What is the gain or loss from purchasing a call option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 points) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling prices for the bonds is $80,000

Answers

Answer 1

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1500

When Break even point = Strike price - premium

Break even point = $90,000 - $1,500

Break even point = $88,500

Hence, Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500


Related Questions

10) Convexity of indifference curves implies that consumers are willing to A) settle for less of both "x" and "y". B) give up more "y" to get an extra "x" the less "x" they have. C) acquire more "x" only if they do not have to give up any "y". D) give up more "y" to get an extra "x" the more "x" they have

Answers

Answer:

The correct answer is the option B: give up more "y" to get an extra "x" the less "x" they have.

Explanation:

To begin with, the indifference curves are the ones that show the relationship that exists between two goods and its how much the consumer values its consumptions becuase it indicates how much of a good is able to lose in order to obtain more of the other. These indifference curves have certain characteristics and conditions, one of them is the fact that they are always convex. And that is because they will show how much of a good they will be able to lose in order to get an extra of the other good that they have less of it.

The difference between an interest rate of 5.4% on a 10-year corporate bond and an interest rate of 2.4% on a 10-year government bond is called

Answers

Answer:

The risk premium, is the right answer.

Explanation:

The difference between the interest rates of 10-year corporate bond and the 10-year government bond is termed as the “risk premium” because it is the rate of return that an investment offers or gives over the period and above the risk-free rate of return. Here risk-free rate is the return on the when there is no probability of financial loss. Therefore, government bonds have risk free returns because there is no financial loss associated with these bonds.

You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in dividends and $32 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return.

Answers

Answer:

The maximum price you would pay for the stock today is __$30.23___ if you wanted to earn a 10% return

Explanation:

The maximum any rational investor would pay for such stock is the present value of the future cash flows that the stock would pay, in other words, the present value of dividend and sale of stock using 10% as the discount rate.

The present value of future cash flows=($1.25+$32)/(1+10%)

The present value of future cash flows=$33.25 /1.10

The present value of future cash flows=$30.23  

Many cutomers feel neglected once they place an order with a company because the saleperson has many new customers and is not as attentive as he or she was previously.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Lets imagine an example that can happen to anyone: A salesperson contacts you several times because you are interested in buying a new car but you are not sure which one. Once you decided which car you want and place your order, you generally have to wait a few hours or even a couple of days. But after the sale was closed, the salesperson disappears and if you want to ask him/her about your car, he/she is too busy and tells you to contact someone else in the company.

This happens not only with cars, it also happens when you place certain custom orders, insurance policies, etc. Once the deal is closed and you pay, the salesperson turns away and looks for new clients. This is extremely frustrating and yes, makes you feel neglected.

Despite the popularity of drug testing, there is no clear evidence that applicants who score positive on drug tests are any less reliable or less productive employees.

a. True
b. False

Answers

Answer:

False

Explanation:

drug testing is a technical ways of analysing specimen such as urine, blood and so on from human to know if the person is on particular paren drug. This is necessary because employee that test negative to some parent drugs are more productive in their daily activities and they are reliable, and it makes the production to be effective.

Therefore, the claims that Despite the popularity of drug testing, there is no clear evidence that applicants who score positive on drug tests are any less reliable or productive employees is false.

The Foursquare app makes use of a mobile device’s GPS system to determine the user’s location. Foursquare uses consumer location information from a mobile device’s GPS to target consumers with timely and relevant promotional messages. This is an example of location-based marketing. Select one: True False

Answers

Answer:

True

Explanation:

From the questions, location marketing is a market strategy that involves using the location of a device to market a product. This happens when the devices alerts the device owner about a near by business and what it is offering.

As seen in the question, the Foursquare app uses the location of a device to alert the device owner about a nearby business.

Cheers

The pattern of faulty and biased decision making that happens in groups whose members strive for agreement at the expense of good decision making is called

Answers

Answer:

"Groupthink " would be the right answer.

Explanation:

Group-thinking seems to be a tendency that happens whenever a segment of the population achieves agreements without rational thought or consideration of the implications or replacements. The tendency generates tension within the same group the seeks to suppress imagination but innovation to avoid confrontation.

In an attempt to increase sales, JCPenney has increased its advertising and sales promotions in its current markets, hoping to attract new customers and get existing customers in the doors. Which growth strategy is JCPenney employing

Answers

Answer: Market penetration

Explanation:

Market penetration can be defined as the comparison of the assessment of how much product has been sold relative to the total market has been estimated to be covered for that particular product. It is expressed in percentage. The market penetration can be enhanced by increasing the advertisement of the product and promoting the sales.

