1. Ruby enterprises Ltd. has long-term bonds worth $20 million, retained earning of $45 million, accounts payable of $10 million, notes payable of $12 million, and inventory worth $18 million. what is the value of total liabilities of ruby enterprises?
2. John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option was exercised was $1.32. Assume John bought the Euro from the market if the option was exercised. Also assume that there are 40,000 units in a Euro option. What was John’s net profit on the call option?