Answer: $23571
Explanation:
For this question, we have to calculate the present value of $27,000 with the given rate and the time that have already been given in the question to know the worth tiday. This will then be:
= $27,000 x PVIF (7%, 2)
= $27,000 x 0.873
= $23,571
Answer:
The correct answer is a. buyers will go elsewhere.
Explanation:
This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.
Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>
Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;
However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.
Answer:
-$11
Explanation:
Covered Call involves Buy stocks and Sell call options
Earning $2.89 by selling call. So, at stock price of $27, the payoff from options is $2.89 per option
Options Profits = $2.89 * 100
Options Profits = $289
Profit of stock = ($27 - $30) * 100
Profit of stock = -$300
Investor Net Profit = Profit of stock + Options Profits
Investor Net Profit = -$300 + $289
Investor Net Profit = -$11
Answer:
D. Primary
Explanation:
The newly issued securities are first sold to the investors of the primary market .
The primary market id responsible for issuing the securities for the exchange of the company , or other groups .
The primary market are run by the underwriting groups which includes the investment banks .
Hence , from the information of the question , the correct term is ( d. ) Primary market .
