Answer: False
Explanation:
If you want to hedge the risk of owning the stock then that would mean that you want to take measures to ensure that you don't lose out if prices fall.
A call option is not the way to do this because call options are bought with the expectations that prices will go up. If you buy call options then and the prices fall, you would make a loss on both the call options and the stock that you own.
A good way to hedge this would be to take Put options on the stock. Put options help you benefit if prices fall because you would be allowed to sell at a certain price unaffected by the fall in prices.
Answer:
c
Explanation:
Bundling is when separate products of a company are combined together and sold to customers usually at a lower price
Answer:
a. $173
Explanation:
The computation of the amount of interest earned in five years is shown below;
But before that following calculations need to be done
As we know that
Simple interest = Present value × rate of interest × time period
= $2,500 × 8% × 5
= $1,000
Now the future value is
Future value = Present value × (1 + rate of interest)^number of years
= $2,500 ×(1 + 8%)^5
= $2,500 × 1.4693280768
= $3,673
Now the compound interest is
Compound interest = Future value - Present value
= $3,673 - $2,500
= $1,173
Now interest on interest is
Interest on interest = Compound interest - Simple interest
= $1,173 - $1,000
= $173
<span>These would be work in-progress inventory. They are further along in production than the basic raw materials, but are not completed to the point where they could be put out for sale as finished goods. They are still requiring some work to get to this point.</span>
