Joan works for Jefferson Movers in Alberta and earns an annual salary of $51,258.00 paid on a semi-monthly basis. She contributes 4% of her gross earnings to a Registered Retirement Savings Plan each pay. Joan pays $26.00 semi-monthly for union dues and receives a group term life insurance non-cash taxable benefit of $21.00 each pay. Her federal and provincial TD1 claim codes are 3 and she will not reach the annual maximums for Canada Pension Plan or Employment Insurance with this payment. Calculate Joan's net pay, following the steps in the payroll calculation template
Answers
The amount calculated after deducting taxes from a paycheck is called net pay.
Net pay = Gross pay - deductions (taxes, etc.)
To calculate Joan's net pay, we can follow these steps:
1. Calculate gross earnings: Since Joan earns an annual salary of $51,258.00 and is paid on a semi-monthly basis, we divide her annual salary by 24 (number of semi-monthly pay periods in a year). Therefore, her gross earnings per semi-monthly pay period are $2,135.75.
2. Calculate RRSP contribution: Joan contributes 4% of her gross earnings to her Registered Retirement Savings Plan (RRSP) each pay. To calculate this, we multiply her gross earnings by 4%: $2,135.75 x 4% = $85.43.
3. Subtract union dues: Joan pays $26.00 in union dues each pay. Therefore, we subtract this amount from her gross earnings after the RRSP contribution: $2,135.75 - $26.00 = $2,109.75.
4. Add non-cash taxable benefit: Joan receives a group term life insurance non-cash taxable benefit of $21.00 each pay. We add this amount to the previous result: $2,109.75 + $21.00 = $2,130.75.
5. Calculate federal and provincial tax deductions: To determine the tax deductions, we need to use Joan's TD1 claim codes. Since the claim codes are 3, the applicable federal and provincial tax rates will be applied. However, the question does not provide the tax rates, so we cannot calculate the exact deductions.
6. Subtract tax deductions: Subtract the total tax deductions (federal and provincial) from the previous result to find Joan's net pay.
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Related Questions
The critical difference in tort liability between the average person and skilled professionals is known as:_____.
Answers
The critical difference in tort liability between the average person and skilled professionals is known as the Standard Of Care.
Standard of Care: In establishing whether someone was negligent and potentially liable for a tort, the standard of care is a key notion. A person is accountable for negligence if they violate the standard that applies to them and their actions hurt another person.
TORT: A tort is a civil wrong for which a person is legally responsible. A tort is an act or omission that causes harm to another person.
The critical difference in tort liability between the average person and skilled professionals is known as the Standard Of Care.
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approximately 45 percent of the retail price of an average bottle of distilled spirits is earmarked for federal, state, or local taxes.T/F?
Answers
True, approximately 45 percent of the retail price of an average bottle of distilled spirits is allocated for federal, state, or local taxes.
It is true that a significant portion of the retail price of an average bottle of distilled spirits goes towards federal, state, or local taxes. These taxes are imposed on the production, distribution, and sale of alcoholic beverages and contribute to the overall price consumers pay at the retail level. The specific tax rates may vary depending on the jurisdiction and can include excise taxes, sales taxes, and other levies.
On average, these taxes can make up around 45 percent of the retail price, indicating a substantial portion of the cost is attributable to government taxes and fees.
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To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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Suppose the U. S. Dollar interest rate is 5% and the euro interest rate is 6%. Assume no transaction costs, fees, or commissions. In all markets, the spot rate for euros is $1. 25. You believe that in one year's time the spot rate for euros will be $1. 30. An investor would like to invest $100,000 for one year and is willing to take on risk for a higher return. I. How would you advise the investor? II. What if you are incorrect and the euro rate is lower? Calculate the "break-even" exchange rate: that is, an investment that returns the same as investing $100,000 at 5%
Answers
The euro spot rate is at or above €99,056.60 per $100,000, the investor would earn a higher return by investing in euros. If the euro spot rate is below this level, the investor would have been investing in dollars.
I. I would advise the investor to convert their $100,000 to euros at the current spot rate of $1.25 per euro and invest the euros in a euro-denominated investment with a 6% interest rate. After one year, the investor would have earned €6,000 in interest, which would be worth $7,800 at the expected future spot rate of $1.30 per euro. Converting the euros back to dollars at this spot rate would yield a total return of $107,800, which represents a 7.8% return on the initial investment.