Hence, market penetration is the growth strategy, which JC Penney is applying.

What accounting principle states that an asset or liability should be recorded at the amount given or received in the exchange transaction

Answers

Answer:

Historical cost.

Explanation:

Historical cost is an accounting principle which states that an asset or liability should be recorded at the amount given or received in the exchange transaction.

Under the Generally Accepted Accounting Principles, the historical cost concept is used for fixed assets in the United States of America. It is also known as the cost principle of accounting.

Suppose that a consumer has a marginal propensity to consume of 0.7. If this consumer earns an extra $2, her consumption spending would be expected to

Answers

Answer:

Her consumption spending will rise by $1.40

Explanation:

Marginal propensity to consume is 0.7. This information means that the individual will consume 70% of every single dollar she earns. Hence, if she consumer earns an extra $2, her consumption spending will rise by $1.40

A _____ is a broad group of people or organizations that has wants and needs that can be satisfied by a general product category, has the ability to purchase the product and is willing to exchange resources for the product. An example would be all the families with new babies who need to buy a crib, have the money for a crib and are willing to spend the money necessary to buy a crib.

Answers

Answer:

market

Explanation:

What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to some analysts

Answers

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.

What is the relevance of microeconomics to an entrepreneur? How does the law of demand affect an entrepreneur’s decisions?

Answers

Explanation:

Microeconomics helps businesses understand why consumers choose to spend their money and on what. The science behind the way consumers and even businesses purchase can influence what is sold, how and why. Ultimately, nearly all business is about supply and demand.

To be more efficient in formatting tasks, it is important to follow best practices when designing type. Which scenarios
show the applications of best practices when designing type? Check all that apply.
Joe uses an 8-point font.
Angelo uses one type of font in his document.
Jeremiah underlines words for emphasis.
Akilah indents and adds space between her paragraphs.i
Amy uses the hyphenation feature in her justified paragraphs.

Answers

Answer:

2 and 5

Explanation:

Scenarios that show the applications of best practices when designing type is

Angelo uses one type of font in his document.Amy uses the hyphenation feature in her justified paragraphs.

Thus the correct option is B and E.

What is formatting?

Document formatting describes the way a document is set up. It involves requirements on how a document should look. Formatting makes documentation appear professional and appealing.

While making any document it is required to choose one type of font which makes it a structured and systematic manner. various styles of font may distract the focus of the reader while taking look at the document.

Use of the hyphenation feature in her justified paragraphs to make it more clear and more structured to achieve a more uniform line length, Word's hyphenation feature enables the insertion of line breaks and hyphens within words.

Therefore, options B and E are the appropriate answer.

Learn more about formatting, here:

https://brainly.com/question/22444669

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Directly comparing a static planning budget to actual costs helps to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled.

a. True
b. False

Answers

Answer:

The correct answer is the option A: True.

Explanation:

To begin with, the name of "Static Planning Budget" refers to a type of budget that is used by the companies who need to keep the track of the information regarding the costs of the production and much more. The principal characteristic of this type of budget is that, as its name says, it stays static during the whole production, no matter what changes truly happen during the process. Therefore that this budget focus on keeping everything going as planned and not chaning anything. That is why that directly comparing it with the real costs will help to see the differences that happended because of the changes in activity and how well the costs were controlled by the company.

A ___ is an inexpensive product that guards connected equipment against large power spikes or surges that may infrequently occur.

Answers

Answer:

surge protector

Explanation:

A surge protector is a device that is built to prevent electrical appliances from having issues associated with voltage spikes. It reduces the voltage that is being absent to the device when the the device is connected to it. Generally a surge protector can cause electrical appliances to have longer lives as it can help to prevent damages from minimal to great ones.

