The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.

Answers

Answer 1
Answer:

A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.

The correct option is a. I, II, and III only

 Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.

The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.

The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.

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Answer 2
Answer:

Answer: a. I, II, and III only

Explanation:

The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.

As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.

The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.


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Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):1. Issued stock for $623 cash (example). 2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account. 3. Paid $5,000 in principal and $300 in interest expense on long-term debt. 4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account. 5. Incurred $25,249 in shipping expenses, all on credit. 6. Paid $118,241 cash on accounts owed to suppliers. 7. Incurred $10,069 in marketing expenses; paid cash. 8. Collected $38,200 in cash from customers paying on their Amazon credit card account. 9. Borrowed $16,231 in cash as long-term debt. 10. Used inventory costing $111,934 when sold to customers. 11. Paid $830 in income tax recorded as an expense in the prior year.Required:For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.
A company purchased a building for $850,000 on January 1, 2010. As of December 31, 2014, $200,000 of accumulated depreciation had been recorded related to this building. The building was sold to another party for $1,250,000 on January 1, 2015. On the sale of this building, the company should recognize:
A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows:Debbie Tara Annual Salary $ 150,000 $ 81,000 Billable Hours 2,000 1,800 The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara’s services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup.Required:(1) Compute the predetermined overhead rate.(2) Compute the hourly billing rate for Debbie and Tara. (Do not round your intermediate calculations.)

Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of $12,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD partnership interest is $20,000. What is Daniela's basis in the distributed inventory and accounts receivable?

Answers

Answer: The answer is as follows:

Explanation:

Given that,

Cash = $16,000

Inventory = $16,000 fair value (inside basis $8,000)

Accounts receivable with a fair value = $8,000 (inside basis of $12,000) to Daniela

Daniela's basis = $20,000

JRD basis = cash + inventory + accounts receivables

                = 16,000 +  2,000 + 2,000

                =$20,000

Out of $20,000,

Pending amount for inventory and accounts receivable allocation:

= JRD basis - Cash basis

= $20,000 - $16,000

= $4,000

This pending amount is allocated equally among the inventory and accounts receivable i.e, $2,000 is allocated to inventory and $2,000 is allocated to accounts receivable.

Final answer:

Daniela's basis in the distributed inventory is $2,000, and her basis in the accounts receivable is $3,000.

Explanation:

Daniela's basis in the distributed inventory and accounts receivable can be calculated using the proportionate distribution method. To determine the basis in the distributed inventory, we calculate the inside basis of $8,000 multiplied by Daniela's partnership interest of 25%, which equals $2,000. As for the accounts receivable, we calculate the inside basis of $12,000 multiplied by Daniela's partnership interest of 25%, which equals $3,000.

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Here is the income statement for Skysong, Inc. SKYSONG, INC. Income Statement For the Year Ended December 31, 2022
Sales revenue $404,100
Cost of goods sold 234,000
Gross profit 170,100
Expenses (including $16,700 interest and $26,400 income taxes) 83,500
Net income $ 86,600
Additional information:
1. Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.
2. The market price of Skysong stock was $14 in 2022.
3. Cash dividends of $22,900 were paid, $4,900 of which were to preferred stockholders.
Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
(a) Earnings per share $enter earnings per share in dollars
(b) Price-earnings ratio enter price-earnings ratio in times times
(c) Payout ratio enter payout ratio in percentages % (d) Times interest earned enter times interest earned times

Answers

Answer:

Earnings per share

= Net income - Preferred dividend

 No of common stocks outstanding at the end

= $86,600 - $4,900

  37, 100 shares

= $2.20 per share

b. Price-earnings ratio

= Market price per share

  Earnings per share

= $14

  $2.20

= 6.36

c. Pay-out ratio

   = Ordinary dividend paid                 x 100

      Earnings after preferred dividend

   = $18,000 x 100

      $81,700

   =  22.03%  

c. Times interest earned

   = Earnings before interest and tax

              Interest expense

   = Net income + Interest expense+ Tax

             Interest expense    

  = $86,600 + $16,700 + $26,400

           $16,700  

 = 7.77 times                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

 

Explanation:

Earnings per share equals net income minus preferred dividend divided by number of common stocks outstanding at the end of the year.

