$2 is the current payoff value of this option.
First calculate the price of the option contract: 100 shares x $1 = $100. The security price is now above breakeven, so the call option is "in the money". This is because the investor makes a profit by buying $60 per share at a strike price of only $55 per share.
The idea behind a call option is that if the current stock price exceeds the strike price, the option holder can sell the stock for a profit. You can calculate your profit by subtracting the strike price and the cost of the call option from the current market price of the underlying asset.
Buying a $5 put option gives you the right to sell 100 shares at $100 per share. If ABC Company's stock price drops to $80, he exercises his option to sell 100 shares at $100 per share, for a total profit of $1,500.
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Answer:
The total rise in income is $30,000
Explanation:
The computation is shown below:
Sale price 3 {5 × (1 - 0.40)
Less: Incremental cost 2.5 ($750,000 ÷ 300,000)
Increase in income per unit 0.50
Divide by
Total units 60,000
Total increase in income $30,000
Hence, the total rise in income is $30,000 and the same is to be considered
Answer:
1.beliefs, actions
2.continue, receive
3.quit voluntarily, be terminated
4.terminate
5.violate
6.violate
7.did
Explanation:
The summary of the the composition above is about thomas who worked for non military arm of his company. He was then transferred to the military arm that specialises in the production of equipments for war.
Thomas then felt this was against his religious beliefs, and he reacted by by resigning from hi job. He applied for unemployment compensation with state but was denied.
This is against the rights of individuals irrespective of there beliefs
the following answers should suffice for the questions.
1.beliefs, actions
2.continue, receive
3.quit voluntarily, be terminated
4.terminate
5.violate
6.violate
7.did
Answer: Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart F.
Explanation:
Subpart F income include insurance income, illegal bribes, foreign base company income, international boycott factor income, etc.
It should be noted that Windmill isn't a controlled foreign corporation that is the company isn't a corporate entity which is duly registered and then conducts business in another country that's different from its home country. Therefore, none of the shareholders will have a deemed dividend under subpart F.