Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$). You purchase a call option contract on Singapore dollars. Each contract represents S$40,000, with a strike price of $0.69 and call option premium of $0.03 per unit. Suppose that the spot price of the Singapore dollar is $0.70 just before the expiration of the call option contract. At this time, you call the contract and immediately sell the Singapore dollars to a bank at the current spot price.

Fill in the following table from your (the buyer's) perspective.

Transaction Per Unit Per Contract
Selling price of $0.92 _________
- Purchase Price of 5$ -$0.86 _________
- Premium Paid for Option -$0.02 _________
Net profit _________ _________

Answers

Answer 1

Answer: $1600

Explanation:

Selling price:

Per unit = $0.92

Per contract = $0.92 × 40000 = $36800

Purchase price of $5:

Per unit = -$0.86

Per contract = -$0.86 × 40000 = -$34400

Premium Paid for Option:

Per unit: -$0.02

Per contract = -$0.02 × 40000 = -800

Net profit = $36800 + (-$34400) + (-800)

= $36800 - $34400 - $800

= $1600

The net profit is $1600


Related Questions

in a bad news message the reasons for the decision

are so obvious that you don’t need to mention them

come directly after the buffer and follow naturally from it

should be glossed over quickly

should be long and roundabout to cushion the negative aspects

Answers

Answer:

should be long and roundabout to cushion the negative aspects

if you are delivering bad news if it is directly affecting them they would most likely like to know why and if they can help this issue

Explanation:

mrk me brainliest please.

ur mum
ur mum
ur mum

Answers

Lma o
Your mum your mum your mum to you too

Answer:

you bum

you bum

you bum

hope this helps

have a good day :)

Explanation:

when a person sells a stick for a profit he needs to know that

Answers

Answer:

He needs to know that it is not a scam and that its gonna be a fair I give you give.

Explanation:

Does anyone know how much netflix Approximately pay for a movie to be on netflix ?

Answers

Answer:

Depends on the ranking

Explanation:

At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,929. During the year, the company repaid a long-term loan in the amount of $10,839. The company paid $4,235 in interest during the year, and opened a new long-term loan for $9,525. What was the cash flow to creditors during the year

Answers

Answer:

$5549

Explanation:

Calculation to determine the cash flow to creditors during the year

Using this formula

Cash flow to creditors =Interest -New debt

Let plug in the formula

Cash flow to creditors=4235-(9525-10,839)

Cash flow to creditors=4235-(-1314)

Cash flow to creditors =$5549

Therefore the cash flow to creditors during the year is $5549

A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessionary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.

Answers

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 2,150 shares outstanding at a price per share of $70. EBIT is expected to remain constant at $20,000. The interest rate on new debt is 10 percent and there are no taxes. a.Rebecca owns $30,100 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow

Answers

Answer:

Pagemaster Enterprises and Rebecca

If the firm has a 100 percent payout, Rebecca's cash flow is:

= $3,097.

Explanation:

a) Data and Calculations:

Outstanding shares = 2,150

Current price of shares = $70 per share

Market value of outstanding shares = $150,500 ($70 * 2,150)

Debt = 30% of $150,500 = $45,150

Equity = 1- 0.30 = 0.70 or 70%

Interest rate on new debt = 10%

Interest expense = $4,515 ($45,150 * 10%)

EBIT = $20,000

Interest   (4,515)

EBT =   $15,485

Dividend payout ratio = 100%

Rebecca's investment value = $30,100 = 20% ($30,300/$150,500 * 100)

Therefore, Rebecca's cash flow = $3,097 (20% of $15,485)

A company has the following expenditures during the year. Advertising $ 200,000 Employee training 25,000 Customer outreach and consultation 175,000 The company believes that these efforts have increased the fair value of the entire company by $50,000. How much goodwill can the company recognize at the end of the year associated with these expenditures

Answers

Answer:

$0

Explanation:

Given that;

Advertising expenses = $200,000

Employee training = $25,000

Consumer outreach and consultation = $175,000

Since it is mentioned that this cost would be increased, the fair value of the entire company by $50,000

Hence, there is no information related to the takeover of the business. This implies that the goodwill recognized by the company is zero

g On January 1, 2019, plant assets, net are $190,000. On December 31, 2019, plant assets, net are $290,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $10,000. What are the cash proceeds from the sale of the plant asset

Answers

Answer:

$45,000

Explanation:

Given the equation below,

Total beginning net book value of plant assets + Total plant assets purchased during that period - Total depreciation recorded of plant assets during that period - Net book value of plant assets sold during the period = Net closing book value of plant assets

