In late September, a customer sells 5 XYZ calls for total premiums of $750. One month later, the investor closes this position when the contract is trading at 2. The result is

Answers

Answer 1

Answer:

Loss of $250

Explanation:

As provided the total premiums = $750

That is credit of $750

When closing is done at price of trading = 2

Each call = $200

Closing position of $200 per contract.

Since there are 5 calls, value = $200 [tex]\times[/tex] 5 = $1,000

Thus, there is a debit left of $1,000 - $750 = $250

This concludes that there is a loss of $250.


Related Questions

An investor's portfolio contains the following four bonds:
ABC 7% duein 2040 DEF 6% due in 2040 GHI 5% due in 2040 JKL 8% due in2040
Which of these bonds would show the greatest price change if interest rates jumped by one percentage point?

Answers

Answer: GHI Bonds

Explanation:

All the bonds are of equal maturity so the only relevant variable is the bond yield.

Bond prices are inversely related to the market interest rate for the simple reason that bond yield is fixed. As a result when interest rates go up, they will become less attractive because they will be paying older and lower rates than the newer rates.

This is especially true for bonds with lower yields which is why GHI Bonds will show the greatest change in price.

For instance, suppose interest rates in the economy were 6% and increased to 8%, the attractiveness of the 5% bond would decrease the most because there is a chance to earn 3% more in the market than from that bond.

Plz help! Describe two ways commercial banks could lend euros to individuals and firms?

Answers

Answer:

A bank is a financial institution which is involved in borrowing and lending money. Banks take customer deposits in return for paying customers an annual interest payment. The bank then uses the majority of these deposits to lend to other customers for a variety of loans.

Commercial Bank

A bank is a financial institution which is involved in borrowing and lending money.

Firms

Answer:

Based on a common source of balance sheet data for four largest economies of the euro area over the period 1999-2011 the two main regularities were discovered first the effect of monetary policy on bank lending is significant and heterogeneous. Second,there is some evidence that monetary policy exerts larger effect on cooperative and saving banks with lower liquidity and less capital.

Explanation:

According to the U.S. Public Health Service, a "significant financial interest" includes royalty income paid to an investigator and its disclosure is required except _____

Answers

Answer: except if the income is from the institution which currently employs the investigator.

Explanation:

According to the U.S. Public Health Service, it should be noted that the investigators are typically expected to disclose the travel that is either sponsored or reimbursed by public traded company.

According to the U.S. Public Health Service, a "significant financial interest" includes royalty income paid to an investigator and its disclosure is required except if the income is from the institution which currently employs the investigator.

In the​ U.S., gross domestic product ​(GDPLOADING...​) and gross national product ​(GNPLOADING...​) are close in value. Under what circumstances would GNP be much larger than​ GDP?

Answers

Answer:

Gross National Product (GNP) includes the value of all goods and services produced by nationals both inside the U.S. and abroad. For example, GNP includes goods produced by American manufacturers in Mexico-

Gross Domestic Product (GDP) includes only the value of all goods and services produced domestically, that is, within the country, whether by national firms or foreign firms. For example, GDP includes goods produced by Swiss manufacturer Nestlé in their American Plants.

Taking this into account, we can see that a situation which would make GNP much larger than GDP is if there are many more American firms producing aborad than foreign firms producing within the country. In this circumstance, American production abroad would inflate GNP, while the small foreign production in America would not increase GDP as much.

Marissa is traveling in Great Britain and is surprised when the server brings her cookies when she ordered biscuits for breakfast. What communication concept best explains the mix-up?A. Communication is symbolic.
B. Communication is relational.
C. Communication is a process.
D. More communication is always better.

Answers

Answer:

B. Communication is relational.

Explanation:

Communication being relational is  the best concept that explains the mixup between the server and Marissa who is travelling through Great Britain. For Marissa to request for biscuits, the sever was able to relate her request to cookies which is commonly served as a breakfast meal in Britain. Hence the reason why she brought it to her.

1+2+3+4+5+6+7+8+9+10+11+12+13+14

Answers

Answer:

105

Explanation:

1+2+3+4+5+6+7+8+9+10+11+12+13+14 = 105

Answer: 105

Explanation:

A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision making and problem solving is called____________.

Answers

Answer:

Management Information System

Explanation:

MIS which stands for Management Information System which is designated for decision making. It is not any kind of software, rather it is a system developed by gathering information from different resources in the organisation.

These resources include people, processes, products etc:

In order to control, and more importantly co-ordinate between various activities of the organisation, this provides for better control and solving the problems in the organisation.

This system works on creating information through study of various above stated resources in the organisation.

The goal of ________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange. Group of answer choices

Answers

Answer:

Promotion

Explanation:

The goal of Promotion is to inform and remind people in a target market about specific products, eventually persuading them to participate.

