Answer:
Technical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal SkillsTechnical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...
Conceptual Skills These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. ...
Human or Interpersonal Skills:
Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.
Answer:
A
Explanation:
Long term debt is debt that has a maturity that is longer than a year.
The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.
firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.
use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
Common stock holders: Group of answer choices have one vote in the election of how the company operates. are last in line to receive income. are guaranteed to get paid when the company fails. receive income before preferred stockholders.
Answer:
are last in line to receive income.
Explanation:
Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.
However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.
Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.
Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000. This bond matures in one year. Currently, U.S. Treasury bills are yielding 5.5 percent. What is the value of the equity in this firm
Answer:
$7.24
Explanation:
PV at the risk free rate = $1,900 / (1 + 0.055)
PV at the risk free rate = $1,900 / 1.055
PV at the risk free rate = $1,800.95
Number of options needed = (2,400 - 1,900) / (400 - 0)
Number of options needed = 500 / 400
Number of options needed = 1.25
Total assets = (No of options needed*Value of equity) + Present value at the risk free rate. Let Value of equity be C0
$1,810 = (1.25*C0) + $1,800.95
$1,810 - $1,800.95 = 1.25*C0
C0 = $9.05 / 1.25
C0 = $7.24
So, the Value of equity in this firm is $7.24.
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
The following statements describe why profits for firms in a perfectly competitive industry tend to vanish in the long run. Select the explanation that most accurately reflects this scenario?
A) Firms try to increase supply to cover their costs if they experience losses, and this leads to zero profits.
B) Firms are unable to generate revenue over time because the demand for products drops.
C) When other perfectly competitive firms see an opportunity to earn profits and enter the market prices drop.
D) When other perfectly competitive firms see an opportunity to earn profits and enter the market, prices rise.
Answer:
The correct answer is the option C: When other perfectly competitive firms see an opportunity to earn profits and enter the market the prices drop.
Explanation:
To begin with, in the microeconomics theory the perfect competitive market is characterized by the fact that there a lot of companies that sell an homogenous product and that are price takers of the market itself. So therefore that the only big difference in the firms are the costs and the prices that they have. Moreover, in the long run the firms are obtaining great profits so that leads to the enter of another more companies to the market and the supply rises the prices will have to go low so that will implicate as well a decrease in the prices of every company that now works in that industry.
Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices
Answer:
Net income from operating activities = $77000
Explanation:
Below is the calculation for Net income from operating activities:
Given the net income = $60000
Decrease in accounts receivable = $8000
Increase in accounts payable = $4000
Depreciation = $5000
Add the values in the net income in order to get the net income from operating activities.
Net income from operating activities = 60000 + 8000 + 4000 + 5000
Net Income from operating activities = $77000
You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis.
Owner's beginning stock basis $36,800
Increase in AAA 32,000
Increase in OAA 6,300
Payroll tax penalty 2,140
Tax-exempt interest income 4,800
Life insurance premiums paid (nondeductible) 2,700
Owner's purchases of additional stock 22,000
Answer:
$74,120
Explanation:
Preparation of her ending stock basis
ENDING STOCK BASIS:
Beginning stock basis $36,800
Add:Increase in AAA $12,800
(.40 * $32,000)
Add:Increase in OAA $2,520
(.40 * $6,300)
Add:Stock purchase $22,000
Total Ending stock basis $74,120
Therefore her ending stock basis is $74,120
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,600 cash dividend was debited to Common Stock for $1,600 and credited to Cash for $1,600. 5. A $450 purchase of supplies on account was debited to Equipment for $450 and credited to Cash for $450. 6. A cash payment of $530 for advertising was debited to Advertising Expense for $53 and credited to Cash for $53. 7. A collection from a customer for $540 was debited to Cash for $540 and credited to Accounts Payable for $540. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)
Answer:
Debit side $29,660
Credit side $29,660
Explanation:
Preparation of a correct trial balance
DOMINIC COMPANY
Corrected Trial Balance May 31, 2015
DEBIT SIDE
Cash $5,023
($5,050 +$450 - $477)
($530-$53=$477)
Accounts Receivable $2,030
($2,570 - $540)
Prepaid Insurance $930
($830 + $100)
Supplies $450
Equipment $12,750
($13,200 - $450)
Salaries and Wages Expense $4,530
($4,330 + $200)
Advertising Expense $1,447
($970 + $477)
($530-$53=$477)
Utilities Expense $900
($800 + $100)
Dividends $1,600
TOTAL $29,660
CREDIT SIDE
Accounts Payable $5,510
($5,700 - $100 + $450 - $540)
Unearned Service Revenue $690
Common Stock $14,500
($12,900 + $1,600)
Service Revenue $8,960
TOTAL $29,660
Therefore the CORRECTED TRIAL BALANCE will be:
Debit side $29,660
Credit side $29,660
Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term risk-free government bonds were yielding 8.7 percent at the time. The current risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the risk-free long-term government bonds are currently yielding 7.8 percent, then at what interest rate should Rolling Coast expect to issue new bonds
Answer: 9.2%
Explanation:
The interest rate that Rolling Coast should expect to issue new bonds will be calculated thus:
Firstly, we will calculate the previous risk premium on BBB bonds which will be:
= 11.5% - 8.7% = 2.8%
Then, the new risk premium on BBB bonds will be:
= Previous risk premium / 2
= 2.8% / 2
= 1.4%
Then, the interest rate that Rolling Coast should expect to issue new bonds will be:
= 7.8% + 1.4%
= 9.2%
Operating Cash Flows (Direct Method)
Refer to the information in Exercise EB-31. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.