II. If the euro rate is lower than expected, the investor's return will be lower than the 5% return they could have earned by investing in a dollar-denominated investment. To calculate the break-even exchange rate, we need to find the euro spot rate at which the investor's return would be equal to 5%.
Assuming the euro interest rate is still 6%, the break-even exchange rate can be calculated as follows:
\($100,000 × 1.05 = €x × 1.06\)
Solving for x, we get:
\(x = $100,000 × 1.05 ÷ 1.06 = €99,056.60\)
This means that if the euro spot rate is at or above €99,056.60 per $100,000, the investor would earn a higher return by investing in euros. If the euro spot rate is below this level, the investor would have been better off investing in dollars.
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technological advances allow smaller companies to compete with larger companies. group of answer choices true false
Answers
True, Technological advances allow smaller companies to compete with larger companies.
What is company?
A company is a legal entity created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate law of its jurisdiction, a company may be set up in a variety of ways for tax and financial liability reasons. The type of business structure a company chooses, such as a partnership, sole proprietorship, or corporation, will typically depend on the industry it operates in. The ownership structure of the business is also indicated by these structures. Additionally, they can tell private from public companies. Both have different ownership arrangements, laws, and rules regarding financial reporting.
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Suppose you purchased a stock a year ago. Today, you receive a
dividend of $19 and you sell the stock for $111. If your return was
9%, at what price did you buy the stock? $________.
Answers
You bought the stock for $82.83.
The price you bought the stock is $97.71. Here's how to get the answer:
Given that you received a dividend of $19 and you sold the stock for $111. The dividend and the selling price gives you a total return of $130 ($19+$111 = $130).The problem also gives a total return of 9% for the year using the formula:return = (ending price - beginning price) / beginning price * 1009% = ($111 - beginning price) / beginning price * 100Solve for the beginning price:
Beginning price = $111 / (1 + 0.09)Beginning price = $101.83The beginning price is $101.83. Now you can solve for the price you actually bought the stock by subtracting the dividend of $19 from the beginning price:Price bought = $101.83 - $19Price bought = $82.83
Therefore, you bought the stock for $82.83.
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beginning inventory is $20,000. purchases of inventory during the year are $100,000. ending inventory is $50,000. what is cost of goods sold?
Answers
Answer: $70,000
Explanation: Add ending + Beginning
The cost of goods sold as per the given data of inventories and purchases of inventory is $70,000 during the year.
What is inventory?The products, resources, and equipment that a company keeps on hand in advance of selling them to customers for a profit are referred to as inventory. One can fulfill the needs of your clients and can save money by using inventory management.
The inventory that appears at the beginning of the year refers to as the beginning inventory whereas the inventory which remains at the end of the financial year in business is referred to as the ending inventory.
The calculation for the cost of goods sold
beginning inventory = $20,000
ending inventory = $50,000
purchases of inventory = $100,000
COGS = the starting inventory + purchases – ending inventory
= (20,000+100,000)-50,000
= 120,000- 50,000
= 70,000
Therefore, the Cost of goods sold is $70,000.
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Mr. Coffey bought a house for $195,000. He made a 20% down payment. The interest
rate is 5.25% for 30 years. Use the loan payment calculator to answer the following
questions. (do not use commas or dollar signs in your answer)
What is his monthly payment?
Answers
Answer: $861.44
Explanation:
Given the following :
Purchase price = $195,000
down payment = 20%
Interest rate = 5.25%
Period = 30 years
Down payment = 0.2 × $195,000 = $39,000
Therefore, loan amount will be :
$(195,000 - 39,000) = $156,000
The payment per period (monthly payment) can be calculated using the annuity calculator.
Present value = $156,000
Number of periods = 30yrs = 30× 12 = 360 months
Interest = 5.25% / 12= 0.4375% = 0.004375
Future value = 0 (Amount when entire loan has been paid)
Therefore, the payment per period is $861.44 using the financial calculator.
What are some of the similarities and differences between the CTSOs of HOSA and Educators Rising? Please describe what makes these two organizations differ from each other.
