Assume a pension fund purchased stock at $53. Call options at a $50 exercise price presently have a $4 premium per share. The pension fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is $56, what is the gain or loss per share to the pension fund (including its gain from holding the stock as well?


a. $4 gain
b. $6 loss
c. $2 loss
d. $1 gain
e. $0

Answers

Answer 1

Answer:

d.$1 gain

Explanation:

Calculation for what is the gain or loss per share to the pension fund

Gain per share = Stock Purchased- Exercise price + Premium per share

Let plug in the formula

Gain per share = $53-$50 + $4

Gain per share=$53-$54

Gain per share= $1

Therefore the gain or loss per share to the pension fund will be $1 gain


Related Questions

A manager is asked to initiate activities that will support environmental scanning. Which activity should be used by this manager for this purpose?
A. Reviewing production
B. Monitoring competitors
C. Setting the advertising budget
D. Implementing a new program

Answers

Answer:

B)monitoring competitors

Explanation:

Competitors monitoring can be regarded as SWOT analysis of the organization competitors, it helps in the awareness of moves that can be taken by the firm compititors such as as the marketing strategies, stock as well as as pricing policy. It should be noted that for a manager to initiate activities that will support environmental scanning. Monitoring competitors activity should be used by this manager for this purpose.

Suppose you receive the following end-of-year cash bonuses at work: end of year 2: $4,000 end of year 4: $6,000 end of year 6: $10,000 end of year 8: $12,000 If you invest your bonuses and earn 12% on your investments, how much will you have at the end of year 12

Answers

Answer:

the amount that have at the end of year 12 is $65,899.63

Explanation:

The computation of the amount that have at the end of year 12 is shown below:

Future value = Present value × (1 + Interest rate)^number of periods

= $4000 × (1 + 12%)^10 + $6,000 × (1 + 12%)^8+ $10,000 × (1 + 12%)^6 + $12,000 × (1 + 12%)^4

= $65,899.63

hence, the amount that have at the end of year 12 is $65,899.63

We simply applied the above formula so that the correct value could come

And, the same is to be considered

In general, which forecasting time frame best identifies seasonal effects ?

a. Short-term forecasts
b. Quick-time forecasts
c. Long range forecasts
d. Medium term forecasts
e. Rapid change forecasts

Answers

The correct answer is D

Research the challenges associated with payments across international borders and prepare a brief summary of your findings. Do most e-commerce companies conduct business internationally

Answers

Answer:

The main challenge associated with payments across international borders is the challenge of currency rates. Because currencies vary across countries, sometimes a payment can be either hugely benefitial or hugely detrimental for a company, depending on how expensive or cheap its domestic currency is compared to the foreign currency.

Another challenge is related to international legislation, banking systems, red tape, and so on. Banking laws in some countries are more favorable to firms than in others, for example, by charging less financial expenses or comissions.

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for total assets and for total capital account are:

Answers

Answer:

Total assets = $405,000

Total capital = $330,000

Explanation:

Capital = Assets - Liabilities

= $250,000 - 75,000

= $175,000

Therefore, the capital is $175,000

Particulars    Assets    Liabilities   Capital

Building       250,000     75,000     175,000

Cash             100,000           -           100,000

Equipment    55,000            -            55,000

Total              405,000    75,000     330,000

If this game is played only once, then the most likely outcome is that a. both firms produce a good quality product. b. both firms produce a poor quality product. c. Acme produces a good quality product and Pinnacle produces a poor quality product. d. Acme produces a poor quality product and Pinnacle produces a good quality product.

Answers

Answer:

a. both firms produce a good quality product.

Explanation:

There are two companies Acme and Pinnacle that can either make good or poor products, which generate a table of four possible outcomes, that is, either they both make good products or not or either company makes good or poor products.

Assuming this was a game that was played once, the table drawn shows that the first outcome is that both companies make good products with a profit margin of $6 million.

Using the following information, compute the cost of direct materials used. Raw materials inventory, January 1$ 25000 Raw materials inventory, December 3155000 Work in process, January 127000 Work in process, December 3118000 Finished goods, January 160000 Finished goods, December 3148000 Raw materials purchases2000000 Direct labor890000 Factory utilities225000 Indirect labor75000 Factory depreciation500000 Operating expenses630000

Answers

Answer:

The cost of direct materials used is $1,970,000.

