Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract
Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another studio where they had to settle for $150,000 as the chips were now only suitable for specific audio engineering processes.
What legal action can Klint take against Zeitar?
A) sue and recover lost profits
B) sue to recover purchase price
C) get a court order asking for specific performance
D) exercise the buyer's right to cover
A
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If a firm has a 2 million shares outstanding and its stock trades at $25 per share, the company also has $10,000,000 in debt. The company's market capitalization is
A) $40,000,000. B) $49,000,000. C) $50,000,000. D) $60,000,000.
Assume S = $43, K = 45, div = 0.0, r = 0.09, ? = 0.36, and 90 days until expiration. What is the premium on an Asian average strike put where N = 3?
A) $0.26 B) $0.36 C) $0.46 D) $0.56