Promotion in marketing brings publizicing which is very crucial for great sales and good returns. It should be noted that promotion could be inform of advertisement, giving discount to consumer and all actions that could aware people about a product or services.

Paige, age 17, is claimed as a dependent on her parents' 2017 return, on which they report taxable income of $120,000 (no qualified dividends or capital gains). paige earned $3,900 pet sitting and $4,100 in interest on a savings account. what are paige's taxable income and tax liability for 2017? if an amount is zero, enter "0".

Answers

Answer:

taxable income = $3,750

tax liability = $675

Explanation:

Paige's total gross income = $3,900 + $4,100 = $8,000

minus standard deduction = earned income + $350 = $3,900 + $350 = $4,250

Paige's total taxable income = $8,000 - $4,250 = $3,750

now we must determine Paige's unearned taxable income = $4,100 - $1,050 - $1,050 = $2,000 ⇒ these $2,000 will be taxed at her parents marginal tax rate (using the 2017 tax brackets for married filing jointly, their marginal tax rate is 25%)

total tax liability:

$2,000 x 25% = $500

($3,750 - $2,000) x 10% (lowest bracket) = $175

total tax liability = $675

Sally earned a 10 percent increase in her salary and received the entire increase at the beginning of the year, with the stipulation that she would not leave the company in that year. Five months later, she quit her job and went to work for a competitor. She had to return the 10 percent payment she had received because she had violated a rule for:_________
A) lump-sum salary increase.
B) profit-sharing.
C) commission.
D) employee benefit.
E) wage compensation.

Answers

Answer:

A) lump-sum salary increase.

Explanation:

Since in the question it is mentioned that Sally earned an increase of 10% in her salary and received an overall rise at the starting of the year in case that she do not leave the company.

Now after five months she quit a job, work for a competitor due to which she had to pay back the 10% payment as she break the rule of increase in lump sum salary

Therefore the correct option is A.

He "broken window fallacy" a. explains why inflation is so high. b. is illustrated when a government program is justified not on its merits but on the number of jobs it will create. c. has nothing to do with public policy. d. is a justification for the government to print more money.

Answers

Answer: b. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.

Explanation:

The broken window fallacy is simply a parable that is used to denote that when a country guess to war, it may be good for the country as it is good for the country's economy. It is a message which denotes that a beneficial event that can result in economic consequences that are negative for many others.

The broken window fallacy is illustrated when a government program is justified not on its merits but on the number of jobs it will create.

Transferable skills necessary for successful employment include _____.
a. basic skills
b. thinking skills
c. personal qualities
d. all of the above

Answers

Answer:

d u need them in all work environments for u to thrive

Answer:

Answer is option d i.e. all of the above.

Explanation:

Transferable skills are the skills or qualities that an individual has acquired through their learning processes in school, colleges, and life. These skills are those qualities that help an individual to land a successful job. Therefore, all three skills mentioned, which are basic skills, thinking skills, and personal qualities; above are included in transferable skills. Hence, the answer is option d.

Organizational culture refers to: a. how a firm acquires, uses, and develops its various resources and capabilities. b. a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. c. an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. d. the complex set of ideologies, symbols, and core values that are shared throughout the firm.

Answers

Answer:

d. the complex set of ideologies, symbols, and core values that are shared throughout the firm.

Explanation:

Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $32 to you. One of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands. He offers you $70 for the bicycle, and you gladly accept. Your friend is also happy because he thinks the bicycle is worth $104 .

Answers

Answer:

Total value created = $72

Explanation:

How much total value was created from this trade?

Total value created = Consumer surplus + Producer surplus

Total value created = ($104 - $70) + ($70 - $32)

Total value created = $34 + $38

Total value created = $72

Ronaldo is in the planning stage of writing a message. During which of the following steps in the planning process is he most likely to review the sales reports of the last three quarters?a. determining goalsb. analyzing the audiencec. gathering and collecting informationd. analyzing and organizing informatione. choosing a form, channel, and format for the message

Answers

Answer:

c. gathering and collecting information

Explanation:

When Ronaldo is  gathering and collecting information he would need to get relevant data from the sales report of the last three quarters.

Assume that the cost of aluminum used by​ soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are true​ (T) or false​ (F). A. The demand for soft drinks decreases.B. The quantity of soft drinks demanded decreases.
C. The supply of soft drinks decreases.
D. The quantity of soft drinks supplied decreases.

Answers

Answer:

a. false

b. true

c. true

d. false

Explanation:

a. The first statement is false as the demand for the soft drink do not declines

b. The second statement is true as the quantity demanded decreased

c The third statement is true as the supplied decreased

d. The fouth statement is false as the quantity suppied do not decline

Therefore the option b and C are correct and option A and D are incorrect

Fill in the blank: During the attract stage of the inbound methodology, an inbound business focuses on __________________. (Choose all that apply.)