Answers
Answer:
Similarities and differences between CTSOs of HOSA and Educators Rising are in Educators Rising you work with children and HOSA is for people who are interested in health science. Another difference is and a similarity is that neither are clubs but EdRising is an organization and HOSA is a tool.
Explanation:
What is the monthly payment on a $20,500 auto loan with 9% annual interest paid over 3 years? 658.19 651.89 669.58 689.51
Answers
The monthly payment on a $20,500 auto loan with 9% annual interest paid over 3 years is 651.89.
This calculation is based on the formula of taking the loan amount, interest rate, and number of payments, and then dividing by the number of payments to determine the monthly payment.
This formula takes into account the interest rate and the number of payments, which are both important for determining the monthly payment. An auto loan is an important financial decision, so it is important to understand the terms and repayment schedule before signing any agreement.
Taking the time to calculate the monthly payment can help ensure that the loan can be paid back in a manageable way. It is important to consider the financial consequences of taking on a loan and make sure that the monthly payment can be met without putting a strain on other financial obligations.
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Instead of writing a term paper, some people try to cheat and purchase one from a(n)?
Answers
Instead of writing a term paper, some people try to cheat and purchase one from a source that provides pre-written or custom-written papers. This is marketplace commonly referred to as academic dishonesty or cheating.
There are several sources from which people may try to purchase a term paper. One option is to buy a pre-written paper from an online database or marketplace that offers a wide range of essays and papers for sale. These platforms usually have a collection of papers on various topics, and customers can choose the one that best matches their requirements.
It is important to note that purchasing a term paper from any source and submitting it as one's own work is considered plagiarism and a violation of academic integrity. Academic institutions have strict policies against cheating, and the consequences can be severe, including failing the assignment, course, or even expulsion from the institution.
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William is single and had a taxable income from his position as Chief Financial Officer of Zippy Bank of $450,000. Later, he realized that he forgot to add $35,000 of dividend
income. What tax rate will apply to William’s dividend income? (for tax year 2020)
15%
20%
39.6%
33%
Answers
William's dividend income of $35,000 will be taxed at a rate of- B. 20%.
What is dividend income?Dividend income is a distribution of earnings paid by a corporation to its shareholders.
The amount distributed is a portion of the corporation's profit after taxes that has been set aside for distribution to its owners.
Dividend income is categorized as investment income, and it is taxed at a different rate than ordinary income in the United States.
What is the tax rate on dividend income for 2020?For tax year 2020, the tax rate on dividend income is determined by the taxpayer's taxable income, and there are three possibilities.
If the taxpayer's taxable income falls in the 10% or 12% ordinary income tax brackets, the tax rate on dividend income is 0%.
The tax rate on dividend income is 15% if the taxpayer's taxable income falls within the 22%, 24%, 32%, or 35% ordinary income tax brackets.
If the taxpayer's taxable income falls within the 37% ordinary income tax bracket, the tax rate on dividend income is 20%.
Hence, option b. is correct.
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What best describes the relationship between short and long-term goals?
Answers
which sentence written correctly
-He didn't have no money
-i didn't have no money
Answers
Answer:
To be honest none sound good, they should replace no with any, but if I'd have to choose it'd be the second one.
suppose that a european mnc has a dealer issue euro-commercial paper, on its behalf, to finance its debt. this example most closely resembles which of the following forms of financing? bank loans commercial paper internal control over funds short-term notes
Answers
The form of financing that closely resembles the given scenario is commercial paper. Commercial paper is a short-term debt instrument issued by companies to finance their immediate cash needs, and it is typically issued in large denominations by well-established companies.
In this case, the European MNC is using a dealer to issue Euro-commercial paper on its behalf to finance its debt, which is a form of commercial paper financing. Therefore, the answer is commercial paper.
Hi, I'm happy to help you with your question. Based on the given scenario, a European MNC has a dealer issue Euro-commercial paper on its behalf to finance its debt. This example most closely resembles the form of financing known as "commercial paper." Commercial paper is a short-term, unsecured debt instrument issued by corporations to meet their immediate financial needs.
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Which computer is the fastest to process complex data?
Answers
Supercomputers, the world's largest and fastest computers, are primarily used for complex scientific calculations.
Answer: D. 2.6 GHz processor, 8 GB RAM, 1 TB hard drive.
