You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The option expires today when the value of ABC stock is $34.60. Ignoring trading costs and taxes, what is the net profit or loss on this investment

Answers

Answer 1

Answer:

$270

Explanation:

Calculation to determine the net profit or loss on this investment

Using this formula

Total profit/Loss =Stock value -Strike price-Option quoted)×100×Call option

Let plug in the formula

Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6

Total profit =$0.45×100×6

Total profit= $270

Therefore the net profit on this investment is $270


Related Questions

Paige Company estimates that unit sales will be 10,700 in quarter 1, 12,400 in quarter 2, 14,600 in quarter 3, and 18,700 in quarter 4. Using a sales price of $83 per unit. Prepare the sales budget by quarters for the year ending December 31, 2017.

Answers

Answer:

From the attached excel file, we have:

Quarter 1 Sales Value = $888,100

Quarter 2 Sales Value = $1,029,200

Quarter 3 Sales Value = $1,211,800

Quarter 4 Sales Value = $1,552,100

Year = $4,681,200

Explanation:

Note: See the attached excel file for the the sales budget by quarters for the year ending December 31, 2017.

From the attached excel file, we have:

Quarter 1 Sales Value = $888,100

Quarter 2 Sales Value = $1,029,200

Quarter 3 Sales Value = $1,211,800

Quarter 4 Sales Value = $1,552,100

Year = $4,681,200

Based on predicted production of 26,000 units, a company anticipates $507,000 of fixed costs and $448,500 of variable costs. The flexible budget amounts of fixed and variable costs for 24,000 units are (Do not round intermediate calculations):

Answers

Answer:

u may do addition I think from that process

2. An entrepreneur must make sure to budget carefully since they oversee their own company's finances.
True
False

Answers

Answer:

True .....this is because the entrepreneur is the risk bearer of the business...he is liable for any profit/loss.

Refer to Exhibit 16.6, which reflects the relationship between the inflation rate and the unemployment rate. If the economy started near point b and government purchases increased, we would expect the economy in the short run to move to _____

Answers

Answer: Point C

Explanation:

When government purchases increases, there will be more money in the economy which will have a multiplier effect in the economy of increasing investment and consumption spending both of which will lead to new companies being founded and old companies increasing capacity.

The unemployment rate will therefore decrease as more people are hired to boost capacity but the inflation rate will increase because of the rise in demand. The only point on the graph that shows these two things in point c so that is where the economy will move to in the short run.

Scanlon Corporation has estimated its activity for April as follows: Sales: $900,000 Gross profit (based on sales): 30% Increase in accounts receivable during month: 15,000 Increase in finished goods inventory during month: 25,000 Total selling and administrative costs: 80,000 Depreciation included in selling and administrative costs: 15,000 Scanlon has no raw material or work in process inventory at the beginning or end of April. On the basis of the above, what are estimated cash disbursements for April

Answers

On the basis of the above, Scanlon Corporation's estimated cash disbursements for April is: $695,000.

Data and Calculations:

Sales:                                                                                   $900,000

Gross profit (based on sales): 30%                                      270,000

Cost of goods sold = (Sales - Gross profit)                       $630,000

Increase in accounts receivable during month:                    15,000

Increase in finished goods inventory during month:           25,000

Total selling and administrative costs:                                 80,000

Depreciation included in selling and administrative costs: 15,000

Cash spent on selling and administrative costs =          $65,000 ($80,000 - $15,000)

Cash disbursements for April:

Cost of goods sold =             $630,000

Selling and admin. (cash) =       65,000

Total cash disbursements = $695,000

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Ecker, Inc. produces milk at a total cost of $66,000. The production generates 60,000 gallons of milk which can be sold for $1 per gallon to a pasteurization company, or the milk can be processed further into ice cream and then sold for $3 per gallon. It costs $75,000 more to turn the annual milk supply into ice cream.

Required:
If Ecker processes the milk into ice cream, how much is the incremental profit or loss? Should Ecker process the milk into ice cream or sell it as is?

Answers

Answer:

Yes it should make milk into ice cream and sell it

It will gain profit of $9000

Explanation:

please mark as brainlyest

Lead Was Once Used in Makeup​

Answers

Answer:

I DIDN'T UNDERSTAND IS IT FUN FACT OR A YOU'RE TRYING TO ASKQUESTION ?
Hiiiiiiiiiiiiiiiiiiii.......question! is this a question or a fun fact-?