Answers

Hi, this is an Incomplete question.

Here are the options:

becoming a trusted advisor to a prospectattracting prospects and customers through relevant and helpful contentimmediately adding value to a prospect’s buyer’s journeyexceeding a prospect’s expectations in the buying process so that they’ll want to tell their friends and family about your company

Answer:

attracting prospects and customers through relevant and helpful content

Explanation:

Interestingly, the inbound methodology describes the process of attracting, converting visitors into customers, also with the aim of making them promoters of the business.

Thus, the first stage which is the attract stage is concerned with the attraction of customers via TV or radio adverts, online marketing, etc.

In your opinion, who is responsible for ethics in a company?

Answers

Answer: Managers

Explanation: Managers are responsible for upholding ethical standards in their own ways.

An employee has enrolled in his company's nonqualified deferred compensation plan. The benefit paid at the time of the employee's retirement is:_______.
A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.
B) taxable as ordinary income to the employee with no benefit allowed to the employer.

Answers

Answer:

A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.

Explanation:

When an employee defers to receive the compensation plan he gets the benefit of lower tax bracket each year, ultimately decreasing his tax liability.

Further when he receives the complete amount his income stands taxable. Accordingly at that time ordinary tax rates as per FICA are applicable.

On the employers part it is only deductible when the employee includes it in the income of the year, and pays tax on such compensation received.

Thus, when he receives it as compensation on retirement it is normally taxable at ordinary rates to the employee and deduction can be claimed by the employer.

Potlatch Corporation has issued various types of bonds such as term bonds, income bonds, and debentures. Differentiate between term bonds, mortgage bonds, debenture bonds, income bonds, callable bonds, registered bonds, bearer or coupon bonds, convertible bonds, commodity-backed bonds, and deep discount bonds.

Answers

Answer:

Term bonds - Term bonds refer to bonds with the same maturity date and on that date their face value must be repaid.

Mortgage Bonds - this is a bond that is backed up by real estate as collateral thus giving the holder of these bonds a claim on said real estate.

Debenture bonds -  These types of bonds/ debt instruments are not secured by any collateral.

Income bonds - The coupon payments on such bonds are contingent on whether the company makes enough income to pay them in a given period.

Callable bond - These types of bonds are redeemable before the maturity date by the issuer.

Registered bonds - The bondholder's referent information is held by the issuer the main purpose of which is to ensure that payments are going to the right address.

Bearer or coupon bonds - These types of bonds can be transferred from one owner to another as the bond is not recorded in the holder's name.

Convertible bonds - These bonds are convertible into shares in the issuing company.

Commodity-backed bonds - Such bonds are valued based on the value of a certain asset that will be specified in the agreement.

Deep discount bonds - This kind of bond is sold at 80% or less than its face value.

c) What are the major jobs of a nurse?​

Answers

Answer:

1) Conduct physical exams

2) Take a detailed heath care histories

3) Provide counselling and health care to patients

4) Listening to the patients and analysing the physical and emotional needs

What happens to the price of these needed goods if production declines and there are fewer goods to go around?

Answers

Answer:

the price increases

Explanation:

its inflation due to the decrease in production of the the product but not the need for it the price will rise.

The three basic forms that a product can take are Question 5 options: A) markets, products, and images. B) goods, ideas, and intangibles. C) brands, services, and tangibles. D) services, ideas, and goods. E) ideas, services, and things.

Answers

Answer:

D) services, ideas, and goods.

Explanation:

A product can take the form of a service, an idea, or a good.

A service is a product in which no tangible goods are transferred.

A good is a tangible product that is exchanged between seller and buyer.

And an idea is an intangible product that can also be transferred or exhanged, simply by letting the other person know about it.

Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions. Description Financial Instrument Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk free Investments. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.Issued by corporations, these financial instruments fund their long-term financing requirements and have less risk than equity securities. Which of the following instruments are traded in the capital markets? A. Certificates of deposit.B. Common stocks.C. Treasury bills.D. Preferred stocks.E. Corporate bonds. The process in which derivatives are used to reduce risk exposure is called:_______.

Answers

Answer:

1. Identification of financial instruments:

Treasury Bills: Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk free Investments.

Commercial Papers: Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.

Money Market Instruments: These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.

Corporate Bonds: Issued by corporations, these financial instruments fund their long-term financing requirements and have less risk than equity securities.

2. Instruments traded in the capital markets are:

B. Common stocks

D. Preferred stocks

E. Corporate bonds.

3. The process in which derivatives are used to reduce risk exposure is called:

Hedging

Explanation:

Financial instruments can be stocks, bonds, commercial papers, or treasury bills.  Some financial instruments are capital market instruments (e.g. stocks and bonds), while others are money market instruments (e.g. commercial papers and treasury bills).

