense is subtracted from the accounts receivables.

5 0
3 years ago
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco
nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000  - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0
3 years ago
If a drought ruins a significant amount of the coffee crop, then we would expect the price of
NikAS [45]

If a drought ruins a significant amount of the coffee crop, it is expected that the price of the coffee will rise. It is because if there are less products or the less it produces, it causes the product to rise because the product will be of demand by the consumers.

6 0
3 years ago
What problem makes public goods necessary?
NARA [144]
There are several problems that make public goods necessary, but the primary one is that without access to certain public goods and services like parks and schools, poor people would have practically no chance at advancement. 
3 0
3 years ago
Other questions:
  • Renfroe Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. Th
    8·1 answer
  • Local companies have expressed their enthusiasm about hiring UCF graduates who are able to sustain effort and interest in long t
    14·1 answer
  • Michael is the new department head at his company. he expects everyone to agree with his restructuring plan for the department,
    10·1 answer
  • Voyager Corporation has developed the following cost formula for its maintenance cost: Y = $300 + $2X, where X = the number of d
    7·1 answer
  • Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal wo
    6·1 answer
  • The Treasury Department auctioned $21 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.965%. What wo
    8·1 answer
  • Kiosks and carts are ideal locations for
    13·2 answers
  • Dec. 1 Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid
    5·1 answer
  • BE18.12 (LO 2, 3) Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total
    12·1 answer
  • Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. Instructions: Enter your answers as whol
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!