ou purchase one MBI July 127 call contract (equaling 100 shares) for a premium of $17. You hold the option until the expiration date, when MBI stock sells for $137 per share. You will realize a ______ on the investment.

Answers

Answer 1

Answer:

$700 profit

Explanation:

Exercise Price = $127

Expiration date price = $137

Profit for Calls buyer = $137 - $127 = $10

1 Call = 100 shares. So, the total profit = $10*100 = $1000

Buying price of one option = $17

Total buying price of the call option = $17*100 = $1,700

Total loss for the buyer = $1,700 - $1,000

Total loss for the buyer = $700

Note: Loss for the buyer = Profit for the seller. So, i will realize a $700 profit on the investment.


Related Questions

What do we call interest on interest?

Answers

Answer:

Interest-on-interest, also referred to as 'compound interest', is the interest that is earned when interest payments are reinvested.

Interest-on-interest, also referred to as 'compound interest', is the interest that is earned when interest payments are reinvested.

It is primarily used in the context of bonds, whose coupon payments are assumed to be re-invested and held until sale or maturity.

Interest-on-interest applies to the principal amount of the bond or loan and to any other interest that has previously accrued.

You own a portfolio that has a total value of $185,000 and it is invested in Stock D with a beta of .91 and Stock E with a beta of 1.33. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D

Answers

Answer:

$145,357.14

Explanation:

The computation of the dollar amount of your investment in Stock D is shown below:

Let us assume the  investment in D be $x

So,  

The investment in E is ($185,000 - x)

As we know that  

Portfolio beta= Respective beta × Respective investment weight

1 = (x ÷ 185,000 × 0.91 ) +(185,000 - x) ÷ 185,000 × 1.33

Here

Beta of market = 1

And, the Beta of risk-free assets=0

(1 × 185000) = 0.91x + 246050 - 1.33x

185,000 = 0.91x + 246050 - 1.33x

x = (246050 - 185,000) ÷ (1.33 - 0.91)

= $145,357.14

Consider the following time series data. Week 1 2 3 4 5 6 Value 19 13 15 12 17 15 Using the average of all the historical data as a forecast for the next period, compute the following. (Round your answers to two decimal places.)
measures of forecast accuracy:Mean absolute error (MAE)Mean squared error (MSE)Mean absolute percentage error (MAPE)Round your answers to two decimal places.MAE =MSE =MAPE =Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.MAE =MSE =MAPE =Which method appears to provide the more accurate forecasts for the historical data?

Answers

Answer:

1. We have:

MAE = 3.60

MSE = 15.60

MAPE = 25.45

2. We have:

MAE = 2.62

MSE = 11.11

MAPE = 19.59

3. The average of all the historical data provides the more accurate forecasts for the historical data.

Explanation:

Note: This question is not correct as the average of all the historical data is asked to be used as a forecast for the next period in requirements 1 and 2 instead of the naïve method (most recent value) for the first requirement. The correct question is therefore presented before answering the question as follows:

Consider the following time series data.

Week     1      2       3      4       5       6

Value    19    13      15     12     17      15

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

a. Mean absolute error (MAE)

b. Mean squared error (MSE)

c. Mean absolute percentage error (MAPE).

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

3. Which method appears to provide the more accurate forecasts for the historical data?

The explanation of the answer is now provided as follows:

The following formulae are to be used:

MAE = Total of Error / Number of observations

MSE = Total of Error^2 / Number of observations

MAPE = Total of Error % / Number of observations

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

Note: See part 1 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the naïve method as the forecast for the next period.

From the attached excel file, we have:

MAE = 18.00 / 5 = 3.60

MSE = 78.00 / 5 = 15.60

MAPE = 127.23 / 5 = 25.45

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

Note: See part 2 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the average of all the historical data as a forecast for the next period.

From the attached excel file, we have:

MAE = 13.12 / 5 = 2.62

MSE = 55.55 / 5 = 11.11

MAPE = 97.94 / 5 = 19.59

3. Which method appears to provide the more accurate forecasts for the historical data?

The average of all the historical data provides the more accurate forecasts for the historical data comparing the values of its MAE, MSE and MAPE to the values of MAE, MSE and MAPE of Naive method. This is because the error values of the average of all the historical data are much lowest and more closest to the actual data.

Steve borrowed $750 for a new dresser. He made 9 monthly payments to repay the loan. He paid $45 interest. What is his simple interest rate?