Explanation:

The cost of direct materials used can be computed using the following equation:

Cost of direct materials used = Raw materials inventory, January 1 + Raw materials purchases - Raw materials inventory, December 31 ............ (1)

Where;

Raw materials inventory, January 1 = $25000

Raw materials inventory, December 31 = $55000

Raw materials purchases = $2000000

Substituting the values into equation (1), we have:

Cost of direct materials used = $25000 + $2000000 - $55000 = $1,970,000

Therefore, the cost of direct materials used is $1,970,000.

Client files should not be visible and/or accessible to other clients. They must be in lockable cabinets or lockable rooms.
a. True
b. False

Answers

Answer:

a. True

Explanation:

Client files should be kept securely in an environment that is safe while ensuring that its confidentiality is safeguarded against unauthorized people. Moreover, the files should not be accessible by other clients or personnel that are not authorized to do so.

The Principle of confidentiality in this scenario implies that client files are secured in a lockable cabinets or lockable room in order to avoid unauthorized use or disclosure which consists of either modifying the file or making copies.

Which company is most exposed to the ups and downs of the aircraft engine industry? a) General Electric b) MTU Aero Engines c) United Tech Corp d) Rolls-Royce

Answers

I think it’s b but I can’t garauntee I’m sorry

The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can be combined to find the:__________

Answers

Answer:

Controllable variance

Explanation:

The controllable variance is the combination of the variable overhead, fixed overhead spending variance and together with this, the variable overhead efficiency variance is also involved

Hence, as per the given situation, the controllable variance is to be considered

Therefore the above represents the answer

Profit on sale of fixed assets is used to creat

Answers

Answer:

profit and loss account

Explanation:

The turnover ratio of total working capital shows the success of working capital management. It is in fact a ratio that expresses how many times on average, during one year, working capital was used to pay the total expenses of the company.

A combination of data from the balance sheet and income statement is obtained, more specifically, it is the ratio of total business spread and average working capital of the company

Assume you are about to graduate. How would you apply marketing principles to your job search? In what ways would you be able to create, communicate, and deliver value as a potential employee, and what would that value be, exactly? How would you prove that you can deliver that value? Explain your answers.​

Answers

Answer:

Are try my best if I can able are do when are graduate are happy

On January 2, 2005 Garr Company acquired machinery at a cost of $320,000. This machinery was being depreciated by the double-declining-balance method over an estimated useful life of eight years, with no residual value. At the beginning of 2007 it was decided to change to the straight-line method of depreciation. Ignoring income tax considerations, the retrospective effect of this accounting change is:__________.

Answers

Answer:

The depreciation charge will be lower in 2007 using straight line method compared to the one produced by double-declining-balance method

Explanation:

Double-declining-balance method

Depreciation Expense = 2 × SLDP × BVSLDP

Therefore,

SLDP = 100 ÷ number of useful life

         = 100 ÷ 8

         = 12.5 %

Calculation of Depreciation Expenses (DE)

2005

DE = 2 × 12.5 % × $320,000

     = $80,000

2006

DE = 2 × 12.5 % × ($320,000 - $80,000)

     = $60,000

2007

DE = 2 × 12.5% × ($320,000 - $80,000 - $60,000)

     = $45,000

Using Straight line Method for 2007 Depreciation Expense

Accumulated Depreciation (2005 to 2006) = $80,000 + $60,000

                                                                         = $ 140,000

Depreciable Amount = Cost - Accumulated Depreciation

                                   = $320,000 - $140,000

                                   = $180,000

DE = (Cost - Residual Value) ÷ Remaining Useful Life

     = $180,000 ÷ 6

     = $30,000

Conclusion :

Comparing 2007 Depreciation Expense using double-declining-balance method against straight-line method of depreciation we can see that straight-line method of depreciation produces lower results.

Gamble Corporation had beginning inventory $100,000, cost of goods purchased $700,000, and ending inventory $140,000. What was Gamble's inventory turnover

Answers

Answer:

Inventory turnover= 5.5

Explanation:

First, we need to calculate the cost of goods sold using the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 100,000 + 700,000 - 140,000

COGS= 660,000

Now, the inventory turnover:

Inventory turnover= Cost of goods sold/ average inventory

Average inventory= (beginning inventory + ending inventory) / 2

Average inventory= (100,000 + 140,000)/2= 120,000

Inventory turnover= 660,000 / 120,000

Inventory turnover= 5.5

Which of the following accurately characterizes the function of the U.S. Circuit Courts?A. The Circuit Courts are responsible for hearing appeals sent to them by the District Court system.B. The Circuit Courts are responsible for trying both criminal and civil cases.C. The Circuit Courts are responsible for reviewing cases decided by the Supreme Court.D. The Circuit Courts are responsible for overseeing all of the federal court system.

