Answer:
$400
Explanation:
From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.
The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.
The set up cost of the butterfly spread can be calculated as follows:
Setup cost = ($11×100) + ($18×100) – ($14×200)
= 1,100 + 1,800 – 2,800
Setup cost = $100
Net gain = Options payoffs – Setup cost = $500 - $100 = $400
Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.
Answer: 10.67%
Explanation:
Mr Madoff is offering to grow the current value of $1,000 to a future value of $1,500 in 4 years.
This is a future value problem.
1,500 = 1,000 * ( 1 + interest) ^ 4 years
( 1 + interest) ^ 4 = 1,500/1,000
( 1 + interest) = 4√(1,500/1,000)
1 + interest = 1.1066819197
Interest = 1.1066819197 - 1
= 10.67%
Answer:
d. $73,778.50
Explanation:
Variable Cost = $11.07 per unit x 5,150 units = $57,010.50
Total Cost = $130,789
Fixed Cost = Total Cost - Variable Cost
Fixed Cost = $130,789 - $57,010.50
Fixed Cost = $73,778.50
Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.
Hence Total Fixed Cost is equal to $73,778.50.
Answer:
option (d) $929.42
Explanation:
Data provided in the question:
Coupon bonds payments = 5.65% semiannual
Yield to maturity, r = 6.94% = 0.0694
Face value = $1000
Now,
Coupon bond payments = 
× $1,000
= $28.25
market price per bond = Payment × 
+ 
Here,
n is the maturity period and 2n is due to the semiannual payments
Thus,
market price per bond = $28.25 × 
+ 
= $28.25 × 10.942 + 620.3
= $929.42
Hence,
The answer is option (d) $929.42
I'm assuming you want to talk about accountants, that is a practitioner of accounting or accountancy. They do disclosure or provision of assurance about financial information. This in turn helps managers, investors, tax authorities and others make decisions
about allocating resource.
In the US licensed accountants are Certified Public Accountants (CPAs), or Public Accountants (PAs), this varies from state to state.
