You have purchased one call option expiring in one year with a strike price of $40. The current price of the underlying is $30, the interest rate is zero, and the premium for the call option is $2.63. 1) Draw the payoff and P&L diagrams for the call option at expiration.
2) What is the P&L on the option at expiration if the underlying is $57.50 (i. e. S1 = 57.5)?

Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:

Opportunity cost is calculated by which of the following? a. adding the value of all lost opportunities. b. subtracting all costs from the total benefit. c. calculating the cost of time, energy, and sacrifice. d. finding the value of the best option that is not chosen.