Explanation:
In Computer science, the processor speed of a computer can be defined as the number of cycles per seconds that the central processing unit (CPU) of a computer operates. The processor speed typically determines the number of information that a computer is able to execute per seconds. Therefore, the higher or faster the processor speed the faster the computer in processing complex data.
Generally, the processor speed of a computer is measured in megahertz (MHz) or gigahertz (GHz).
Additionally, Radom Access Memory (RAM) can be defined as the main memory of a computer system which allow users to store commands and data temporarily. RAM is measured in megabytes (MB) or gigabytes (GB).
Generally, the Radom Access Memory (RAM) is a volatile memory and as such can only retain data temporarily.
All software applications temporarily stores and retrieves data from a Radom Access Memory (RAM) in computer, this is to ensure that informations are quickly accessible, therefore it supports read and write of files.
Hence, the computer which is the fastest to process complex data is the 2.6 GHz processor, 8 GB RAM, 1 TB hard drive because of the higher processor speed and RAM size.
Problem 5-7 Analyzing Transactions
Answers
How did you establish trust with others? please provide a specific example that illustrates your approach. Why do you use this approach? how do you tailor your apporch to the individual and the situation?
Answers
Establishing trust with others can be a challenging task, but it is vital for building healthy relationships. One of the ways to establish trust with others is by being honest and transparent in your communication. When you are honest about your intentions and actions, people are more likely to trust you.
Another important aspect is being consistent in your actions and words. When you consistently demonstrate that you are reliable and trustworthy, people will feel more confident in your abilities and actions.
A specific example of establishing trust could be a situation where a team leader is trying to build trust with their team members. The leader can achieve this by setting clear expectations, following through on commitments, and being transparent in their decision-making process. By doing so, the leader can create a positive and trustworthy environment where team members feel valued and respected.
In tailoring your approach to the individual and situation, it is important to consider the person's personality, communication style, and values. By understanding their needs and expectations, you can create a more personalized approach that can help build trust and stronger relationships.
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Which of the following parts of a business plan include the cash flow projection and profit and loss projection?
Answers
Business description and structure. This is where you explain why you're in business and what you're selling. ...
Market research and strategies. ...
Management and personnel. ...
Financial documents.
Which of the following usually offers money market funds?
A. A credit card company
B. An investment company
C. A life insurance company
D. A finance company
E. A payday loan company
Answers
The best option that usually offers money market funds is an investment company. Option B
What is money market funds about?Money market funds are regularly advertised by venture companies. These companies pool reserves from person speculators and contribute them in short-term, low-risk money related rebellious such as Treasury bills, commercial paper, certificates of store, and other cash advertise rebellious.
The essential objective of money market funds is to supply speculators with a steady esteem of their venture whereas creating wage through intrigued installments. They are considered generally secure ventures due to the center on short-term, low-risk securities.
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What section of the economy is the largest employer
Answers
Answer: public schools in the us
Explanation: 6,646,292...
A corporation issued 3,600 shares of its no par common stock at a cash price of $14 per share. the entry to record this transaction would be:_________
Answers
A corporation issued 3,600 shares of its no par common stock at a cash price of $14 per share. the entry to record this transaction would be Date: [Date of the transaction] Cash $50,400, Common Stock (no par) $50,400
The entry debits the Cash account for the total cash received from the issuance of the shares, which is calculated by multiplying the number of shares (3,600) by the cash price per share ($14). The credit is made to the Common Stock (no par) account to represent the increase in equity due to the issuance of the shares.
This entry reflects the inflow of cash and the corresponding increase in shareholders' equity resulting from the issuance of the common stock. The no par common stock is recorded without assigning a specific par value to each share, and the entry captures the cash inflow associated with the issuance of the shares.
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if the price of papayas is 12 baht in thailand and the exchange rate is 30 baht per dollar, then what is the dollar price of papayas?
Answers
The dollar price of papayas is 0.4 dollars.To calculate the dollar price, we divide 12 baht by 30 baht per dollar
To calculate the dollar price, we divide 12 baht by 30 baht per dollar: 12 baht / 30 baht per dollar = 0.4 dollars To find the dollar price of papayas, we need to divide the price in Thai baht by the exchange rate. In this case, the price of papayas is 12 baht, and the exchange rate is 30 baht per dollar. To calculate the dollar price, we divide 12 baht by 30 baht per dollar: 12 baht / 30 baht per dollar = 0.4 dollars
Therefore, the dollar price of papayas is 0.4 dollars.