Answer:
The method to calculate Cash Flow from Direct Method is explained as follows:
Explanation:
The method to calculate Cash Flow from Direct Method is explained as follows:
Cash Flows
Direct Method
+ Cash received from Customer
- Cash paid to suppliers
- Cash payments for operating expenses
- Cash payments for interest
- Cash payments for taxes
= Net Cash flow from Operating Activities.
Which type of communication technology is attractive to businesses
because it eliminates travel expenses by allowing simultaneous
communication globally?
O Groupware
Extranets
Intranets
Hotspots
Client-server networks
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
The allowable increase for a constraint is Group of answer choices how much resource to use to get the optimal solution. the amount by which the resource can increase given shadow price. how many more units of resource to purchase to maximize profits. the amount by which the constraint coefficient can increase without changing the final optimal value.
Answer: the amount by which the resource can increase given shadow price.
Explanation:
The allowable increase refers to the amount by which the coefficient of the objective function can be increased without bringing about a change in the optimal basis.
The allowable increase for a constraint is the amount by which the resource can increase given shadow price. Therefore, the correct option is B.
For years, Luke has had the idea of making his own business. As Luke will realize, he will face three basic economic questions. What are these questions?
a. When, How, For whom
b. Who, when, why
c. What, How, for whom
d. What, When, How
g e-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix? A. absolute advantage B. collective bargaining C. comparative advantage D. competitive advantage
Complete Question:
Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions.
Answer:
C. comparative advantage
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
Generally, comparative advantage gives a country or business firm a stronger sales margin than their competitors because they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Hence, the term which best describes Futura-Core's abilities in comparison to Core-Dynamix is comparative advantage.
Complete each statement with the term that correctly defines each platform strategy advantage.
Platform businesses tend to frequently ____________ pipeline businesses.
Platforms scale more efficiently than pipelines by eliminating __________
Platform businesses _________ digital technology can grow much faster
Answer:
Note See full and organized question in the attached picture below
1. Platform businesses tend to frequently outperform pipeline businesses.
2. Platforms scale more efficiently than pipelines by eliminating gatekeepers.
3. Platform businesses leveraging digital technology can grow much faster.
4. Platforms unlock new sources of value creation and supply.
5. Feedback loops from consumers to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center
Answer:
Influencer
Explanation:
An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.
They have good social relations and this is an asset in directing customer buying decision.
In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.
This knowledge will be beneficial in the buying centre, where she can be an influencer.
Suppose that the price of a cupcake is $4. At this price, 50 cupcakes will be demanded. If the price rises to $5 per cupcake, consumer surplus will
Answer: fall by less than $50.
Explanation:
The options are:
• fall by more than $50.
• fall by less than $50.
• rise by less than $50.
• rise by more than $50.
Expert Answer
Consumer surplus, is referred to as the economic measure of the excess benefit that a customer gets. The consumer surplus is the difference between the amount that the customer is willing to pay and the amount that he or she eventually pays.
Based on the question, the total Price paid is: 50 × $4 = $200
Total Revised Price = 50 × $5 = $250
Therefore, there will be a fall by $50 that's ($250 - $200).
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
Danielle has loaned $500 to Richard at a 4% annual rate of interest for one year. If the inflation rate is constant at 7% for the entire term of the loan, how much purchasing power is lost after Richard repays the loan in full
Answer:
$15
Explanation:
In order to calculate the purchasing power lost the following formulae will be used:
Purchasing power lost = Loaned amount * (inflation rate - nominal rate)
Purchasing power lost = $500 * (0.07 - 0.04)
Purchasing power lost = $500 * 0.03
Purchasing power lost = $15
Hence, the purchasing power lost after Richard repays the loan in full is $15.