Answers

Answer:

A.

Explanation:

There are thirteen Circuit Courts in the U.S.Judicial system. The name 'circuit courts' is labelled due to the circuit process of judges across the geographical area.

The function of the U.S. Circuit Courts include that it hears the cases sent from the district court or the lower courts. They tend to hear cases that questions whether constitutional laws are applied correctly or not, or whether the laws applied by the district court is constitutional or not. The Circuit court are restricted hears certain civil and criminal cases only. They can take appeals that involves only certain limited amount of compensation, or felony cases.

Therefore, option A is correct.

A thorough evaluation of how well a project's actual performance matches the projections made when the project was proposed is called a

Answers

Answer:

post-audit

Explanation:

Post audit process can be regarded as

the analysis of result of capital budgeting investment. When this result of the audit are use in making budgeting decisions in future capital, and this side decision making process.

It should be noted that thorough evaluation of how well a project's actual performance matches the projections made when the project was proposed is called a post-audit.

1.5 marks
Q.No:5
The gap between two annual general meeting
cannot exceed
A) 6 months
6
B) 12 months
C) 15 months
D) 18 months​

Answers

Answer:

C) 15 months

Explanation:

As per the law, a company with two or more shareholders must hold an Annual AGM every year.  The AGM for a new company must be held within the first nines months after the financial year.

The AGM for an existing company must be held not later than six months after the end of a financial year. However, the law has set 15 months as the maximum gap of time allowed between two general meetings.

Problems and Applications Indicate how each of the following transactions affects US exports, imports, and net exports. Effect On... Transaction US exports U.S. Imports U.S. Net Export A French historian spends a semester touring museums and historic battlefields in the United States. Students in Paris flock to see the latest movie from Hollywood. Your auntie purchases a Panasonic camera. Your aunt buys a novel by a British author from a local bookstore. Your parents buy a bottle of French wine from a local wine store.

Answers

Answer:

Transactions                                          Exports      Imports      Net Export

A French historian spends a                Increase   Unchanged    Increase

semester touring museums

and historic battlefields in

the United States.

Students in Paris flock to see the        Increase   Unchanged    Increase

latest movie from Hollywood.

Your auntie purchases a                      Unchanged   Increase     Decrease

Panasonic camera.

Your aunt buys a novel by a British     Unchanged   Increase     Decrease

author from a local bookstore.

Your parents buy a bottle of French    Unchanged   Increase     Decrease

wine from a local wine store.

Note:

The export means selling of domestic goods and services into foreign nations

The import means domestic purchases of goods and services from foreign nation

Net export means the difference between the total export and total import of a nation.

The effects of the following on Imports, Exports, and U.S. Exports:

A French historian spends a semester touring museums and historic battlefields in the United States.

Exports IncreaseImports Unchanged Net Exports ⇒ Increase

Exports increased because a foreigner was spending time and money on American made products. Net exports always increase when exports increase over imports.  

__________________________________________________________

Students in Paris flock to see the latest movie from Hollywood.

Exports IncreaseImports Unchanged Net ExportsIncrease

Exports increased because the movie was made by the United States.

__________________________________________________________

Your auntie purchases a Panasonic camera.

Exports UnchangedImports IncreaseNet ExportsDecrease

Imports increased here because your auntie is American and bought things from a foreign country ( Japan). Net exports decrease when imports are more than exports.

__________________________________________________________

Your aunt buys a novel by a British author from a local bookstore.

Exports UnchangedImports IncreaseNet Exports Decrease

Imports increase because the product is made by foreigners (British).

__________________________________________________________

Your parents buy a bottle of French wine from a local wine store.

Exports Unchanged Imports IncreaseNet Exports Decrease

Imports increase because the wine is made by foreigners (French).

__________________________________________________________

In conclusion, imports decrease net exports and exports increase net exports.

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The return on total assets is computed by dividing net sales by average total assets. net income by ending total assets. net income by average total assets. net sales by ending total assets.

Answers

Answer:

The return on total assets is computed by dividing net income by ending total assets

Explanation:

Here in this question, we are interested in knowing the mathematical formula that can be used to calculate the return on total assists

Mathematically, to calculate the return on total assets, two factors are needed.