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ABC Company sold goods to XYZ traders on May 1, 2019. ABC company agreed to accept a Kshs.1,400,000 for 6 month, 12% note in payment for the goods. Interest is payable at maturity. Required: Prepare journal entries to record the above transactions
Answers
Answer: If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. You need enough money to cover your expenses until you get your next paycheck. Once you receive that paycheck, you can repay the lender the amount you borrowed, plus a little extra for the lender’s assistance.
There is an ebb and flow to business that can sometimes produce this same situation, where business expenses temporarily exceed revenues. Even if a company finds itself in this situation, bills still need to be paid. The company may consider a short-term note payable to cover the difference.
A short-term note payable is a debt created and due within a company’s operating period (less than a year). Some key characteristics of this written promise to pay (see (Figure)) include an established date for repayment, a specific payable amount, interest terms, and the possibility of debt resale to another party. A short-term note is classified as a current liability because it is wholly honored within a company’s operating period. This payable account would appear on the balance sheet under Current Liabilities.
Short-Term Promissory Note. A promissory note includes terms of repayment, such as the date and interest rate.
Explanation:
the pre-loan disclosure required for a va arm must include
Answers
The pre-loan disclosure required for a VA ARM (Adjustable Rate Mortgage) must include information about the specific features and terms of the loan, such as the initial interest rate, adjustment frequency, index, margin, and caps.
The pre-loan disclosure for a VA ARM is an important document that provides borrowers with key information about the adjustable rate mortgage they are considering. It aims to ensure transparency and allow borrowers to understand the potential risks and costs associated with the loan.
The specific details that must be included in the pre-loan disclosure for a VA ARM are as follows:
1. Initial Interest Rate: The disclosure should state the initial interest rate that will be charged on the loan. This rate is typically fixed for an initial period before it starts adjusting based on the terms of the ARM.
2. Adjustment Frequency: The disclosure should specify how frequently the interest rate can change. Common adjustment periods for ARMs are annually (every year), biennially (every two years), or monthly.
3. Index: The disclosure should identify the index that will be used to determine future interest rate adjustments. Common indices include the U.S. Treasury Index or the London Interbank Offered Rate (LIBOR).
4. Margin: The disclosure should state the fixed amount that will be added to the chosen index to calculate the new interest rate at each adjustment period. The margin is set by the lender.
5. Caps: The disclosure should include information about the maximum amount the interest rate can increase or decrease at each adjustment period and over the life of the loan. There are typically limits known as periodic caps and lifetime caps.
The pre-loan disclosure for a VA ARM is a critical document that provides borrowers with important details about the adjustable rate mortgage they are considering. By including information about the initial interest rate, adjustment frequency, index, margin, and caps, borrowers can make informed decisions and understand the potential risks and costs associated with the loan.
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9What is an example of a formal closing? ALove, incorrect answer BSee you later, incorrect answer CYours truly, incorrect answer DTill then, incorrect answer 9 of 10
Answers
Answer:
C Yours truly
Explanation:
For closing the formal letter, we write off the format closing at the bottom of the page
Like
Yours sincerely
Thanks & regards
Your truly
Best regards, etc
This should represent the respect of a person and the writing way to write out a letter
Therefore in the given case, the option C is correct i.e. C yours truly
Answer:
D
Explanation:
DDDDDDDDDDDDDDd
a) A man has $4.55 in change composed entirely of dimes and quarters. What are the maximum and minimum number of coins that he can have? Is it possible for the number of dimes to equal the number of quarters? (b) The neighborhood theater charges $1.80 for adult admissions and $.75 for children. On a particular evening the total receipts were $90. Assuming that more adults than children were present, how many people attended? (c) A certain number of sixes and nines is added to give a sum of 126; if the number of sixes and nines is interchanged, the new sum is 114. How many of each were there originally?
Answers
The man has a minimum of 14 coins and a maximum of 50 coins. It is not possible for the number of dimes to equal the number of quarters.
Let's assume the number of adult admissions is x and children's admissions is y. Therefore, the number of adults was greater than the number of children, and the total receipt was $90. Also, the theater charges $1.80 for adult admissions and $.75 for children.
