Answer:
The solution of the given query is provided below in the explanation segment.
Explanation:
(a)
The diagram according to the given query is attached below.
(b)
Given:
Investor sells,
= 200 shares
at,
= $5.25
Strike price,
= $5
Premium,
= $0.50
If the price is less than $5 is $.75 per share,
The investor's gain will be:
=
= ($)
(c)
The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.
Answer:
16 weeks
Explanation:
Given:
Amount saved each week in the first 5 weeks = $25
Amount saved each week in the next 7 weeks = $25 + $20 = $45
Amount saved each week afterwards = $25
Total amount to be saved = $540
Now,
The total amount saved in the first 5 weeks = $25 × 5 = $125
The total saved in the next 7 weeks = $45 × 7 = $315
Thus,
The total amount saved till now = $125 + $215 = $440
Now,
The remaining amount to be saved = $540 - $440 = $100
The time required to save the $100 =
= 4
Hence,.
the total weeks required = 5 + 7 + 4 = 16 weeks
Answer:
a. $81,900.
Explanation:
The contribution margin per unit is obtained by dividing the total contribution margin by the 24,000 units produced.
The expected operating income is given by the contribution margin minus the fixed costs. For 29,000 units sold, the operating income is:
The answer is a. $81,900.