Identifying the Difference Between Risk and Threat Types of Threateners

Answers

Answer:

peligro es una cosa peligroso es otra peligrosisimo es otrisima

Explanation:

Name any two professional training needed in profession.

Answers

1. learner management system and environment.

2. implications for pedagogy and application to resource poor environment.

As project manager, Gabriella has discovered a major problem that could affect the remainder of the project.
What should she do before deciding how to resolve the problem?

Answers

Answer:

Develop a problem statement for the problem

Develop a problem statement for the problem she should do before deciding how to resolve the problem.

What is project manager?

A project manager is in charge of the project's planning, acquisition, implementation, and conclusion. The project manager is in charge of the entire undertaking and manages every aspect of it, including the project scope, the project team, and the resources allotted to it.

At least three years of experience in a comparable capacity, communication skills, formal training, and a PMP certification are typically needed. A professional association, a university or college, or an online learning program with a narrow concentration are all options for obtaining certification.

One of the most difficult occupations is project management since no day is ever the same and you must use all of your project management abilities to address every issue.

Thus, Develop a problem statement for the problem.

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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $51,900; total assets, $209,400; common stock, $81,000; and retained earnings, $54,682.)
CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes 450,600 297,250 153,350 99,200 4,300 49,850 20,082 $ 29,768 Net income CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 18,000 Accounts payable 18,500 4,600 3,600 9,400 Accrued wages payable 30,600 Income taxes payable 5,500 38,150 Long-term note payable, secured by 65,400 mortgage on plant assets 2,600 Common stock 153,300 Retained earnings 81,000 84,450 $ 257,550 $ 257,550 Total liabilities and equity
* These are short-term notes receivable arising from customer (trade) sales.
Required:
Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)

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Answer:

jjhujhhhvvvjbvcgyggcvjkj

Name the different types of stock account​

Answers

Answer:

Cash accounts. The traditional brokerage account is a cash account, which also is known as a Type 1 account. ...

Margin accounts. You don't have to have as much cash on hand to buy stock when you open a margin account. ...

Options. ...

IRAs and other retirement accounts.

Explanation:

what is the various nation income meature

Answers

Explanation:

Concept of National Income

The National income is the total amount of income accruing to a country from economic activities in a year time. It includes payments made to all resources either in the form of wages, interest, rent, and profit.

what is consumerism mean

Answers

Answer:

the protection or promotion of the interests of consumers.

The protection or promotion of the interests of consumers.

Miriam if you found this comment

























jason buy 5 apple for class he give and who spent money

Answers

Answer:

JASON BUY FIVE APPLE BUT HE GAVE TO STUDENT SO THEY SPENT MONEY

jason buy 5 apple for class he give and who spent money

This year, Herb Partnership generated $740,000 ordinary business income. Herb has two equal partners: Savory LLC and Sweet Corp., an S corporation. Savory LLC has three members: Mr. Parsley, an individual who owns a 40 percent interest; Mrs. Rosemary, an individual who owns a 35 percent interest; and Sage Inc., a C Corporation which owns a 25 percent interest. Sweet Corp. has 100 shares of outstanding stock, all of which are owned by Ms. Mint, an individual.

Required:
Identify the taxpayers who must pay tax on the partnership income, and determine how much income must be reported by each.

Answers

No equivalent fraction of the equation is instructions to follow and analyze the diagram below the complete 5509 50 507MLG equals 43.6%, MLI equals 46.4%, GH equals $35.81 calls equals style equation to the 4396 equals I’m

1. ¿Una pequeña panadería que elabora 1,000 panes diarios, podría implementar una gestión de compras para la adquisición de sus insumos? ¿En qué le puede beneficiar?

Answers

La respuesta correcta para esta pregunta abierta es la siguiente.

. Definitivamente, una pequeña panadería que elabora 1,000 panes diarios, puede implementar una gestión de compras para la adquisición de sus insumos.

> La manera en la que esta pequeña panadería se puede beneficiar es que estaría implementando un sistema administrativo y operativo ya estructurado que le beneficiaría para eficientar mejor los recursos y organizar mejor sus operaciones.

> Una gestión de compras es una forma efectiva de implementar un procedimiento más productivo en el manejo de los recursos.

> Por medio de esta gestión de compras, el dueño o jefe de la panadería va a poder establecer con claridad un calendario para saber qué cantidad de masas comprar, cuántos kilos, cada cuándo, y con qué proveedores, quienes ofrezcan un mejor precio para los insumos.

