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
Answer:
7.6 percent
Explanation:
Vaughn should offer 7.6 percent on its commercial paper.
This is calculated by adding the 0.2 credit risk premium to 0.1 percent liquidity premium + 0.3 percent tax adjustment + 7 percent annualized t bills rate.
= 0.1 + 0.2 + 0.3 + 7
= 7.6
Based on this Vaughn would offer 7.6 percent on its commercial paper.
Answer:
The correct answer is intangible.
Explanation:
An intangible asset is a product or service that should not be physically delivered, but that provide us with a service. An intangible product, also called service, should not necessarily revolve around a physical product; There are also so-called pure services, that is, whoever buys a service is not buying something physical; Who buys or hires a service is paying for a transformation process.
Answer:
June 30, 2020 Bond Interest expense Debit $5,756.25
Discount on Bonds payable Credit $506.25
Cash Credit $5,250
Explanation:
We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount
Given,
Bond price = $150,000
Interest = 7%
Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20
Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)
Cash payment for semiannual interest = $5,250 (Credit)
Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)
Discount on bonds payable = $506.25 (Credit)
Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)
Answer:
A.
Explanation:
Based on the information provided within the question it can be said that the statement that is mislabeled as a performance example is "The system must automatically generate an insurance claim form." This is the only answer provided that does not deal with performance but instead is dealing with insurance claims that do not affect performance at all. Therefore this is the answer.
