At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock price at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)

Answers

Answer 1

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.


Related Questions

Who are the most aggressive of the types we looked at?

Answers

What were you looking at????

Duncan foods orders 500 cans of crushed tomatoes every month to be consistent with recommendations made by the EOQ model. If the annual inventory holding cost is​ $0.50 per can per​ year, then what are its annual inventory holding costs in​ dollars? (assume that the assumptions for the EOQ model​ hold) nothing

Answers

Answer:

$125

Explanation:

average inventory = 500 / 2 = 250

annual holding costs = 250 x $0.50 = $125

also, if you want to determine the order cost:

EOQ = √[(2 x S x D) / H]

EOQ = 500

H = annual inventory holding cost per unit = $0.50

D = annual demand = 500 x 12 = 6,000

500 = √[(2 x S x 6,000) / 0.50]

500² = 12,000S / 0.50

250,000 x 0.5 = 12,000S

125,000 = 12,000S

S = 125,000 / 12,000 = $10.417 ≈ $10.42

annual ordering costs = $10.42 x 12 = $125.04

How much interest does a $407 investment earn at 6% over seven years?

Answers

$170.94 is the answer

A five-year bond has a par value of 1000, a coupon of 3%, and a required yield of 5%. What should be the market price of this bond?

Answers

Answer:

The market price of the bond is $913.41

Explanation:

The coupon payment is annual, meaning it is being paid once a year.

N(Number of years/Number of periods) = 5

I/Y(Yield-To-Maturity) = 5 percent

PMT(coupon payment) = $30 [(3/100) x $1,000]

FV(Future value/Par value) =$1,000

PV(present value or market value) = ?

Now to solve this, lets use a financial calculator (e.g Texas BA II plus)

N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41

Therefore, the market price of the bond is $913.41

The difference between Centralized and Decentralized system in Reverse Supply Chain was whether the recalled products initially being evaluated and collected at the retailers or centralized Evaluation & Test facility. True or False?

Answers

Answer:

The given statement is "True".

Explanation:

The reverse production process refers specifically to either the receipt of products from consumers through manufacturers.

In something like a decentralized operations management, most returning items go to a centralized assessment and testing facilities to have been re-stocked, refreshed as well as scarred. Throughout the organized production chain, returning goods pass directly to consumers for abolishing as well as reprocessing.

Gerry is concerned about the risks involved in launching a new business, especially the financial risks. If she chooses the sole proprietorship form of ownership, her liability is

Answers

Answer:

Unlimited

Explanation:

Here are the options to this question :

is shared with his creditors

shared with his investors

limited to the amount of his taxes

unlimited

A sole proprietorship is a type of business that is owned by one person

Characteristics

it is owned by one person

the business has unlimited liability

the business has limited access to capital

the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

the business is usually not separated from the owner

Suppose that the Federal Reserve sells Treasury bills. We can expect this transaction to _____ the money supply, _____ Treasury bill prices, and _____ interest rates.

Answers

Answer:

increase; raise; lower

Explanation:

In the case when the treasury bills purchased that represents there is an money injection in the economy this results in rise in the money supply due to which the rate of interest would reduced. Also if the purchase of the treasury bills would rise this represents that the treasury demand would rise that results rise in the Treasury bills price

so the above is the answer  

If your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, they are exercising ________ power.

Answers

Answer:

Legitimate power.

Explanation:

Legitimate power is the type of one that is exercised by someone in a position of authority in the workplace.

The leader gives instructions based on his official office or title in the organisation.

I'm the given scenario where your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, he is stating conditions got a pay raise based on his position as your supervisor

Answer:

If your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, they are exercising ________ power.

Incentive power.

Explanation:

The superior is exercising the power of incentive.  Incentives are motivations for people to take certain actions.  They can be positive and negative.  These incentives also affect the choices and behavior made by individuals and groups based on different individual and group values. Most often, incentives cause people to change their behavior in certain predictable ways.  Superiors can employ various incentive schemes to address organizational changes, and they usually include economic, social, and moral incentives.

