On December 1, 20x1 Pimlico Made Sales to a Customer

question 55

Multiple Choice

On December 1, 20x1 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10,000,000 rupees. The customer has until March 1, 20x2 to pay. On December 1, 20x1, Pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on March 1, 20x2, which was the spot rate on December 1, 20x1. On December 31, 20x1, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees.
-What is the fair value of the option on December 31, 20x1?

• A)$0
• B)$500
• C)$400
• D)$10,000

Recognize biological and social risk factors as well as protective factors related to substance-use disorders.

Apply the DSM-5 criteria to assess substance-use disorders in individuals.

Acquire skills in gathering comprehensive substance use histories from clients.

Conduct effective mental status assessments for clients under the influence of substances.

---

Definitions:

Cost Of Capital

The rate of return a company must offer investors to entice investment in the company, reflecting the risk of investing in the firm.

Capital Asset Pricing Model

A framework detailing how expected returns on assets, especially stocks, correlate with systematic risk.

Accounting Beta

A measure of the sensitivity of a firm's earnings before interest and taxes to changes in the market as a whole.

Pure Play Method

A valuation method focusing on companies specializing in a single line of business to estimate investment risks and returns.