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Arisa [49]
2 years ago
14

Rosa purchased three call option contracts on ABC stock with a strike price of $27 when the option premium was quoted at $1.1. T

he option expires today when ABC stock price is $29 at the market. She pays $10 as trading costs in total. What is the net profit on this investment?
Business
1 answer:
IrinaK [193]2 years ago
8 0

Answer:

Explanation:

Profit on a long call option = max(St - X, 0) - premium paid  

Profit on a long call option = max(29 - 27, 0) - 1.1

Profit on a long call option = max(2, 0) - 1.1

Profit on a long call option = 2 - 1.1

Profit on a long call option = 0.9 per share

Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts  = 0.9 * 100 * 3  = $270

Net profit on this investment = 270 - 10

Net profit on this investment = $260

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Daniel’s workplace does not have any structured hierarchy and all employees are treated equally, regardless of their designation
Alexxandr [17]

Answer:

Collectivism

Explanation:

The collectivism refers to the group who worked as a team and given the priority according to their roles, designations.

As we use the concept synergy that 1 + 1 give 11 i.e means due to efforts of group we can accomplish the company target as compare to the individual effort.

Since in the given question, the Daniel workplace does not have any  structured hierarchy and all employees are treated equally so in this case, the collectivism is low in this organization.

4 0
2 years ago
Ethan is planning for his retirement. He has narrowed it down to two investment options. The first is an IRA where monthly payme
-BARSIC- [3]

Answer:Accept Option B

Explanation: The concept of Future Value helps to to critically analyze investment opportunities so you can make decisions among options amd most importantly pick the project that yields the highest return.

The Future value of project A after discounting is $881.4 and for project B is $10,487.8

This is because of the difference in the amount invested.

The difference in return is $10,487.8-$881.4 = $9,606.4

7 0
2 years ago
The following data are for a series of increasingly extensive flood control projects:
igomit [66]

Answer:

b. $28,000 and $12,000 respectively

Explanation:

The marginal cost and marginal revenue refers to the additional cost or revenue that is generated for adding an additional unit or increasing the ouput by one unit,

In thi case, moving to Large reservoir from Medium reservoir

Marginal cost: 72,000 - 44,000 = 28,000

<em>It cost 28,000 to move to a large reservoir</em>

Marginal revenue :64,000 - 52,000 = 12,000

<em>It generates additional benefit for 12,000</em>

8 0
2 years ago
Petrini Corporation makes one product and it provided the following information to help 20) prepare the master budget for the ne
Vitek1552 [10]

Answer:

C) $1,166,000

Explanation:

The sales budgeted will be

unit sales budgeted x unit sales price

we look into the assignment for these numbers:

  • February sales 10,600 units
  • unit sales price $110

And calcualte: 10,6000 units x $110 sales price

Total sales revenue for the month of February 1,166,000

The rest of the data is irrelevant for the question we are given thus, we ignore it.

5 0
2 years ago
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each cont
marishachu [46]

Answer:

<em>2.statute.</em>

Explanation:

<em>The court ruling will be decided by the contractual agreement signed by the three parties. A Limited Liability Agreement will usually be demonstrated by three parties signing a contract together. </em>

The situation will become difficult once, within each partner, there is no written statement about the distribution of profit. Every partner must obtain the suitable yield rate, based on their original investment.

The verdict begins to appear as if it falls into the hands of the state. By considering the Revised Uniform Partnership Act-Section 306. It relies heavily on where the business is registered, authorized, type of business.

However, John is the majority shareholder with 60 per cent of financial and legal accountability[ which is why he owes more to investment return]. It is also partly due to unlawful double tax laws and they are intended to protect the owner / partner of the business.

The confusion could've been avoided if an attorney and bookkeeper were available to describe the process, before the agreement was made and/or written. The condition they submit for incorporation makes a huge difference however, it does not seem to be the circumstance.

8 0
2 years ago
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