Which type of pricing strategy has gained popularity due to the increased use of the Internet?
OA going-rate pricing
O B.
OC. value pricing
OD. perceived-value pricing
auction-type pricing

Answers

Answer:

B. Auction-Type Pricing

Explanation:

Auction-type pricing: With Internet commerce increasing in volume, the auction-type pricing strategy is growing popular in the online marketplace.

Answer:

Auction-type pricing

Explanation:

who was the first men in india​

Answers

Answer:Jawaharlal Nehru

Explanation:

Answer:
Balangoda Man

In what ways are retail banks, credit unions, and online banks different?

Answers

Answer:

The bottom line is that banks are for-profit institutions, while credit unions are non-profit. Credit unions typically brag better customer service and lower fees, but have higher interest rates. On the contrary, banks generally have lower interest rates and higher fees

The credit unions have lower fees and better interests in the saving accounts. Credit unions are a type of institution controlled by members and operated on a nonprofit basis.

Online banks are those that have internet-based services such as e-loans, and all electronic transactions.  It also includes net banking and does it yourself system. Retail banking is a provision of services by the banks to the general public.  They are often called as whole ale banking. While a bank can have diverse offering a credit union is limited. Banks provide a higher fee for interest and loans, while credit union is lower fees and interest rates.

Learn more about the ways are retail banks, credit unions, and online banks different.

brainly.com/question/12980617.

Jones Company bought Wood Company in 2020 and appropriately recorded $750,000 of goodwill related to the purchase. On December 31, 2021, the fair value of Wood Company is $6,000,000 and it is carried on Jones' books for a total of $5,100,000, including the goodwill. What goodwill impairment should be recognized by Jones in 2021?

Answers

Answer: $0

Explanation:

Wood company's value is carried in Jones company books as $5,100,000 which is less than the fair value of $6,000,000. There is therefore no goodwill because the fair value is larger than the carrying value and goodwill only exists if the reverse is the case.

If there is no goodwill, there can be no goodwill impairment so goodwill impairment recognized in 2021 is $0.

An investor is in a 30% tax bracket. If corporate bonds offer 9% yields, what yield (in percentage points) must municipals offer for the investor to prefer them to corporate bonds

Answers

Answer:

6.3%

Explanation:

Calculation for what yield (in percentage points) must municipals offer

Using this formula

Yield=Corporate bonds yield×(1-Tax rate)

Let plug in the formula

Yield=0.09 x (1 - 0.30)

Yield= 0.063 ×100

Yield=6.3%

Therefore the yield that municipals must offer for the investor to prefer them to corporate bonds is 6.3%

Fuschia Company's contribution margin per unit is $11. Total fixed costs are $77,770. What is Fuschia's break-even point in units

Answers

Answer:

Fuschia's break-even point in units is 7,070 units.

Explanation:

In accounting, the breakeven point in units refers to the units of production where total revenues for a product equal its total cost. This can be calculated for using the following formula:

Break even point in units = Total fixed cost / Contribution margin per unit ............. (1)

.Where, for Fuschia Company;

Total fixed costs = $77,770

contribution margin per unit = $11

Substituting the values into equation (1), we have:

Break even point in units = $77,770 / $11 = 7,070 units

Therefore, Fuschia's break-even point in units is 7,070 units.

Mullin, InC., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then sells them to other firms. Mullin, InC. is a(n)

Answers

Answer:

wholesaler

Explanation:

A wholesaler is part of the downstream supply chain. It operates by purchasing large amounts of certain goods and then reselling them to smaller retailers. Wholesalers act as intermediaries between small retailers that are unable to purchase large amounts from manufacturers, but still need to purchase them at a discount price. Generally, wholesalers do not sell directly to the general public, only to other smaller businesses.