Directions: Something that is valuable is scarce and give utility. Something that isn't value either doesn't give utility, or it is not scarce. Identify 2 objects in your house: one object must have value to you or your family (think about how upset you or your family would be if was lost, stolen, or broken). The other object must have little value (nobody would really notice or be upset if it was lost, stolen, or broken). Explain why these objects are valuable/not valuable in terms of utility and scarcity. Object 1: Object 2:

Answers

Answer:

Scarcity and Utility

I will explain the concepts of scarcity, value, and utility using my laptop and some writing pens.  I have only one laptop available in my family.  I use it 24-hours daily.  I attach so much value (utility) to the laptop because it is only one.  It is very scare in my household.  On the other hand, I have a packet of writing pens.  Pens are relatively not scare in my household.  If my laptop is missing, I will raise uproar in the house.  Everybody present will answer a tedious query.  But, if one of the pens gets missing, I may not even be aware that it is missing.  At the moment, I do not attach much value (utility) to the writing pens because I have many of them presently .  Writing pens are not scare in my household, as I said earlier.

Using these examples, I have demonstrated the concepts of scarcity, utility, and value.

Explanation:

Therefore, scarcity is defined by the value and the relative availability of a good.  Scarcity is a basic economic problem that shows the gap existing between limited resources and unlimited needs.  Based on the lack experienced with satisfying a need, one has to always choose between alternatives in order to maximize resource allocation and utility.

Utility in Economics refers to the value or satisfaction derivable from the meeting of a human or economic need.  It is initially connected to the concept of scarcity.  But after attaining some level of utility, scarcity temporarily evaporates.  And this is the dividing thin line.  This is why they are mostly used together.  "Something that is valuable is scarce and give utility."  Something that is not highly valuable is not usual scarce and does not give much utility, at least, to an extent.

Bloomberg LP, in partnership with the National Conference on Citizenship and Points of Light, has created a scorecard of America's top community-minded companies which they call the

Answers

Answer:

Civic 50.

Explanation:

Bloomberg LP, in partnership with the National Conference on Citizenship and Points of Light, has created a scorecard of America's top community-minded companies which they call the civic 50. It was launched in the United States of America in 2012 and is a program designed and established to recognize and honour the fifty (50) most philanthropic, community-minded or socially responsible companies in the United States of America each year, determined by True Impact through an annual survey. These fifty (50) companies are selected based on this criteria; investment, integration, institutionalization and impact.

Built-in stabilizers: A. automatically increase the size of deficits when the economy experiences demand-pull inflation B. tend to offset the impact of discretionary fiscal policy C. avoid the problems associated with the administrative lag of discretionary fiscal policy D. automatically produce a budget that is balanced over the business cycle

Answers

Answer:

C. avoid the problems associated with the administrative lag of discretionary fiscal policy

Explanation:

Built-in stabilizers are stablizers are fiscal policies that automatically reduce the impact of economic fluctuations.

For example progressive tax is an example of Built-in stabilizers. If the economy is experiencing a downturn, automatic stabilisers is triggered and amount of tax paid is reduced.

discretionary fiscal policy  are subject to approval by the government authority. So, it might take time for it to scrutinised and approved. This is an instance of administrative lag.

Built-in stabilizers are not subject to approval before they are implemented.

Which of the following is a benefit of outsourcing? a. It makes employees self-reliant. b. It helps a firm meet its expansion needs. c. It eliminates jobs that tend to be repetitious. d. It reduces a firm's risk of facing intellectual property theft.

Answers

Answer:

C. It eliminates jobs that tend to be repetitious.

Explanation:

Outsourcing is usually engaged in business to beat down the cost of production, it is the act in which a particular company invite another company from outside to carry out some service for them on agreement however, this service is been carried out at home.

It should be noted that one of the benefit of outsourcing is that It eliminates jobs that tend to be repetitious.

The kinked-demand curve model of oligopoly is useful in explaining Multiple Choice why oligopolistic prices might change infrequently. the process by which oligopolists merge with one another. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.

Answers

Answer:

why oligopolistic prices might change infrequently

Explanation:

A kinked demand curve model states that participants in an oligopoly market will be hesitant to increase their price if another competitor increases their price, but will decrease their price in case another competitor decreases their price. I.e. a price increase does not generate a lot of reactions by the suppliers, but a price decrease will be matched by all the other suppliers.

In bronfenbrenner's model, marrying and getting divorced are examples of

Answers

Answer:

In bronfenbrenner's model, marrying and getting divorced are examples of ecological transitions

According to David Ewing,
a. the corporate invasion of employees' civil rights is rampant.
b. sympathetic strikes ought to be made illegal.
c. employers have the right to fill the positions of striking workers with other workers.
d. seniority ought not be a factor in making transfers or promotions.

Answers

Answer:

a. the corporate invasion of employees' civil rights is rampant.