Answers

Answer:

222

Explanation:

Supply chain links are managed rather than the entire chain; therefore, a company can manage all the links in its chain.

a. Trueb. False

Answers

Answer:

True

Explanation:

property has Gross Scheduled Income of $100,000. The vacancy rate and credit rate allowance is 3% whereas Operating expenses are $34,000. a) What will be the Cap. Rate if you purchased the property for $600,000

Answers

Answer:

The answer is "[tex]10.5\%[/tex]"

Explanation:

Following are the Cap rate:

 [tex]= \frac{(Income \times (1 - vacancy\ rate) - operating \ expense)}{\text{purchase price of property}}[/tex]

[tex]= \frac{(\$ 100,000 \times 0.97 - \$ 34,000)}{\$ 600,000}\\\\= \frac{\$ 63,000}{ \$ 600,000}\\\\= 10.5\%[/tex]

In the context of employee engagement, it is observed that the highly engaged employees feel a deep connection to their company. Disengaged employees:

a. feel disconnected, portraying deviant behavior at the workplace.
b. put in efforts to be as good as engaged employees.
c. continue working without affecting the turnover.
d. put time but no attention into their work.
e. engage in productive activities to prove their worth.

Answers

Its A hope this helpsss

Calculate the net present value in US$ of an investment in the health spa only, assuming that the 1,500-square-foot unit is purchased and then resold at the end of 12 years. (Hint: Before making your present value calculations, multiply all amounts expressed in CI$ by $1.25 to convert into US$.)

Answers

Answer: Hello I was able to find the Major part of the question online as attached below

answer :

Net present value ( NPV ) = $153353.91

Explanation:

NPV =  ( Present value of Cash Inflow)  - ( Present value of Cash outflow) --  ( 1 )

present value of cash inflow

i) cosmetic products = ( 5500 * 1.25 * 12) * ( 6.8137) (cost of capital )) = 562130.25

ii) land sale = ( 1500 * 300 * 1.25 ) * ( 0.8186 ) ( cost of capital )) = 179212.5

∑ present value of cash inflow = 741342.75

Present value of cash outflow  ( other expenses )

∑ present value of cash outflow = 587,988.84

NPV = 741,342.75  -  587,988.84  = $153,353.91

Blaine, Inc., produces three products, Argon, Xon, and Zeon, from a joint production process. Data on the process are as follows:

Product Agon Xon Zeon Total
Allocated joint cost $45 $450
Sales value at split-off $90 $900
Additional processing costs $60 $150
Sales value if processed $150 $300 $1200
Contribution from processing further $15 $0 $360
Units produced 750 1250 3,000 5,000


Required:
Determine the value for each misse

Answers

Answer:

Agon

Allocated joint cost $45

Sales value split off $90

additional processing cost $60

Sales value if processed further $150

Contribution from processing further $15

Xon

Allocated joint cost $75

Sales value split off $150

additional processing cost $150

Sales value if processed further $300

Contribution from processing further $0

Zeon

Allocated joint cost $330

Sales value split off $660

additional processing cost $180

Sales value if processed further $1200

Contribution from processing further $360

Explanation:

Sales split off point Xon $300 - $150 = $150

Sales split off point Zeon $900 - $90 - $150 = $660

Joint cost of Xon = 450 / 900 * 150 = 75

Joint cost of Zeon = 450 / 900 * 660 = 330

According to COSO, an executive's deliberate misrepresentation to a banker who is considering whether to make a loan to an enterprise is an example of which of the following internal control limitations?

Answers

Answer:

Management override

Explanation:

Management override can be regarded as ability of management as well as those that are in charge of governance

to prepare fraudulent financial statements or to manipulate accounting records through overriding these controls, in this case, the controls might even shows that it is operating effectively. For management overrides to be prevented, culture that encourages honesty as well as one that supports employees that can speak up in cases whereby when they suspect that something is wrong should be built. It should be noted that According to COSO, An example of Management override internal control limitations is an executive's deliberate misrepresentation to a banker who is considering whether to make a loan to an enterprise

what role does planning play in public sector

Answers

Hello there! The answer is below.

Explanation:

Planning plays a very big role in the public sector. Planning lets you measure how big your response has to be to something, especially in business. It lets use utilize your resources and make as much as you need. When you plan in the public sector of marketing, you can also plan what to sell and align your priorities.

Answer:

Since the public sector is usually in charge of creating and directing defense, it also usually retains power over how troops are paid, training mechanisms, and rules of combat. Foreign policy is another area in which it is important to present a unified front through the public sector, in order to prevent conflicting treaties and agreements.

Explanation:

Boswell Company reported the following information for the current year: Sales(50,000 units) £1,000,000, direct materials and direct labor £500,000, other variable costs £50,000, and fixed costs £360,000. What is Boswell’contribution margin ratio?