Blossom Biotech management plans a $120 million IPO in which the offering price to the public will be $50 per share. The company will receive $47.50 per share. The firm’s legal fees, SEC registration fees, and other out-of-pocket costs will total $500,000. If the stock price increases 14 percent on the first day of trading, what will be the total cost of issuing the securities?
Total cost $ _________

Answers

Answer:

$23,300,000

Explanation:

Total IPO costs include both direct and indirect costs. Direct costs are all the associated costs related to the IPO itself, while indirect costs equal the amount of money lost due to not pricing the stocks correctly.

total stocks issued = $120,000,000 / $50 = 2,400,000

total underwriting fees = ($50 - $47.50) x 2,400,000 = $6,000,000

other associated costs = $500,000

total direct costs = $6,500,000

total indirect costs = ($50 x 14%) x 2,400,000 = $16,800,000

total costs = $23,300,000

Payb- Based on the information below, calculate the payback period. (4 points) Show and label your work. Investment $700,000 Required rate of return 12% Depreciation method Straight Line Useful life 5 years Residual value $20,000 Estimated net cash inflows per year for five years $150,000 2. Based on your answer in part 1, would you accept or reject this project? Why?

Answers

Answer:

4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Explanation:

Payback period is the time it takes to recover the amount invested in a project from its cumulative cash flows

Payback period = amount invested / cash flows

$700,000 / $150,000 = 4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Piper Pipes has the following inventory data: July 1 Beginning inventory 20 units at $120 5 Purchases 120 units at $112 14 Sale 80 units 21 Purchases 60 units at $115 30 Sale 56 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a LIFO basis?
a. $15,392.
b. $15,412.
c. $7,328.
d. $7,348.

Answers

Answer:

COGS= $15,412

Explanation:

Giving the following information:

July 1 Beginning inventory 20 units at $120

July 5 Purchases 120 units at $112

July 14 Sale 80 units

July 21 Purchases 60 units at $115

July 30 Sale 56 units

First, we need to calculate the number of units sold:

Units sold= 136

To calculate the cost of goods sold using LIFO (last-in, first-out), we need to use the cost of the last units incorporated into inventory:

COGS= 60*115 + 76*112

COGS= $15,412

Government agencies allow consumers to initiate transactions with government agencies, such as when they pay their taxes, pay traffic fines, or renew automobile registrations via the Internet. The online marketing domain involved is ____________ .

Answers

Answer:

affiliate marketing

Explanation:

In simple words, the affiliate marketing relates to the type of marketing under which the user and the handler of any online domain interact with each other due to the actions made by one or both of the parties. In this type of online marketing the transactions are done on the basis of the pre-defined information on the user end.

Thus, from the above we can conclude that the given case depicts affiliate marketing.

The online marketing domain involved is C2G.

The following information related to C2G is:

The full form of C2G is Consumer to Government. In this, the consumer provide the feedback related to the government authority. In this, the traffic fines, taxes are paid.

Therefore we can conclude that The online marketing domain involved is C2G.

Learn more: brainly.com/question/6201432

The economic and logical position of a firm in an oligopoly industry can be well understood through ___________.

Answers

Answer:

The economic and logical position of a firm in an oligopoly industry can be well understood through Concentration Ratios, which measure measure the proportion of total market share controlled by number of firms. When there is a high fixation proportion in an industry, financial specialists will in general recognize the business as an Oligopoly.

Explanation:

An oligopoly is a market structure in which a couple of firms overwhelm. At the point when a market is shared between a couple of firms, it is supposed to be exceptionally thought. Although a couple of firms overwhelm, it is conceivable that numerous little firms may likewise work on the lookout. Thinking about the market for air travel, significant air crafts like British Airways (BA) and Air France regularly work their courses with a couple of close contenders, yet there are additionally numerous little carriers providing food for the holidaymaker or offering expert administrations.

The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt (mostly credit cards and auto loans) but maintained the deductibility of interest payments on mortgages and home equity loans. What do you think happened to the relative amounts of borrowing through consumer debt and home equity debt

Answers

Answer:

what is the question?

Explanation:

Juan purchases an annuity for 3890 dollars that will make 19 annual payments, the first to come in one year. If the effective rate of interest is 10.8 percent, how much is each annual payment?

