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liberstina [14]
3 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:
azamat3 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

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Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast,
adelina 88 [10]

Answer:

400 pizzas

Explanation:

The complete question would be:

<em>You are going into the business of making pizzas. The following is the list of ingredients to make ONE pizza: </em>

<em>400 g flour           50 mL water </em>

<em>10 g yeast             120 g sauce </em>

<em>250 g cheese       5 g oregano </em>

<em>5 g basil </em>

<em>Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast, and 200 kg of flour. You have as much water as you need. How many pizzas can you make? </em>

You are going to have to make a couple of conversions to do this. Since everything you need is indicated in grams, we first need to convert everything you have in grams.

There are 1,000 g in 1 kg. So now we convert them all:

60 kg of sauce

60kg \times \dfrac{1,000g}{1kg} = 60,000g

100 kg of cheese

100kg \times \dfrac{1,000g}{1kg} = 100,000g

2.5 kg of basil

2.5kg \times \dfrac{1,000g}{1kg} = 2,500g

2.5 kg of oregano

2.5kg \times \dfrac{1,000g}{1kg} = 2,500g

5 kg of yeast

5kg \times \dfrac{1,000g}{1kg} = 5,000g

200 kg of flour

200kg \times \dfrac{1,000g}{1kg} = 200,000g

So now that we know what we have, we determine how many pizzas we can make with the amount of each ingredient. We get the ratio of each ingredient to one pizza to determine how many we can make:

<u>Flour:</u>

Available: 200,000g

Needed: 400g

200,000g\ of\ flour\times\dfrac{1\ pizza}{400g\ of\ flour} = 500\ pizzas

<u>Yeast:</u>

Available: 5,000g

Needed: 10g

5,000g\ of\ yeast\times\dfrac{1\ pizza}{10g\ of\ yeast} = 500\ pizzas

<u>Cheese:</u>

Available: 100,000g

Needed: 250g

100,000g\ of\ cheese\times\dfrac{1\ pizza}{250g\ of\ cheese} = 400\ pizzas

<u>Basil:</u>

Available: 2,500g

Needed: 5g

<u />2,500g\ of\ basil\times\dfrac{1\ pizza}{5g\ of\ yeast} = 500\ pizzas<u />

<u>Sauce:</u>

Available: 60,000g

Needed: 120g

<u />60,000g\ of\ sauce\times\dfrac{1\ pizza}{120g\ of\ sauce} = 500\ pizzas<u />

<u>Oregano:</u>

Available: 2,500g

Needed: 5g

<u />2,500g\ of\ oregano\times\dfrac{1\ pizza}{5g\ of\ oregano} = 500\ pizzas<u />

We do not need to consider water, because it will provide as many as we will need.

So here we see that all but one ingredient is able to yield 500 pizzas. Cheese is the only one that yields less than 500, specifically 400 only. This is your limiting ingredient and this ingredient determines how many pizzas you can make. Because when you run out of cheese, you can no longer make a pizza.

4 0
3 years ago
According to the textbook, the number one reason that people become entrepreneurs is to:A) realize financial rewardsB) gain pres
Pachacha [2.7K]

Answer:

<em>(A) realize financial rewards.</em>

Explanation:

In <em>theory (textbook)</em> the no.1 reason that people become entrepreneurs is to achieve <em>maximum return</em>. The concept of higher risk, higher return is the key here. Business as compared to Services and Profession, has the highest risk thereby giving the best returns out of the three.

However, in <em>practicality</em> people adopt business to <em>pursue their own ideas, gain prestige, be their own boss, continue a family tradition and also to realize financial rewards.  </em>

8 0
3 years ago
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate
Mice21 [21]

Answer:

The slope of the CML = (13% - 7%)/25% = 0.24

Explanation:

Given that:

expected rate of return of 17%

standard deviation of 27%.

The T-bill rate is 7%.

You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.

The slope of the CML is

Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market

The slope of the CML = (13% - 7%)/25% = 0.24

= (0.13 - 0.07) /0.25

= 0.24

8 0
3 years ago
Trio company reports the following information for the current year, which is its first year of operation
Arlecino [84]

Explanation:

1. The computation of cost per unit using a absorption costing

Fixed cost

= Fixed manufacturing overhead ÷ Units produced

= $160,000 ÷ 20,000

= $8

Variable costs

Direct material per unit $15

Direct labor per unit $16

Variable manufacturing overhead per unit

= Variable overhead ÷ Units produced

= (80,000 ÷ 20,000)

= $4

Total Variable cost per unit

= $15 + $16 + $4

= $35

Total cost per unit

= $8 + $35

= $43

The computation of cost per unit using a variable costing

Direct material per unit $15

Direct labor per unit $16

Variable manufacturing overhead per unit $4

= $15 + $16 + $4

= $35

2. The computation of ending finished goods inventory using absorption costing

Number of finished goods in units 6,000

Cost of goods in ending inventory

= 6000 × $43

= $258,000

The computation of ending finished goods inventory using variable costing

= Number of finished goods in units 6,000

Cost of goods in ending inventory

= 6,000 × $35

= $210,000

3. The computation of the cost of goods sold using absorption costing

Number of units in sold goods 14,000

Cost of goods sold

= 14,000 × $43

= $602,000

The computation of the cost of goods sold using variable costing

Number of units in sold goods 14,000

Cost of goods sold

= 14,000 × $35

= $490,000

3 0
3 years ago
The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued =  70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares =  70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and  luney has issued =  70000 shares

so here  

we know that

luney has shares outstanding  = 70000 - 7000

luney has shares outstanding 63000

7 0
3 years ago
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