Answers

lol btw u play ml? or growtopia?

The five new production assistants at Hollywood Studios will attend an orientation meeting on their first day. During orientation, they will learn what is expected of them and how they fit into the ___ culture.

Answers

Answer: Corporate

Explanation:

Corporate culture simply refers to the standards, shared values, attitudes, and beliefs by which the members of an organization are characterized.

The corporate culture is important in guiding how the employees of an organization think and act as it symbolizes the personality of the company shows its core beliefs. New employees are expected to know the corporate culture of an organization.

mcdonalds, burger king, pizza hut and KFc retaurastand all operate in different countries are best characterized as what kind of corporations

Answers

Answer:

multi-domestic corporation

Explanation:

A multi-domestic corporation are the localized form of multinational corporations. They operate through domestic channels. The management is headed by the domestic operations. The managers and operations are the local personnel who make the decisions and make significant changes in the respective countries. The management of McDonalds, Burger King, Pizza Hut and KFC comprises of the local team in every country. The decisions and regulations are termed in accordance to the culture, environment and market of the particular country.

Select the correct answer.
Which option will help you add visual effects to your presentation when you move from one slide to another?
OA.
slide background
OB.
slide master
Ос.
slide theme
OD.
slide transition

Answers

D. Slide transition I believe.

Answer:D. Slide transition

Explanation:

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

a. Product costs incused during the period will initially appear as inventory on the balance sheet.
b. General, selling, and administrative costs are always expensed when paid.
c. Product costs may be divided between the balance sheet and income statement.
d. General, selling, and administrative costs never appear as inventory on the balance sheet.

Answers

The answer is c products costs I hope this help

In which basic market would stoves be traded?
the labor market
the money market
the goods and services market
the capital market

Answers

Answer:

the labor market

Explanation:

#carry on learning

Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 51 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs per year: Fixed manufacturing overhead $441,000 Fixed selling and administrative expense $112,000 The absorption costing unit product cost is:________
a. $65 per unit
b. $128 per unit
c. $63 per unit
d. $149 per unit

Answers

Answer:

unitary absorption production cost= $128

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed manufacturing overhead:

Unitary fixed overhead= 441,000 / 7,000= $63

Now, the unitary absorption production cost:

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128

The time required to collect information about the current state of the economy is known as A. the effect lag. B. the recognition lag. C. the fiscal lag. D. the action lag.

Answers

Answer:

B. the recognition lag.

Explanation:

Recognition lag means the delay that lies between the economic shock arise and when it should be seen by the economist, government etc. Here the delays could be arise as the data that documented the economy state should not be available on the instant basis and after this it takes the time to analyze it correctly

Therefore as per the given situation, the option b is correct

__________________ includes policies, procedures and mindset of top management. A tangible representation can be found in the employee handbook or annual statement. Monitoring process Control activity Control environment Risk assessment

Answers

Answer:

Control environment

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.

An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting. Internal control includes the control environment.

Control environment includes policies, procedures and mindset of top management. One good example of the representation of a control environment can be found in the employee handbook or annual statement of the business firm or organization.

The cost of debt is equal to one minus the marginal tax rate multiplied by the average coupon rate on all outstanding debt. True False

Answers

Answer:

False

Explanation:

False, The given information is false because coupon rate is not required while calculating the cost of the debt. Only interest rate which is also called Yield to maturity and the marginal tax rate is needed to calculate the cost of debt.

Below is the formula:

Cost of debt after the tax = Interest rate (1 - Marginal tax rate)

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

Answers

Answer:

0.104

Explanation:

We are to determine the yield to maturity of the bond

yield to maturity can be determined using a financial calculator

Cash flow in year 0 = -500

Cash flow each year from year 1 to 6 = 0

Cash flow in year 7 = 1000

YTM = 10.4%

To find the YTM using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

82% of companies shop their products by truck. 47% of companies ship their product by rail 40% of companies shop by truck and rail. What is the probability that a company shops by truck or rail

Answers

Answer: 0.89

Explanation: add the 82% and 47% then subtract the 40, answer is 89.

82% of companies shop their products by truck. 47% of companies ship their product by rail, 40% of companies shop by truck and rail. The probability that a company shops by truck or rail is 0.89.

What is company?

The term "company" refers to legal entities that are lawfully registered under the Company Act. The company's major goal is to increase profits while maintaining goodwill. With the assistance of management, the organization was flawlessly run. Employees are compensated by the company.

Determine the probability of that a company shops by truck or rail:

As the given amount are:

82% of companies shop their products by truck.

47% of companies ship their product by rail

40% of companies shop by truck and rail.