Installing an automated production system costing $300,000 is initially expected to save Zia Corporation $52,000 in expenses annually. If the system needs $7,500 in operating and maintenance costs each year and has a salvage value of $30,000 at year 10, what is the IRR of this system
Answer:
8.87%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300,000
Cash flow each year from year 1 to 9 = $52,000 - $7,500 = $44500
Cash flow in year 10 = $44500 + $30,000 = $74500
IRR = 8.87%
To determine the value of IRR 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.
If Fees Earned has been credited, it is most likely that:
A. a correcting entry for the overstatement of revenue was recorded. B. a customer paid in advance
C. services were provided.
D. the owner made an investment.
Answer:
C. services were provided.
Explanation:
If Fees Earned has been credited, it is most likely that: "services were provided."
For fees to be earned it means something must have been done in exchange for the fee. Considering this is a business-related issue, then it is correct to conclude that "If Fees Earned has been credited, it is most likely that: services were provided."
Option A is not correct because the overstatement of revenue is not related to the fee warmed being credited.
Option B is not correct, because a payment made in advance does not correlate to a fee earned. Option D is not correct as well, because an investment has nothing to do with a few earned.
A dispute between labor and management at an automobile production plant has effectively stopped production for 2 months and has cost the company a tremendous amount of money. Despite the use of third parties, neither side can agree on a solution, but they do agree that the dispute must be settled soon. How should this dispute at this stage be settled
Answer:
Arbitration
Explanation:
The arbitration process seems to be the best way to make the settlement process happen in this case. The arbitration process will be between labor and management as an impartial third party (arbitrator or arbitral tribunal) takes charge of the process. Once both parties have agreed to arbitraueb, the arbitrator then proffers powerful ways of ensuring dispute resolution in such a way that a mutual agreement is reached by both labor and management. Even though proferred solution shouldn't be compulsorily adopted by the conflicting parties.
In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is: __________
a. the price level is flexible no foreign sector
b. the price level is constant until
c. the economy reaches its full-employment level
d. the money supply always rises b and c
Answer: B and C
No foreign sector
The price level is constant until the economy reaches its full-employment level
Explanation:
Keynesian economics refers to the theory that relates to total spending in the economy and how it affects output, Inflation and employment in the economy.
Assumptions of the Keynesian Model include:
• No foreign sector as economy is closed.
• Demand creates its own supply.
• The aggregate price level is fixed. ...
• The price level is constant until the economy reaches its full-employment level
• No retained earnings etc.
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 200,000 Fixed manufacturing overhead cost $ 2,800,000 Variable manufacturing overhead cost per machine-hour $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with respect to this job: Direct materials $ 1,472 Direct labor cost $ 1,056 Machine-hours used 79 Compute the total manufacturing cost assigned to Job P90.
Answer:
the total manufacturing cost assigned to Job P90 is $3,792
Explanation:
The computation of the total manufacturing cost assigned to Job P90 is given below:
But before that the predetermined overhead rate should be calculated
So,
= ($2,800,000 ÷ 200,000) + $2
= $16
Now the total manufacturing cost is
= $1,472 + $1,056 + 79 × $16
= $3,792
hence, the total manufacturing cost assigned to Job P90 is $3,792
The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________
Answer:
Written off = $17,200
Explanation:
Allowance for Bad Debt Account
Debtors (Write off) (Bal. fig) $17,200 Beginning Bal. $10,600
Bad debt expense $18,800
Ending Balance $12,200
Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.
Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $219,017 and average assets of $1,413,720. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $36,220 more than under FIFO, and its average assets would have been $31,640 less than under FIFO.
Required:
Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO).
Answer:
a) Under the FIFO method:-
ROI = 15.49%.
Under LIFO method:-
ROI = 13.2%
Explanation:
ROI = Net Income * 100 / Avverage assets.
a) Under the FIFO method
[tex]ROI= \frac{219017*100}{1413720} \\ROI = 15.49[/tex]
ROI = 15.49%.
Under LIFO method
[tex]ROI= \frac{182797*100}{1382080} \\ROI=13.2%[/tex]
ROI = 13.2%
Net income Under LIFO= Net income under FIFO-Increased cost of goods sold
= $219017-$36,220= $182797.
Average assets under LIFO= Average assets under FIFO-Average assets that are less under LIFO
= $1413720 - $31,640= $1382080.
Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 units in a GBP options contract. At the time of the option expiration date, the spot price for GBP was $1.885. What was the net profit/loss on this option to the investor?
a. $203.125
b. $671.8750
c. $468.75
d. $1,140.625
Answer:
a. $203.125
Explanation:
Calculation to determine the net profit/loss on this option to the investor
Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)
Net profit/loss=(0.015-0.0215)*31,250
Net profit/loss=0.0065*31,250
Net profit/loss=$203.125
Therefore the net profit/loss on this option to the investor will be $203.125
