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
svetlana [45]
3 years ago
7

The following price quotations are for exchange-listed options on Primo Corporation common stock. Company Strike Expiration Call

Put Primo 61.12 55 Feb 7.25 0.48 With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100 shares.
Business
1 answer:
Varvara68 [4.7K]3 years ago
6 0

Answer: $725

Explanation:

One call option is valued at $7.25.

We are to find the value of a Call Option contract which is assumed to have a 100 shares in it.

If therefore, 1 call option is $7.25, then 100 call options is,

= 7.25 * 100

= $725

A buyer would have to pay $725 for one call option contract.

If you need any clarification do react or comment.

You might be interested in
How is the workplace changing and why is it important to understand work place trends
VladimirAG [237]
Its even less employee friendly tHan it was under
the professional managers...the new ruling classis using law and politics to take the workers for an unpleasant ride
7 0
3 years ago
​The extent to which an individual identifies with an organization and commits to its goals is called:
aliya0001 [1]

The extent to which an individual identifies with an organization and commits to its goals is called organizational committment.  When a individual is committed and attached to an organization they will committ to the organization and continue to base their behavior and understanding with the company.

4 0
3 years ago
ngus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 99​%, and reserves
stira [4]

Answer:

312.5 million

-3.68 million

11040

Explanation:

The amount of deposits is ​ ​$312.5 million

The reserve shortage created by deposit outflow of 4 million is - ​$3.68 million

The cost of the reserve shortage if Angus Bank borrows in the federal funds market is (federal funds rate is 0.3%) is  ​$11040

7 0
3 years ago
Grace called a team meeting at her company to go over the results of her marketing research. Before walking through the results,
bearhunter [10]

Answer:

sorry,I don't know the correct answer

5 0
3 years ago
Read 2 more answers
Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi
irina1246 [14]

Answer:

Yes, it will affect it.

Explanation:

The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct  certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.

The three criteria or tiers that determines how much to deduct as DRD are as follows:

1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.

2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.

3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.

Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.

4 0
3 years ago
Other questions:
  • What type of report must accompany claims when an unusual, new, seldom used, or category i unlisted code or category iii code is
    8·1 answer
  • The following information was available for the year ended December 31, 2013: Sales $ 520,000 Dividends per share $ 1.36 Net inc
    6·1 answer
  • What happens if you don't pay your car insurance premium for your vehicle?
    12·2 answers
  • Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Colu
    6·1 answer
  • Cost Flow Relationships
    10·1 answer
  • On its current year income​ statement, Vegas​ Parties, Inc. reported sales revenue of​ $945,000. Changes occurred in several bal
    6·1 answer
  • The conversion rate is restated for all stock dividends and splits. Coffee had the following stock transactions in 2005 and 2006
    8·1 answer
  • The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass
    14·1 answer
  • What is most important to convey in the employment section of your résumé?.
    14·1 answer
  • What is credit answer?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!