Sin duda, aunque sea una pequeña panadería, los beneficios de implementar un sistema de gestión de compras convertiría a este pequeño negocio en una empresa más formal y la ayudaría a prepararse para cuando tuviera que aumentar sus operaciones o pensar en la apertura de una segunda sucursal.

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Freya and her team resolved several problems and came up with some great techniques during their latest project. What should they do to help improve the performance of future projects?

Answers

They should do identifying and documenting the lessons that are learned for improving out the performance of upcoming projects

The performance of the upcoming projects should depend upon the following information:

Return on investment.Cost of quality.Cost performance.Cycle time of the project.ProductivityPlanning the strategy, identifying it, analyzed it, and executed it.

These above factors should be for the performance

So in order to improve the performance of the upcoming projects. we should do the identification and documenting the lessons that are learned.

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A company issued $50,000 of 8%, 10-year bonds on January 1. The bonds pay semi annual interest. The present value factor of a single amount of 20 periods at 8% is 0.2145.The present value of 10 periods at 4% is 0.6756. The present value of 20 periods at 4% is 0.4564. Determine the present value of the par value of the bonds. Multiple choice question. $22,820 $10,725 $50,000 $33,780 g

Answers

Answer:

$22,820

Explanation:

Calculation to determine Determine the present value of the par value of the bonds.

Discount rate =8%/2

Discount rate= 4%

Present value factor of 20 periods at 4%= ( 1 / 1.04^20 )

Present value factor of 20 periods at 4%=0.4564

Using this formula

Present value of the par value of the bond = Future value of the bond x Present value factor =

Let plug in the formula

Present value of the par value of the bond=$50,000 x 0.4564

Present value of the par value of the bond = $22,820

Therefore the present value of the par value of the bonds is $22,820

Assume the government has a balanced budget and that the economy is experiencing a period of growth higher than predicted. The tax revenue collected by the government is likely to ________, which would lead to a ________.

Answers

The tax revenue that is collected by the government is likely to increase which would then lead to a budget surplus.

A budget reveals the expenditure and the revenue of the government for a particular fiscal year.

Since there is a balanced budget such that the revenue and the expenses for the given year is thesame, then due to the higher growth, there'll be an increase in the tax revenue.

The increase in tax revenue will then lead to a situation whereby the revenue is more than the expenditure, therefore this will lead to a budget surplus.

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Sandoval needs to determine its year-end inventory. The warehouse contains 33,000 units, of which 4,300 were damaged by flood and are not sellable. Another 3,300 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 5,300 units at a consignee's location. How many units should Sandoval include in its year-end inventory

Answers

Answer:

37,300

Explanation:

Calculation to determine How many units should Sandoval include in its year-end inventory

Using this formula

Year-end inventory units=(Warehouse units- Damaged units)+ Units purchased+ Units at consignee's location

Let plug in the formula

Year-end inventory units=(33,000 - 4,300) +3,300+5,300

Year-end inventory units=28,700+3,300+5,300

Year-end inventory units=37,300

Therefore How many units should Sandoval include in its year-end inventory is 37,300

You purchased a stock at a price of $47.52. The stock paid a dividend of $1.55 per share and the stock price at the end of the year was $52.34. What was the total return for the year

Answers

Answer:

13.40%

Explanation:

The price of the stock is $47.52

The stock paid a dividend of $1.55

The stock price at the end of the year is $52.34

Therefore the total return for the year can be calculated as follows

= 52.34-47.52+1.55/47.52

= 6.37/47.52

= 0.1340×100

= 13.40%

Hence the total return for the year is 13.40%

describe how to create customer confidence
write a statement to describe the above criteria

Answers

Answer:

10)ways to build customer confidence and trust

1)Anticipate customer needs. How do you build

2)customer trust? ...

3)Be transparent about product knowledge. ...

Own your mistakes. ...

4)Be clear. ...

5)Share customer experiences. ...

4)Make the buying experience easy. ...

7)Be empathetic. ...

8)Teach rather than sell

9)Add a personal touch

10)follow through on promise

A company issues 1 million shares of common stock with a par value of $0.02 for $15 a share. The entry to record this transaction includes a debit to Cash for: A. $15,000,000 and a credit to Common Stock for $15,000,000. B. $20,000, a debit to Capital Receivable for $14,980,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. C. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000. D. $20,000 and a credit to Common Stock for $20,000.

Answers

The entry to record this transaction includes a debit to Cash for C. $15,000,000, a credit to Common Stock for $20,000, and a credit to Additional Paid-in Capital for $14,980,000.

For the cash received, the entry to record the transaction, Cash account is debited with $15,000,000 (1,000,000 x $15).