Price-earnings ratio is market price price per share divided by earnings per share.

Pay-out ratio is ordinary dividend paid divided by earnings after preferred dividend.

Times interest earned is earnings before interest and tax divided by interest expense. Earnings before interest and tax equals net income plus interest expense plus income tax.

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,200 940 Cost per equivalent unit $ 15.26 $ 6.13 A total of 20,200 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total. (Round your final answers to the nearest whole dollar amount.)

Answers

Answer:

total ending WIP value        39,334.20

transferred-out                   432.078.00

Explanation:

Ending work in proces inventory

we multiply the equivalent units by the cost per equivlent unit

materials 2,200 x 15.26  =  33,572

converion  940  x   6.13  =    5,762.2

then, we add them to get thetotal value of the ending WIP

 total ending WIP value     39,334,2‬

for the transferred out, we add both equivalent cost as this are complete.

And multiply by the whole amount 20,200

trasnferred out: 20,200 x (15.26 + 6.13) = 432.078

Sylvia is conducting a job analysis for the level one and level two account manager positions at her firm. In doing so, she should consult all of the following EXCEPT __________.a. the Dictionary of Occupational Titles
b. role incumbents
c. supervisors
d. job applicants

Answers

Answer:

Option d: Job applicant

Explanation:

A job is simply defined as a group of related activities/duties.

Job Analysis is simply the task of collection information about the job that is to identification of tasks, duties, responsibilities and others that is done by human resources (HR) department, by observing, surveys, interviews, and other means. In Job analysis, there are different people or unit to consult in an organization when carrying it out e. g supervisor. A job applicant have no business with a job analysis as it is not up to them or within their domain/jurisdiction.

The beta of a security is calculated as: (_____ of a security’s return with the return on the market portfolio / _______).A. Variance; Covariance of the security returnB. Covariance; Standard deviation of the market returnC. Covariance; Variance of the market returnD. Variance; Covariance of the market returnE. Covariance; Variance of the security return

Answers

A security's beta is calculated by dividing the security's return covariance with the return on the market portfolio by the market return variance. As a result, choice (C) is the best way to respond.

What is the beta of security?

A stock's beta (β) value is a gauge of how volatile its returns are compared to those of the broader market. It is a crucial component of the Capital Asset Pricing Model and is utilized as a risk indicator (CAPM). A corporation with a higher beta has more risk as well as higher anticipated rewards.

One way to determine beta is to first divide the standard deviation of returns for the security by the standard deviation of returns for the benchmark. The correlation between the security's returns and the returns of the benchmark is multiplied by the resulting value.

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Answer:

Beta of a security is the covariance of the security return with the return on the market portfolio divided by variance of the market return.

The correct answer is C

Explanation:

Beta of a security is calculated as covariance (Ri,Rm) divided by Variance of the market return. Beta is used for measuring the systematic risk of a security.

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

Answers

Answer:

A joint venture

Explanation:

A joint venture -

It refers to as the business agreement between two or more groups in order to attain a common goal collectively , is referred to as joint venture .

The parties comes together with their resources to accomplish the goal together .

The common project can be a new business or any existing business .

In a joint venture , the profit and loss is equally shared among each of the member  .

Hence , from the given scenario of the question ,

The correct answer is joint venture .

Answer:

Export minimum public procurement policy

Explanation:

'Chinese government allowing foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises' : illustrates the case of -  'Export minimum public procurement policy'

This is a policy adopted by various economies. The policy states that foreign companies should use a minimum level of inputs from their domestic medium & small scale enterprises. This is to create equitable growth opportunities for the MSMEs. As MSMEs are important by perspective of - regionally balanced growth, income equity, employment opportunities generation ; they need this protection.

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