These factors are;

i) Company’s net income

ii) Company’s assets total value

By using a specific period of time ( quarterly, annually etc); we can divide i by ii

So what we mean here is that;

Return on total assets = Net income of a company over a specific time period divided by the total asset value of the company over that specific period of time

Marta is CEO of a large financial company. She is always open to the opinions of her employees and tries to make a decision based on the reasonably available options. This BEST displays the _____ dimension of trustworthy leadership. a. Openness b. competence c. loyalty d. integrity

Answers

Answer: A; Openness

Hope that helps! <3

Fill in the blanks to complete the following sentence about labor force and unemployment, assuming country X has the following statistics:total population 16 years old or older = 50,000,000 full-time students = 4,200,000 not employed and not currently searching for jobs = 6,000,000 not employed but currently searching for jobs=2,336,000 currently employed = 29,664,000 Drag words below to fill in the blank(s) in the passage. Country X has a labor force of______, a labor force participation rate of_____, and an unemployment rate of_____.

Answers

Answer:

Country X has a labor force of 32,000,000, a labor force participation rate of 64%, and an unemployment rate of 7.3%.

Labor force:

= Unemployed people + Employed

Unemployed people here are those looking for jobs.

= 2,336,000 + 29,64,000

= 32,000,000 people

Labor force participation rate:

= Labor Force / Population of working age

= 32,000,000/50,000,000

= 64%

Unemployment rate:

= Unemployed / Labor force

= 2,336,000/ 32,000,000

= 7.3%

Country X has a labor force of 32 million, a labor force participation rate of 64 %, and an unemployment rate of 7.3%.

Labor Force:

They are those people in the country that can work.

Labor force = Unemployed people + Employed

Unemployed people are those looking for jobs.

Labour force = 2,336,000 + 29,64,000

Labor force = 32,000,000 people

Labor Force Participation Rate:

The percentage of labor force in working age  in the country.

[tex]\bold {Labor\ force\ participation\ rate =\dfrac {Labor\ Force} {Population\ of\ working\ age}}\\\bold {=\dfrac { 32,000,000}{50,000,000}\times 100 = 64}[/tex]

= 64%

Unemployment rate:

It is the percentage of employed people to the population of the country.

[tex]\bold {Unemployment\ rate= \dfrac {Unemployed} { Labor\ force}}\\\\\bold = {\dfrac {2,336,000}{ 32,000,000}\times 100}\\\\= 7.3%[/tex]

= 7.3%

Therefore, The unemployment rate in the country is 7.3%.

To know more about unemployment rate,

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During a sprint retrospective, a potentially shippable product is reviewed and tested.

a. True
b. False

Answers

Answer:

A. True

Explanation:

the Sprint Retrospective provide the opportunity so that Scrum Team can have the room for inspection of itself and also have enough time to draw a plan that will bring improvement as far as next spring is concerned. After Sprint Review then Retrospective follow.It should be noted that During a sprint retrospective, a potentially shippable product is reviewed and tested.

Suppose that a certain country has an MPC of 0.8 and a real GDP of $400 billion. If its investment spending decreases by $5 billion, what will be its new level of real GDP

Answers

Answer: $375 billion.

Explanation:

Using the MPC, one can calculate a multiplier that shows how much GDP changes when there is a change in investment.

Multiplier = 1 / ( 1 - MPC)

= 1 / (1 - 0.8)

= 1 / (0.2)

= 5

Change in GDP = change in investment spending * multiplier

= -5 billion * 5

= -$25 billion

New level of GDP = 400 - 25

= $375 billion.

The marginal propensity to consume (MPC) is:_______.A) 0.90.
B) 0.10.
C) 0.80.
D) 0.95.
E) 0.75.

Answers

Answer: E) 0.75

Explanation:

Marginal Propensity to Consume measures the amount that a person spends on consumption when their income increases.

It is calculated as;

= change in consumption/ change in income

Income went from $0 to $500 so change = $500

Consumption went from $300 to $675 so change is = $375

MPC = 375/500

= 0.75

Briefly describe the differences among international bond, bank and equity markets. Would you support an MNC that favors financing through bonds issues or would you rather support one

Answers

Answer:

Answer to this question is explained below in detail.