The Common Stock account is credited with $20,000 (1,000,000 x $0.02) to record the common stock value of the transaction.

And the Additional Paid-in Capital is credited with $14,980,000 (1,000,000 x $14.98) to record the additional capital contributed above the par value.

The $14.98 is the difference between the issue price ($15) per share and the par value ($0.02) per share.

The par value is the nominal amount that each share is issued.

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Money spent on groceries is an example of a/an

Answers

Expense. Hope this helped!

ABC welding machine has 6 years of remaining life. If kept, the machine will have depreciation expenses of $700 each year. If the current book value is $4,200, and it can be sold for $3,500 at this time. If the old machine is not replaced, it can be sold for $800 at the end of its useful life. ABC is considering purchasing a new machine, which costs $12,000 and has an estimated useful life of 6 years with an estimated salvage value of $2,000. This machine will be depreciated straight-line to zero book value. The new machine would raise sales by $3,000 per year; the new machine would increase operating costs by $500 per year. To support the greater sales, the new machine would require $5,000 additional investment in NWC. ABC's tax rate is 25% and its WACC is 15%. What is the amount of operating cash flow in year 2 (initial cash flow)?
a. $2.250
b. $2,300
c. $2,100
d. $2,200
e. $2,150

Answers

The amount of the operating cash flow in year 2 is $2,200

The calculation of the amount of the operating cash flow in year 2 is as follows:

But before that following calculations need to be done:

Depreciation on the new machine is

= New machine cost ÷ Useful life

= $12,000 ÷ 6

= $2,000

Now,

Incremental depreciation because of a replacement should be

=Depreciation on the new machine - Depreciation on the old machine

= $2,000 - $700

= $1,300

Now  

Tax shield on depreciation is

= 25% of $1,300

= $325

Finally, the Operating cash flow in year 2 is

= (Increase in sales- Increase in operating cost) × (1 - tax rate) + Tax shield on depreciation

= ($3,000 - $500) × 0.75 + $325

= $2,200

Therefore we can conclude that the amount of the operating cash flow in year 2 is $2,200.

Hence, option d is correct.

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Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).

Answers

The coupon rate must be set at 9.77%

The after-tax return on the bonds is:

= Annual payment rate * ( 1 - tax rate)

= 8.1% * ( 1 - 40%)

= 4.86%

The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:

= 4.86% + 1%

= 5.86%

If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:

= After tax yield / ( 1 - tax rate)

= 5.86% / ( 1 - 40%)

= 9.77%

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Answer:

9.77 is the correct answer

i think this helps u

HOW CAN I CREATE A PERFECT SALES STRATEGY?

Answers

Answer:

B2B marketers and businesses are using LinkedIn automation to strengthen their sales and marketing strategy.

Here is how;

Engage With The Right AudienceTake Advantage of LinkedIn GroupsSend Personlized Outreach Messages

Most of the lead generation and sales tactics on LinkedIn require a lot of time if you choose to do them manually.

Nancy is responsible for recording workplace injuries in the OSHA (Occupational Safety and Health Administration) 300 log. Which of the following workplace injuries is exempted from being recorded for OSHA?
Marked out of 100 ingwestion
a. Injuries leading to lost time from work
b. Injuries requiring restricted duty or job transfer
c. Injuries requiring only first aid
d. Injuries causing a restriction of motor abilities

Answers

The statement "Injuries that cause a motor abilities restriction" should be exempted.

The following information should be considered:

Nancy does not need to involve the injuries that are related to the motor capabilities because Osha 300 log only involved the injuries or illnesses that are death-related.It also involved the injuries that are related to the day away from the work or restricted work or transform into other jobs. It also offers the medical treatment over and above first aid.

Therefore we can conclude that the statement "Injuries that cause a motor abilities restriction" should be exempted.

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Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a:_________.
A. markup.
B. resource flow.
C. capital gain.
D. core competency.

Answers

B.

Customers will have a variety of flavors to choose from

This advantage of Frozen Gold best exemplifies a core competency. Thus the correct option is D.

What is a core competency?

Core competencies refer to unique abilities, skills, or characteristics which an organization carries in order to differentiate their goods from the competition and achieve a market advantage with the help of this.

This core competency can be anything like the process of manufacturing, promotion, advertising, product design, product features and so on which helps to identify the product.

In the given case, the core competency of ice cream shop is that they provide a wide array of flavors which is unique in nature as well as the atmosphere in their stores is also attractive which reflects their services to the customers.


Therefore,  option D is appropriate.

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