1. Purple Feet Wine receives an average of $218,400 in checks per day. The delay in clearing is typically 2.6 days. The current interest rate is .0085 percent per day. Assume each month has 30 days. What is the highest daily fee the company should be willing to pay to eliminate its float entirely?
1.$51.50
2.$43.20
3.$33.75
4.$48.27
5.$36.50
2. Which of the following statements about option contracts is correct?
A) The option holder has the right to exercise the option.
B) Option contracts can create a legal right to buy a commodity.
C) Option contracts can create a legal right to sell a financial asset.
D) All of the above are correct.