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sp2606 [1]
3 years ago
11

You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date when IBM stock sel

ls for $123 per share. You will realize a ______ on the investment. $300 profit $300 loss $500 loss $200 profit
Business
1 answer:
ZanzabumX [31]3 years ago
7 0

Answer:

Loss on putting for long time = $300 (Loss )

Explanation:

Given:

Strike price = $120

Stock price = $123

Premium amount = $3 per share

Realize on investment = ?

Computation of realizing on investment:

Given that strike price is lower than the stock price, So premium paid considers as a loss.

Loss on putting for long time = $3 × 100

Loss on putting for long time = $300 (Loss )

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David works for a large steel company in ohio and regularly uses his private email to communicate company secrets at home and ab
SCORPION-xisa [38]

Based on the scenario above, this is an example of treason. Treason is an act where an individual commit acts that shows that he or she is betraying his or her own country. An example of this is where an individual spill secrets of his or her own country that is private to other country in means of betraying his or her own.

8 0
3 years ago
If a firm establishes maximizing profits at the most important goal of the firm, which of the following would not be given prope
Dima020 [189]

Answer:

It is Risk (C)

Explanation:

Sales Revenue : A company with profit maximization objective will adopt every necessary strategy and marketing techniques to increase it sales revenue.

Expenses : In order to maximize profit, all discretionary expenses and costs must be kept as low as possible .

Risk : A profit-conscious company will not be mindful of risk regardless of their impact and will be ready to take higher risk. The higher the risk, the higher the return and vice-versa.

Cost of goods Sold : these represents direct costs incurred to generate revenue. Hence, in order to maximize profit, this must be kept low as well.

6 0
3 years ago
g These bonds would sell at a discount when the: Multiple Choice bond stated interest rate is above the market rate of interest.
4vir4ik [10]

Answer:

bond stated interest rate is below the market rate of interest.

Explanation:

A bond sells at a discount if its face value is below par. For example, if par value is $1000 and the price is $950, the bond is selling at a discount

A bond is selling at a discount if the bond stated interest rate is below the market rate of interest.

A bond is selling at a premium if its interest rate is above the market rate of interest.

5 0
2 years ago
Indicate for each of the following costs whether it is a product cost or a period cost.
MAVERICK [17]

Answer and Explanation:

The classification of the following cost i.e. either product cost or period cost is

1. Period cost as it deals with the operating expense

2 Product cost as it directly linked with the product

3  Product cost as it directly linked with the product

4  Product cost as it directly linked with the product

5  Product cost as it directly linked with the product

6  Product cost as it directly linked with the product

7  Product cost as it directly linked with the product

8 period cost as it does not directly linked with the product

9  Product cost as it directly linked with the product

5 0
3 years ago
A. Stockbrokers execute trades on the floor of the New York Stock Exchange on behalf of account executives. B. Stockbrokers are
Lilit [14]

Answer:

The correct answer is A. Stockbrokers execute trades on the floor of the New York Stock Exchange on behalf of account executives.

Explanation:

The main function of a stockbroker is to provide advice to other people who do not have the necessary experience to carry out operations in the different financial markets. The stockbroker stands out for having extensive knowledge in finance and fulfilling an active and important role in the stock market. You could say that the stockbroker acts as an intermediary, that is, a person who is between the broker and the investor who is interested in buying or selling.

The stockbroker guides and advises its clients in finance so that they can obtain the best possible returns. It is also responsible for managing purchases and other operations performed by its customers. Then it can be said that the work cycle of a broker begins when one of its clients buys an asset, and ends when it sells it and definitively closes the operation.

8 0
3 years ago
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