When the value of a contract depends on an underlying financial asset, it is called a derivative. Examples of underlying instruments are bonds, commodities, currencies, interest rates, market indexes, and stocks.

Yogesh and Naresh are partners sharing ratio 3:2. They admit ramesh for 1/3rd share on 1st april ,2020 and also decide to share future profits equally. Balance sheet of the firm as at 31st march,2020 was as follows:Liabilities AssetsCapital A/cs: Land 4,00,000Yogesh 5,00,000 Building 4,00,000Naresh 5,00,000 10,00,000 Furniture 50,000Current A/cs: Computer 1,00,000Yogesh 1,10,000 Stock 1,50,000Naresh 90,000 2,00,000 Sundry Debtors 2,10,000Employees' Provident Fund 25,000 Less: Provision for Doubtful Debts 10,000 2,00,000Workmen Compensation Reserve 1,00,000 Cash 10,000Sundry Creditors 75,000 Bank 70,000Expenses Payable 10,000 Advertisement 14,10,000 Suspense 30,000 14,10,000They admitted Ramesh on the following terms:A) He will bring 5,00,000 as his capital.B) His share of goodwill is valued at 1,00,000 but he is unable to bring cash for his share of goodwillC) Value of Land and Building is to be appreciated by 40,000 each.D) Value of Furniture to be reduced to 40,000.E) Provision for Doubtful Debts to be increased to 10%.F) A liability for damages of 10,000 is to be created.

Answers

Answer:

Gain on revaluation is 49,000.

Explanation:

Sacrificing Ratio:

Previous Ratio 3:2

New ratio 1:1:1

Sacrificing ratio is new ratio - previous ratio

Sacrificing ratio 4:1

Share of Goodwill

Yogesh share 100,000 * 4/5 = 80,000

Naresh share 100,000 * 1/5 = 20,000

The journal entries are:

Furniture (Dr.) 10,000

Doubtful debt provision (Dr.)  10,000

Liability for damage 10,000

Land (Cr.) 40,000

Building (Cr.) 40,000  

The area of accounting that serves the decision-making needs of internal users is referred to as (managerial/financial/research)

Answers

Answer: Managerial Accounting

Explanation:

Managerial accounting refers to the preparation of reports and analysis from the company's accounting information to enable managers decide the ways to go with a company.

This type of accounting is for internal use and so is not subject to the kind of scrutiny that financial accounting gets from accounting bodies such as IASB and the FASB.

An example would be the Supply Manager may ask for a report to be made showing them the increase in supply costs for the past decade from their preferred supplier to enable them make a decision on if to find a new supplier.

Your open-end investment company customer has decided to make automatic reinvestment of dividend and capital gains distributions. This choice will:

Answers

Answer:

Not alter the tax due on the distributions

Explanation:

Open end investment companies are those companies that trades in mutual funds. Money invested in a company is a determinant of an increase or a decrease in shares bought by shareholders. This means that in an open investment company, new stocks are issued when people invest and also buy back the old stocks when shareholders intend to withdrawn their investment.

Where dividends and capital gains are to be reinvested by the investment company, the choice made by them will not alter the tax due on the distributions but it will still be paid upon subsequently redemption.

Good X and Good Y are related goods. When the price of Good X rises by 20 percent, the quantity demanded for Good Y falls by 40 percent. What is the cross-price elasticity?

Answers

Answer:

-2

Explanation:

Good X and Y are related goods

When the price of Good X rises by 20 percent the quantity for Good Y falls by 40 percent

Therefore the cross price elasticity can be calculated as follows

= -40/20

= -2

Hence the cross price elasticity is -2

Colleges use________ management systems (LMSs) to set up web-based training sites where students can check their progress in a course, take practice tests, and exchange messages with the instructor or other students.

Answers

Answer:

Learning

Explanation:

learning management systems is a software designed for the purpose of making educated content go round. It makes learning easier.

It should be noted that Colleges use this learning management systems (LMSs) to set up web-based training sites where students can check their progress in a course. With this software student can take test in preparation for their exam

One disadvantage in a sole proprietorship business when it comes to purchasing expensive equipment is that A : the equipment must be taxed as a personal asset rather than a business asset. B : the amount of available capital is determined solely by the owner’s personal wealth. C : the owner must make the purchasing decision by doing his/her own research. D : the owner is not eligible for loans that would raise capital for the purchase.

Answers

Answer:

B : the amount of available capital is determined solely by the owner’s personal wealth

Explanation:

sole proprietorship is a one man's business which is run and seen as a personal business by the government. Apart from lacking some of the advantages of limited liability as the sole proprietor is fully liable to the extent of his personal belongings and assets should there be a need to pay a debt, there is also the problem of limited capital as the business owner is limited by how much of his personal wealth he wishes to invest into the business

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