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2 years ago

The buyer of a put expects the price of the underlying stock to rise. a. true b. false

Business

1 answer:

hoa [83]2 years ago

6 0

The buyer of a put expects the price of the underlying stock to rise is a. true

<h3>What does buying a put mean?</h3>

Short selling and put options are fundamentally negative methods used to speculate on the underlying securities or index's possible decline.
Short selling and buying put options are both bearish techniques that increase in profitability when the market falls.
Short selling is selling a security that the seller does not own but borrows and then sells in the market, with the possibility for substantial losses if the market rises.
Purchasing a put option grants the buyer the right to sell the underlying asset at the price specified in the option, with the maximum loss being the option premium paid.

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Suppose that the adult population in the country of Atlantis is 140 million. If 90 million people are employed and 10 million ar

Lelu [443]

Let's assume that Atlantis has 140 million adult residents. If there are 90 million employed people and 10 million unemployed people, that leaves 40 million people out of the labor force.

What does the term "labor force" mean?

All people who meet the criteria for inclusion among the employed or unemployed make up the labor force, also known as the population that is currently engaged in labor-force activities. The term "employed" refers to people who work for pay or profit at least one hour per week or who hold a job but are momentarily off the clock due to illness, vacation, or a strike. The armed forces include anyone who served in the armed forces during the time in question, whether they were stationed in the metropolitan territory or elsewhere, and was selected from the pool of all workers available.

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1 year ago

Which of the following would be considered the highest risk portfolio? AA portfolio made up of 20% savings accounts, 50% mutual

Vlad [161]

Answer

C. A portfolio made up of 60% stocks, 30% mutual funds and 10% Treasury bonds.

Explanation

In this option, the investment is more than 50% for the money placed in stocks and the prices for stock keep on fluctuating on daily basis. This is a highly risky investment though investments in stock can give a good return. To safeguard the amounts that were saved, a person has to avoid putting more investments on stock.

7 0

4 years ago

Read 2 more answers

Everything else held constant, the vertical section of the supply curve of reserves is lengthened when the A. federal funds rat

lbvjy [14]

Answer: The correct answer is "C. discount rate increases.".

Explanation: If everything else held constant, the vertical section of the supply curve of reserves is lengthened when the discount rate increases.

This occurs because the discount rate is the interest rate at which the Central Bank is willing to lend reserves to commercial banks.

8 0

3 years ago

The bases for an action in strict liability that are set forth in the Restatement (Second) of Torts Section 402A can be summariz

Alinara [238K]

Answer:

The answer is: NO OPTION IS COMPLETE

Explanation:

Option A is totally wrong (the product should have been defective), but options B through F are incomplete.

They should have been:

B) The defendant must normally be engaged in the business of selling (or otherwise distributing) that product.

C) The product must be unreasonably dangerous to the user or consumer because of its defective condition (in most states).

D) The plaintiff must incur physical harm to self or property by use or consumption of the product.

E) The defective condition must be the proximate cause of the injury or damage.

F) The goods must not have been substantially changed from the time the product was sold to the time the injury was sustained.

8 0

4 years ago

Five independent projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public

Alex777 [14]

Answer:

the correct answer is option (b).

Explanation:

Equivalent annual benefits and annual cost of each project is provided.

Calculate B-C ratio of project A -

Annual benefits = $1,800,000

Annual costs = $2,000,000

B-C ratio = Annual benefits/Annual costs = $1,800,000/$2,000,000 = 0.90

The B-C ratio of Project A is 0.90.

Calculate B-C ratio of project B -

Annual benefits = $5,600,000

Annual costs = $4,200,000

B-C ratio = Annual benefits/Annual costs = $5,600,000/$4,200,000 = 1.33

The B-C ratio of Project B is 1.33.

Calculate B-C ratio of project C -

Annual benefits = $8,400,000

Annual costs = $6,800,000

B-C ratio = Annual benefits/Annual costs = $8,400,000/$6,800,000 = 1.24

The B-C ratio of Project C is 1.24.

Calculate B-C ratio of project D -

Annual benefits = $2,600,000

Annual costs = $2,800,000

B-C ratio = Annual benefits/Annual costs = $2,600,000/$2,800,000 = 0.93

The B-C ratio of Project D is 0.93.

Calculate B-C ratio of project E -

Annual benefits = $6,600,000

Annual costs = $5,400,000

B-C ratio = Annual benefits/Annual costs = $6,600,000/$5,400,000 = 1.22

The B-C ratio of Project E is 1.22.

It has been stated that the agency is willing to invest money in any project as long as the B-C ratio is at least one.

The B-C ratio of project A and D are less than 1. So, they will not be considered.

Out of remaining three project, B-C ratio is highest in the case of Project B.

So, Project B will be selected.

Hence, the correct answer is option (b).

7 0

4 years ago