Corn call options with a $1.75 strike price are trading for a $0.14 premium. Farmer Jayne decides to hedge her 20,000 bushels of corn by selling short call options. Six-month interest rates are 4.0% and she plans to close her position in 6 months
What is the total premium she will earn on her short position?
A) $2,800
B) $2,912
C) $800
D) $1,600
B
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Targeting Northern states in the United States for sales of snow skis is an example of which type of segmentation?
A) demographic B) geographic C) benefit D) geodemographic
The existence of fair value estimates that are unreasonable or unsupportable is indicative of a potential fraud scheme
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
a. The break-even point will increase if fixed cost increase. b. C-V-P analysis cannot be used to determine the activity level needed to achieve a certain amount of profits. c. C-V-P analysis can be used to determine the level of activity needed to achieve a specific before tax profit. d. Managers often want to include taxes in their analysis in order to determine an after tax level of income.
Griffith Manufacturing ships 40 crates of goods by Trusty Shipping, a common carrier. Trusty offers Griffith a shipping rate of $725 for a limited liability of $5,000 or a rate of $975 for full liability for any harm to the goods. Griffith chooses the $725 rate. In transit, Trusty's driver has an accident during an ice storm and all of Griffith's goods are destroyed, causing a loss of $12,000
If Griffith sues Trusty, a. Trusty will be liable for only $5,000 because a common carrier is allowed to limit its liability by contract. b. Trusty will be liable for the full $12,000 because common carriers have strict liability. c. Trusty will automatically be liable for the full $12,000 under the Carmack Amendment. d. Trusty is subject to normal bailment rules and can escape liability for any damage to the goods by proving that it exercised due care of the property and that the loss was caused by an act of God.