Hence, we have

$190,000 - $20,000 + $155,000 - Net book value of plant assets sold during the period = $290,000

Net boom value of plant sold during the period = $35,000

We also have the equation below;

Sales proceed - Net book value of plant assets sold during the period = Gain(loss) on disposal of assets

Sales proceed - $35,000 = $10,000

Sales proceed = $10,000 + $35,000

Sales proceed = $45,000

Activity A1 takes 5 weeks, A2 takes 7 weeks, and A3 takes 4 weeks with a 50% probability and 10 weeks with a 50% probability. What is the project completion time under the best-case scenario, that is, A3 is early and takes 4 weeks

Answers

Answer:

12

Explanation:

The computation of the project completion time under the best-case scenario is shown below;

= Activity A1 weeks taken + activity A2 weeks taken

= 5 weeks + 7 weeks

= 12

We simply added the time taken by activity 1 and activity 2 so that the project completion time could come

analyze how a person's ethics or values might affect his performance on the job. Can someone help me or give me a few example?

Answers

The data shows that: 78% of White people were employed in 2019, compared with 66% of people from all other ethnic groups combined. the difference in the employment rates for White people and those from all other ethnic groups combined went down from 16pp in 2004 to 11pp in 2019.

On July 1, 2021, Larkin Co. purchased a $460,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2021 as follows: Demolition of existing building on site $ 71,000 Legal and other fees to close escrow 12,900 Proceeds from sale of demolition scrap 8,600 What would be the balance in the land account as of December 31, 2021

Answers

Answer:

$75,300

Explanation:

The computation of the balance in the land is shown below;

Purchase cost

$460,000

Add:

Demolition of existing building on site

$71,000

Add:

Legal and other fees to close escrow

$12,900

Less:

Proceeds from the sale of demolition scrap

($8,600)

Balance in the land

$75,300

Therefore, balance in the land account as of December 31, 2021 is $75,300

"You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, –13 percent, 24 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3 percent and the average T-bill rate was 4.35 percent. What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return]"

Answers

Answer:

6.80%

Explanation:

The average nominal returns is the sum of the returns for 5 years divided by the number of returns considered( i.e 5, 5 returns for 5 years)

average nominal returns=(6%-13%+24%+18%+15%)/5

average nominal returns=10.00%

The Fisher's equation is shown thus:

(1 + i)  = (1 + r) (1 + π)

i=nominal return=10.00%

r=average real return=the unknown

π=inflation rate=3%

(1+10.00%)=(1+r)*(1+3%)

1.10=(1+r)*1.03

1+1=1.10/1.03

r=(1.10/1.03)-1

r=6.80%

If you get in an accident with a hit-and run driver, ___ will cover any damage. a. collision insurance c. medical payments b. comprehensive physical insurance d. uninsured motorist insurance

Answers

Answer:

A.

Explanation:

Collision insurance covers anything from a car accident you did, or someone else did.

In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year. a. The amount of suspended losses carried forward to the year of the sale is $fill in the blank 1 20,000 . b. What amount of the suspended losses is allocated to Activity D

Answers

Answer:

      a. -$20,000

      b. -$2,000

Explanation:

a. The amount of suspended losses carried forward to the year:

= 30,000 + (-30,000) + (-15,000) + (-5,000)

= -$20,000

b. Suspended losses allocated to Activity D:

First find the total amount of losses:

= -30,000 - 15,000 - 5,000

= -$50,000

Activity B accounted for -$5,000 of this loss.

Suspended losses to be allocated to D would therefore be:

= -5,000 / - 50,000 * -20,000

= -$2,000

In a perfectly competitive labor market marginal resource cost is: Multiple Choice the market value of the firm's output times the number of workers employed always zero the wage rate times the number of workers employed the wage rate

Answers

Answer: the wage rate

Explanation:

The marginal resource cost for labor is the additional amount that a producer would have to pay to be able to get an additional worker to work under them and produce goods.

This is therefore the wage rate because it is the amount that the worker will be paid. This wage rate is determined by market forces in a competitive market which means that it is based on demand and supply; if more people are needed, the wage rate is higher and if less are needed, the wage rate is lower.

enjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reassures her that she will earn a return of 3% per quarter but does not disclose the bond's par value. What par value would result in the return the bond broker promises

Answers

Answer:

Wenjing

The par value that would result in the return the bond broker promises is:

= $1,333.