Explanation:

This question is not complete. This has two parts a) and b). Part a) is complete and b) is incomplete. I have written down the complete question and will try to answer completely.

a) Briefly describe the differences among international bond, bank and equity markets.

b) Would you support an MNC that favors financing through bonds issues or would you rather support one that favors financing through stock issues?

Solution:

a) We are asked to differentiate between international bond, bank and equity markets.

All three terms are related to raising funds, lending or borrowing to raise the capital for some government or for any company.

Let's start with International Bonds first.

International Bonds : In this globalized world, a company can raise its capital through getting debt in the form of international bonds from international institutions over the assets value of the company. For example: XYZ company has a asset value of 10 million dollars, so it can get international bonds accordingly.  

International Equity markets: Again due to interlinked world, companies and institutions all over the world can invest their funds in any company around the globe. And through equity markets companies can sell their shares to raise its capital depending upon the asset value of the company.

International Banks: International banks are international institutions which raise capital in particular country and have branches all over the world. It can lend funds to companies on particular interest rates. Furthermore, all those bonds are generated in these banks as well.

b) Supporting an MNC that favors financing through bonds issues or through equity markets or stock issues will depend on the debt/equity ratio of the company. If it is low, company should go for debt or bond issues. If it is high then it should opt for stock issues.

An investor views a high debt-to-equity ratio and low times-interest-earns ratio as favorable signs of a company's ability to meet its long-term obligations. True False

Answers

Answer:

False

Explanation:

Instead the reverse is the case. A high times-interest-earned ratio and a low debt-to-equity ratio is viewed by an investor as favorable signs of a company's ability to meet its long-term obligations.  When the two measures are combined and they look favorable, investors are attracted to invest in the said company.  So companies should work to ensure that the times-interest-earned ratio is high enough to be attractive to investors.

Greg has a traditional health insurance plan with a $500 deductible, 80/20 coinsurance, and a $2000 out of pocket max. His total health care bill is $8,760. How much will he end up paying?

Answers

Answer: $2,000

Explanation:

Greg will pay the $500 deductible first.

Amount left is;

= 8,760 - 500

= $8,260

This will be shared by the insurance company and by Greg 80/20.

= 8,260 * 20%

= $1,652

Add this to the first amount he paid;

= 1,652 + 500

= $2,152

This is above Greg's out of pocket limit of $2,000 so Greg will pay his limit of $2,000.

Louise purchased her primary residence for $240,000. As part of the closing procedure, she paid $2,300 in a loan origination fee, $750 to a lawyer to review the purchase contract and other closing papers, $150 for a property survey, and $800 for title insurance. She also gave the real estate agent a $75 gift basket in appreciation for his hard work. What is Louise's basis in the residence

Answers

Answer:

$241,700

Explanation:

Luoise's basis in her house = purchase price + any costs associated and necessary to complete the purchase process = $240,000 (price of the house) + $750 (lawyer's fees) + $150 (property survey) + $800 (title insurance) = $241,700

In order to determine a house's basis, you must assume that you are purchasing the house using cash, no fees directly related to a mortgage are included, nor gifts to real estate agents.

Tanner takes out a loan today and repays the loan with eight level annual payments, with the first payment one year from today. The payments are calculated based on an annual effective interest rate of 4.75%. The principal portion of the fifth payment is 699.68.
Calculate the total amount of interest paid on this loan.
a) 1239
b) 1647
c) 1820
d) 2924

Answers

Answer:

Total interest = 1239.12

Explanation:

Assume;

Loan amount = P

Annual payment = X

P[1st payment] = X/[1+0475]⁸

P[1st payment] = X/[1.0475]⁸  

P[5th payment] = X/[1+0.0475]⁴

P[5th payment] = X/[1.0475]⁴

P[5th payment] = 699.68

So,

X = 699.68[1.0475]⁴

X = 842.39

P = (842.39/0.0475)(1 – 1/1.0475⁸)

P = 5,500  (Approx)

Total interest = [842.39 x 8] - 5,500

Total interest = 1239.12

Which rule of disclosure operates when the seller is responsible for giving the buyer any information needed to make a reasonable judgment about whether to purchase the product which the buyer could not reasonably be expected to know unless informed by the seller

Answers

Answer:

Fairness rule

Explanation:

In the fairness rule, the seller is responsible for the information given by him to a buyer in order to make a reasonable judgement whether to buy a product or not until informed by the seller. It is the responsibility of the seller to give all the necessary information to the buyer so that he is able to take the decision regarding the purchase

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