Answers

Answer:

489.92  

Explanation:

The formula for the  present value of an ordinary annuity below can be used to determine the size of annual payment wherein  the formula is rearranged to make annual payment the subject of the formula:

PV=Annual payment*(1-(1+r)^-n/r

PV=price paid today=3,890

Annual payment= the unknown

r=effective rate of interest=10.8%

n=number of annual payments expected=19

3,890=Annual payment*(1-(1+10.8%)^-19/10.8%

3,890=Annual payment*(1-(1.108)^-19/0.108

3,890=Annual payment*(1-0.142476931 )/0.108

3,890=Annual payment*0.857523069 /0.108

Annual payment=3,890*0.108/0.857523069

Annual payment= 489.92  

The Nacho Division of the Tex-Mex Company has a return on investment (ROI) of 12%, sales of $217,000, and an asset turnover of 4. What was Nacho's operating income?
a. $1,628.
b. $6,510.
c. $104,160.
d. $26,040.

Answers

Answer:   Nacho's operating income= b. $6,510.

Explanation:

First, we calculate the Total Asset of the Divison.

Asset turnover = Sales/ Total Assets

Total Assets = Sales/ Asset turnover

= $217,000/ 4

Asset turnover=$54,250

Also Return on investment = Operating Income/ Total Assets

Therefore Operating Income=Return on investment x Total Assets

= 12% X 54,250

=$6,510

Your campus computer store reported Sales Revenue of $175,000. The company's gross profit percentage was 65 percent. What amount of Cost of Goods Sold did the company report?

Answers

Answer:

The company reported $61,250 amount of Cost of Goods Sold

Explanation:

As gross profit percentage is the net percentage of sales revenue and cost of goods sold. We can find the cost of goods sold percentage as follow

Gross profit = Sales - Cost of Goods Sold

Placing the percentage

65% = 100 % - Cost of Goods sold

Cost of Goods sold = 100% - 65%

Cost of Goods sold = 35%

Now calculate the value of cost of goods sold using following formula

Cost of goods sold percentage = Cost of good sold / Sales Revenue

35% = Cost of Goods sold / $175,000

Cost of Goods sold = $175,000 x 35%

Cost of Goods sold = $61,250

Suppose your production costs increased. In 1 or 2 sentences, describe the effect of this increase on the quantity of goods you supply.

Answers

Answer:

In the product process, margins define much of the procedure. If production costs increase, the quantity of goods produced will almost always decrease given the price of raw materials stays consistent.

Explanation:

Résumés should be prepared using the following guidelines:
12-point font
uniformly designed
white space to improve readability printed on quality paper​

Answers

Answer:

I personally selected all of them, not sure if it's right or not because my teacher didn't tell me for some reason, but it's worth a try.

Explanation:

The money lost by not working is called

Answers

it's called bankrupt

When reflecting upon the newer generation, each older generation says the same thing:

Answers

Answer:

live long boomers

Explanation:

Calculate the average stock in a department with annual sales of $1,840,000 and an annual stock turnover of 5.4.

Answers

Answer:

$366,667

Explanation:

Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it

Given:

annual sales =$1,840,000

annual stock turnover =5.4.

average stock can be calculated as

average stock =annual sales/

annual stock turnover

= 1,840,000/ 4.5

= $366,667

Hence the average stock in a department is $366,667

For a pure competition firm if price is less than the minimum of the __________, output at 0 will result in less loss than producing at any other level.

Answers

Answer:

need more information

Explanation:

For a pure competition firm is charging a price less than the minimum average variable cost at zero output , will result in a loss than producing at any other level.

What is a pure competition firm?

A theoretical market structure is referred to as pure competition. There are numerous buyers and sellers, and prices are determined by supply and demand. Companies make only enough money to stay in business. If they made too much money, other companies would enter the market and drive down profits.

If a profit-maximizing firm produces a positive output in the short run, then the market price must be greater than or equal to the Average variable cost (AVC) at that output level. Hence when price is less than minimum AVC, the firm produces zero output.

Therefore the market price is less than average variable cost for zero output for pure competition firm.

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