Now, as per the given data, we can form two equations:
x + y = the total number of people (equation 1)$
1.80x + $0.75y = $90 (equation 2)
To solve these equations, we can multiply equation 1 with 1.80 and subtract it from equation 2.
Let's solve the equation:
(1.80x + 1.80y) - (1.80x + 0.75y) = 90 - (1.80 × total number of people)y = 3.6(total number of people - 50)
As the number of adults is greater than children,
the value of x is greater than y.
Also, the number of attendees cannot be a fraction, so we can try different values of y to find a suitable value that satisfies both the above conditions.
By substituting the value of y in equation 1, we can calculate the value of x.
Let's try different values of y:
y = 1, then x = 89y = 2, then x = 88y = 3, then x = 87y = 4, then x = 86
From the above calculations,
it is evident that y = 4, and x = 86 satisfy both conditions.
Hence, 86 adults and 4 children attended the show.
c)There were 45 sixes and 81 nines originally.
The steps to solve this problem are as follows:
Let the number of sixes is x and the number of nines be y.
Therefore, x + y = 126 (equation 1)6x + 9y = 1260 (equation 2)Dividing equation 2 by 3,
we get,2x + 3y = 420 (equation 3)Multiplying equation 1 by 2 and subtracting it from equation 3, we get:
y = 54Substituting the value of y in equation 1,
we get:
x + 54 = 126
Therefore, x = 72
Hence, there were 72 sixes and 54 nines originally.
If the number of sixes and nines is interchanged, the new sum is 114. Therefore, the number of sixes and nines interchanged were 54 and 72, respectively.
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According to the put-call parity theorem, the payoffs associated with ownership of a call option can be replicated by A. shorting the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price B. buying the underlying stock, borrowing the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price C. buying the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price D.shorting the underlying stock, lending the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price
Answers
According to the put-call parity theorem, the payoffs associated with ownership of a call option can be replicated by option positions and cash flows.
Option A: Shorting the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price.
Option B: Buying the underlying stock, borrowing the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price.
Option C: Buying the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price.
Option D: Shorting the underlying stock, lending the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price.
Among these options, Option A is the correct replication strategy according to the put-call parity theorem. By shorting the underlying stock, borrowing the present value of the exercise price, and writing a put option, an investor can create a portfolio that replicates the payoffs of a call option.
Therefore, the correct answer is Option A: Shorting the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price.
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A supplier in the country of Whiteland has current output of 10 Million units priced at
$1.10 per unit. Factor prices rise and costs increase to $1.30 per unit. Uh-oh... now not earning profit and producing for a $20 Million loss. The availability of competitor substitutes convince the supplier a price increase is out of the question.
A purchasing agent from the country of Knightland makes a timely appearance and offers to purchase for import an additional 10 Million units priced at $0.80 per unit.
1. Do you take the deal?
2. What principle/s do you apply to make your decision?
3. What is the size of the opportunity, if-any?
Answers
Yes, the deal should be taken. The principle of marginal analysis should be applied to make the decision.
Marginal analysis involves comparing the additional cost and revenue of a decision to determine if it is profitable or not. In this case, the supplier is currently producing 10 million units at a cost of $1.30 per unit, resulting in a loss of $20 million.
By accepting the offer to sell an additional 10 million units at $0.80 per unit, the supplier can increase revenue by $8 million while keeping the cost of production at $1.30 per unit. Therefore, the principle of marginal analysis supports the decision to take the deal.
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which attribute in perfect competition makes it so firms will make zero economic profit in the long run?
Answers
In perfect competition, the attribute that leads to firms making zero economic profit in the long run is known as "free entry and exit."
This condition implies that there are no barriers to entry or exit in the market, allowing new firms to enter the industry and existing firms to leave if they are not earning economic profits.
In the long run, in a perfectly competitive market, firms will earn enough revenue to cover all their costs, including opportunity costs of production. However, they will not earn any additional profit above and beyond that. If firms were earning positive economic profits in the short run, the entry of new firms into the market will erode those profits until they reach zero in the long run.
This zero economic profit condition in perfect competition serves as a key feature that promotes efficiency in resource allocation. It ensures that firms are producing goods or services at their lowest possible cost, with no excess profit signaling that resources are being used efficiently and in line with consumer demand.
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