Explanation:

David Ewing did some study and made a report on the absence of liberty at the work place where he confirmed that there is absence of liberty and along with that there is authoritarianism in the workplace.

With all this the civil rights of employees are degrading in practice and the invasion is becoming rampant.

This is all because of extreme professional management is done now a days, further personnel engineering are also done, study of human behaviour and how to control them in the workplace is the main consideration of HR department.

_____ managers are responsible for departments that perform a single functional task and have employees with similar training and skills.

Answers

Answer:

Functional

Explanation:

Functional managers are responsible for the management and provision of control over a business unit in an organisation. They manage people and the resources in a business unit such as marketing, customer care unit etc. One of the many advantages of functional management in an organization is that they focus on certain area of specialization, meaning that workers have special skills related to their job functions.

what is medium level profession​

Answers

Medicine,agriculture,finance,tourism,teaching public services are the sectors of profession. In every field ,professions are of basic,medium and high levels.for e.g. , assistant health workers (A H W) are the basic level human resources while health assistants (HA)are medium level professionals.
Hope it helps :)

ABC Corporation raised capital through an offering of equity securities. Which component of the balance sheet has changed as a result

Answers

Answer:

Share capital in the shareholders equity section

Explanation:

The balance sheet is structured according to the accounting formulae

Asset = Liabilities + Owners Equity

When a company raises capita by the issuing of securities or is referred to as share capital.

The securities issued are common stock or preferred stock.

There is a maximum amount that a company can raise from the sale of shares and this is called authorised share capital.

Share capital is a line item that is reported under Owner equity section of the balance sheet.

The equipment and software Sparky wants to purchase will allow the computers used to design motors to be linked directly to the computer-aided equipment on the factory floor. Sparky is proposing to set up a(n)

Answers

Answer:

six sigma

Explanation:

Six sigma can be define as a management technique that is aimed at improving business so that the space for errors can be seen vividly.

The six sigma was invented in 1968 by an engineer with the aim of removing stains from clothes aside

From the question, it can be see that the sparky does not want equipment it is why he has conneted his production to a certain life

Thanks.

Which of the following regarding Master Budgeting is true?

a. The manufacturing overhead budget is typically prepared before the production budget.
b. The first budget a company prepares in a master budget is the production budget.
c. When preparing a direct materials budget, the units of raw material needed to meet production should be added to desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased.
d. The cash budget is usually prepared after the budgeted income statement.

Answers

Answer:

Statement A, C and D

Explanation:

a. All the direct expenses budget is prepared in order to compute direct material, direct labour and other manufacturing overheads in order to compute the production budget cost. As all these are essentially required in order to make a production budget.

b. The first budget is usually the revenue or sales forecast budget.

c. Direct material to be bought = Direct Materials required in production + Closing inventory to be maintained - Opening inventory already available.

d. Cash budget not only comprises of inflow, but outflow is also as important as inflow. When all the incomes and expenses are budgeted then cash budget is prepared.

Answer:

c. When preparing a direct materials budget, the units of raw material needed to meet production should be added to desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased.

Explanation:

The master budget refers to the budget in which the expenses, sales, purchases, are recorded

It can be sales budgets, purchase budgets, etc that comes under the operating budget

While preparing the direct material budget, the raw material required to be purchased should be find out by using the following formula

= Ending inventory balance + cost of sales - beginning inventory balance

Or we can say

Cost of goods sold = beginning inventory + raw material purchase - ending inventory

hence, the correct option is c.

What is the expected result of a technology that improves rapidly and alternative service options with superior quality become available

Answers

Answer:

C). Obsolescence

Explanation:

Obsolescence is defined as the 'state of being obsolete or no longer in use' as the better alternate options become available in the market which possesses the ability to offer higher productivity. It is 'the expected consequence of a technology that enhances briskly and alternative service options with upper quality become accessible.' The producers are more likely to switch to the alternate not always due to the uncompetitiveness of the present technology but also due to the higher advantages and yielding capacity of the new option. Thus, option C is the correct answer.

A service manager would like to send out e-mails to his customers regarding an upcoming national service promotion. When is he allowed to announce the promotion?

Answers

Answer: At the same time Nissan announces the promotion

Explanation:

Considering the competition in the market, companies tend to promote their service almost at the same time, so they can give their customers options to choose from that which their opposition gave. That's why you'll observe that Toyota releases a car this year and the same month Kia releases theirs. This is to create a room of competition in the mind of their clients.

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