The company shops by truck = ?

The company shops by truck = products by truck + product by rail – shop by truck and rail.

The company shops by truck =  0.82 + 0.47 – 0.40

The company shops by truck = 1.29 – 0.40

The company shops by truck = 0.89

As a result, the probability that a company shops by truck or rail is 0.89.

Learn more about on company, here:

https://brainly.com/question/27238641

#SPJ2

Concentration is the ability to focus and pay​

Answers

Answer:

nice

Explanation:

Concentration is the ability to focus and pay

Which statement below best describes what will most likely happen, from an economic standpoint, when a music group with growing popularity goes on tour and sells out a certain venue in hours with tickets for $25 apiece?

a. Nothing changes, since the market is already clearing.
b. The price of tickets for future concert dates will rise until it hits equilibrium.
c. The group will cancel the concert and give everyone a refund.
d. The group will add more performance dates with tickets at a lower cost.

Answers

Answer:

A

Explanation:

Market clears when quantity supplied equals quantity demanded. here the market is in equilibrium

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

XYZ Manufacturing reported the following:
Revenue $485,000
Beginning inventory of direct materials, January 1, 2015 24,000
Purchases of direct materials 122,000
Ending inventory of direct materials, December 31, 2015 15,000
Direct manufacturing labor 21,000
Indirect manufacturing costs 34,000
Beginning inventory of finished goods, January 1, 2015 38,000
Cost of goods manufactured 186,000
Ending inventory of finished goods, December 31, 2015 33,000 Operating costs 126,000
What is XYZ's gross margin (or gross profit)?

Answers

Answer:

the gross profit of XYZ is $294,000

Explanation:

The computation of the gross profit is shown below:

= Revenue - cost of goods sold

= $485,000 - ($38,000 + $186,000 - $33,000)

= $485,000 - $191,000

= $294,000

Hence, the gross profit of XYZ is $294,000

The above formula should be used for the same

a 17-year annuity pays $1,100 per month, and payments are made at the end of each month. The interest rate is 16 percent compounded monthly for the first 6 years and 13 percent compounded monthly thereafter. What is the present value of the annuity

Answers

Answer:

The present value of the annuity is $73,091.50

Explanation:

Use the following formula to calculate the present value of the annuity

Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor  for 6 years ]

Where

Annuity Payment = $1,000

Annuity factor for first 6 years = 1 - ( 1 + 16%/12 )^-(6x12) / 16%/12 = 46.10028344

Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820

Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163

Placing values in the formula

Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]

Present value of annuity = $46,100.28 + $26,991.22

Present value of annuity = $73,091.50

Dogs R US uses the perpetual inventory system to account for its merchandise. A customer returned merchandise. Assuming that the purchase was originally bought on credit for $400 with a cost to Dogs R US of $100, demonstrate required journal entry of Dogs R US to record the return by selecting all of the correct actions below. (Check all that apply.) Multiple select question. Credit Accounts Receivable $400. Credit Sales Returns and Allowances $400. Debit Accounts Payable $400. Credit Merchandise Inventory $100. Credit Cash $400. Debit Sales Returns and Allowances $400. Credit Cost of Goods Sold $100. Debit Cost of Goods Sold $100. Debit Merchandise Inventory $100.

Answers

Answer:

Credit cost of goods sold $100.

Debit merchandise inventory $100.

Credit accounts receivable $400.

Debit sales returns and allowances $400.

Explanation:

These are the demonstrate required journal entries of Dogs R US to record the return.

Credit cost of goods sold $100.

Debit merchandise inventory $100.

Credit accounts receivable $400.

Debit sales returns and allowances $400.

Transaction exposure manifests itself when MNCs engage in each of the following, except: Group of answer choices Forward market. Acquiring assets/Incurring liabilities in foreign currency Buying/Selling on credit in foreign currency. Swap market /Options market. Futures market.

Answers

Answer:

Forward market.

Explanation:

Transaction exposure represent the uncertatinity level where the business is involved in the trade that to be done on the international level. It is the risk where the currency exchange rate fluctuates when the financial obligation is undertaken by the firm

So as per the given situation, it engaged in all the things except the forward market because in all other things it is engaged by the MNC

Therefore the first option is correct

Suppose that the required reserve ratio is 0.20. If a customer makes a deposit of $10 million in a bank, then the money supply could potentially

Answers

Answer:

$50 million

Explanation:

Reserve Ratio : they are the percentage of deposits required by the central bank that banks keep

Increase in the total value of checkable deposit is determined by the money multiplier

Money multiplier = amount deposited / reserve requirement

10 / 0.2 = 50 million

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