Explanation:

a) Data and Calculations:

Bond amount paid = $2,000

Quarterly coupon payments = $40

Remaining coupon payments = 12

Bond maturity period = 3 years (12/4)

Promised returns per quarter = 3%

The implication is that the bond's annual interest rate = 12% (3% * 4 quarters)

Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)

Check this out: 3% of $1,333 = $40

nm bn nb nbg ghcgfhjhibhjbhj

Answers

Abshuwqishfwjaoajsbwvwgwjajsjbsvwjwkskdvevgwwhhwhwhwhwhwjeow

Umm Chile... anyway so

Scenario C. Victor, the president of Tortoise Bay Pharmaceuticals Inc., sends a memo to his vice presidents regarding new procedures for succession planning in the company. The vice presidents meet informally to discuss the new procedures. When the procedures are announced to the other employees, they form feedback teams. These teams draft memos providing feedback to the vice presidents and CEO regarding the advantages, disadvantages, and potential problems with the new procedures. The original memo sent by the president of the company is an example of

Answers

Answer:

Tortoise Bay Pharmaceuticals Inc.

The original memo sent by the president of the company is an example of

downward communication.

Explanation:

Whereas upward communication flows from the lower levels of an organization to higher ranks, with downward communication, information flows from one top level to a lower level in the organization's hierarchy. For example, the original memo sent by the CEO of Tortoise Bay Pharmaceuticals Inc. to his vice presidents is a downward communication. The memos that provide employees' feedback (an efficient communication feature) to the vice presidents and the CEO about the new procedures are examples of upward communication.

Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in Group of answer choices A worksheet. Lisa's general journal. Victoria's general journal. Victoria's secret consolidation journal. The general journals of both companies.

Answers

Answer: worksheet

Explanation:

The entries for the consolidation of Lisa and Victoria would be recorded in a worksheet.

Consolidation worksheet refers to the tool that is used in the preparation of the consolidated financial statements of both a parent company and the subsidiaries.

The consolidation worksheet is important as it shows the individual book values for the parents company and the subsidiaries.

Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $1,800 Stage 2: Lumber is sold to furniture company. $4,000 Stage 3: Furniture company sells furniture to retail store. $8,200 Stage 4: Furniture store sells furniture to consumer. $12,500 Instructions: Enter your responses rounded to the nearest whole number. a. What is the value added at each stage

Answers

Answer:

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300

Explanation:

Calculation to determine the value added at each stage

Stage 1 value added = $1,800

Stage 2 value added =$4,000 – $1,800

Stage 2 value added=$2,200

Stage 3 value added = $8,200 – $4,000

Stage 3 value added = $4,200

Stage 4 value added =$12,500 – $8,200

Stage 4 value added =$4,300

Therefore the value added at each stage are:

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300

The new proposed project needs to use an expensive medical equipment that is already owned by the company. The purchase price of this equipment is $637,000 . The company also spent $124,000 to update its operating software. The equipment recieved a recent market bid from an interested buyer of $718,000. The current book value of $578,000. If the company decides to use this equipment for the new project , what value should we use for this equipment to be included in the initial cash flow of the project

Answers

Answer:

$718,000

Explanation:

Based on the information given we were told that the equipment received a MARKET BID from a buyer of the amount of $718,000 which means that in a situation where the company choose to use this equipment for the new project the VALUE that we should use in order for this equipment to be included in the INITIAL CASH FLOW of the project will be the amount of $718,000 which represent the recent MARKET BID amount received from the Interested buyer.

Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. A. The trader has lost $625. B. The trader has lost $6,250 C. The trader has made $6,250 D. The trader has lost $66,287.88

Answers

Answer:

B. The trader has lost $6,250

Explanation:

Calculation to determine the amount the trader has loss

First step

You will buy at $1.75 and spend= (1.75 × 62,500) You will buy at $1.75 and spend= $109,375

Second step

But you could buy and spend= (1.65 × 62,500)

But you could buy and spend= $103.125

Now let calculate the amount the trader has loss

Loss=$103,125 - $109,375

Loss = -$6,250

Therefore The trader has lost $6,250

All of the following statements characterize the traditional personal selling approach EXCEPT: a. Traditional selling focuses on closing sales. b. Traditional selling uses short-term follow-ups that focus on product delivery. c. Traditional personal selling takes a team approach to the account. d. Salespeople sell products, not advice and assistance. e. Proposals and presentations used emphasize pricing and product features.

Answers

Answer:

c. Traditional personal selling takes a team approach to the account.

