Answer:
Answer is D. I, II, and III
Refer below.
Explanation:
You own $75,000 worth of stocks, and you are worried the price may fall by year end in 6 months. You are considering using either puts or calls to hedge the position. Given this, the following statements are correct:
I, II, and III
Answer:
Imagination Station is engaging in Vertical Integration.
Explanation:
Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.
In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.
Equilibrium price will fall; equilibrium quantity will fall.
What does Equilibrium price mean?
An Equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal.
The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.
What is Equilibrium quantity?
Equilibrium quantity is when there is no shortage or surplus of a product in the market.
Supply and demand intersect, meaning the amount of an item that consumers want to buy is equal to the amount being supplied by its producers.
Learn more about Equilibrium price and quantity here:
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Answer:
Explanation:
Victor's recognized gain equals to zero, because this exchange qualifies under Sec. 368 as a tax-free reorganization.