Answer:
The answer is -$5
Explanation:
A put option gives its owner/holder the right but not the obligation to sell. The holder of a put option is expecting the price of the underlying asset(stock) to drop.
The formula is:
Profit = max(0, X - St) - P
where X is the strike or exercise price
St is the market value or the spot price of the underlying asset
P is the premium
max(0, $110 - $100) - $15
10 - $15
-$5
Answer:
Dividend $82,500 (debit)
Cash $82,500 (credit)
Explanation:
Dividends are distributed to the shares outstanding at declaration date instead of authorized shares.
Dividend = 110,000 shares outstanding × $1× 0.75
= $82,500
Note : Value used is based on the par value of shares
Dividend $82,500 (debit)
Cash $82,500 (credit)
Answer:
b. are secondary markets
Explanation:
Secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.
Hence, organized securities markets are secondary markets.
Answer:
Contact the firm's large block trading desk.
Explanation:
The reason why the registered representative would contact the firm's large block trading desk is because the order is larger than what can be handled normally on the Newyork Stock Exchange (NYSE) floor. Where large order as in the above is to be sold on the stock exchange floor, such would normally be presented to the firm's large block trading desk who will now decide on how best to handle the order; hence not the duty of registered representative.
Based on past experience, the trade desk would likely hand over the order to one of ABC's stock brokers for execution because for example, Super Display Book - NYSE automated system, which is responsible for dealing NYSE listed issues, has certain limited orders they can take.
Answer: 17 months
Explanation:
The number of months it would take to cover these costs is found by:
= Total closing costs/ Saving per month
Savings per month:
= Old monthly payment - New monthly payment
= 1,020 - 949
= $71
Number of months it would take = 1,200 / 71
= 16.90
= 17 months