Explanation:

Traditional sales can be regarded as a

very seller-centric. This approach relies on grabbing attention through interruption of what people are doing, and by telling them the reason they should be interested in that particular thing you are offering, and after this having expectations for them to make a purchase on the spot. Personal selling can be regarded as an approach whereby a salesperson meets find ways to meet a potential buyer, this could be buyers face-to-face having the the aim of selling particular product or service. This is the most traditional form of sales, that is used by many salespeople.

Characteristics of the traditional personal selling approach are;

✓Proposals and presentations used emphasize pricing and product features

✓Traditional selling focuses on closing sales.

✓Traditional selling uses short-term follow-ups that focus on product delivery.

✓Salespeople sell products, not advice and assistance.

$82 Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products

Answers

Answer:

$28.62

Explanation:

Calculation to determine what amount of revenue will be allocated to Math Fun in the package that contains all three products

First step is to calculate the Total revenue of three product if sold individually

Total revenue= $21 + $37 + $48

Total revenue= $106

Now let calculate the allocation of revenue to Math fun based on revenue proportion

Using this formula

Revenue allocation= Packaged revenue / Total individually revenue * Revenue of Math fun

Let plug in the formula

Revenue allocation= $82/106*37

Revenue allocation= $28.62

Therefore the amount of revenue that will be allocated to Math Fun in the package that contains all three products is $28.62

A coal mine was acquired at a cost of $4,000,000. No salvage value was expected and the estimated number of units available for production was 4,000,000 tons. During the first year, 440,000 tons of coal was mined and sold. The depletion expense for the first year was

Answers

Answer:

$440,000

Explanation:

The depletion of the coal mine can be calculated using the formula below;

Depletion expense for the year

= (Cost of mine - Salvage value) × (Tons of coal sold in the year/Total tons capacity of the mine)

Given that;

Cost of mine =$4,000,000

Salvage value = 0

Tons of coal sold in the year = 440,000 tons

Total tons capacity of the mine = 4,000,000 tons

Therefore,

Depletion expense for the year

= (4,000,000 - 0) × (440,000/4,000,000)

= 4,000,000 × 0.11

= $440,000

SKCM Co. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO

Answers

Answer: $90,000

Explanation:

The Interest cost is based on the beginning PBO and the discount rate by the formula:

Interest cost = Beginning PBO * Discount rate

7,200 = Beginning PBO * 8%

Beginning PBO = 7,200 / 8%

= $90,000

Recording Transactions Affecting Stockholders’ Equity
King Corporation began operations in January 2014. The charter authorized the following capital stock:
Preferred stock: 10 percent, $10 par, authorized 40,000 shares
Common stock: $5 par, authorized 85,000 shares
During 2014, the following transactions occurred in the order given:
a. Issued 22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Sold 9,000 shares of the preferred stock at $20 per share.
c. Sold 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Required:
Give the journal entries indicated for each of these transactions.

Answers

Answer:

King Corporation

Journal Entries:

a. Debit Cash $594,000

Credit Common stock $330,000

Credit Additional Paid-in Capital- Common $264,000

To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.

b. Debit Cash $180,000

Credit 10% Preferred stock $90,000

Credit Additional Paid-in Capital - Preferred $90,000

To record the issuance of 9,000 shares of the preferred stock at $20 per share.

c. Debit Cash $45,000

Credit 10% Preferred stock $10,000

Credit Additional Paid-in Capital- Preferred $10,000

Credit Common stock $12,500

Credit Additional Paid-in Capital-Common $12,500

To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.

Explanation:

Data and Analysis:

a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000

22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.

b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000

9,000 shares of the preferred stock at $20 per share.

c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500

1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.

Find the sales tax and total cost of an espresso machine that costs $77.95. The tax rate is 8%. Round your answer to the nearest cent.

Answers

Answer:

About 84.2

Explanation:

8% of 78.00 = 6.24

78.00 + 6.24 = 84.24 (Around 84.2

apologies if wrong

Oriole Company purchased for $8,767,800 a mine that is estimated to have 48,710,000 tons of ore and no salvage value. In the first year, 2,830,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $enter the depletion cost per ton amount in dollars per ton

Answers

Answer:

the depletion cost per unit is $0.18 per ton

Explanation:

The computation of the depletion cost per unit is shown below;

We know that

Depletion cost per ton is

= (Total cost - salvage value) ÷ total estimated units

= ($8,767,800 - $0) ÷ 48,710,000

= $0.18 per ton

Hence, the depletion cost per unit is $0.18 per ton

we simply applied the above formula so that the depletion cost per ton could come

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