Answer: 20 contracts
Explanation:
It should be noted that each OEX 600 Put contract will cover:
= 100 × 600
= $60,000 of stock
Therefore, to hedge $600,000 portfolio, ($600,000/$60,000) = 10 contracts will be needed.
Since the portfolio has a beta of 2, this means that:
=2 x 10 contracts
= 20 contracts will be needed.
The growth of the service economy caused b) a decrease in new small business, while it did not cause an increase in American blue-collar jobs, in worldwide average wages, and a decline in US union membership.
Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
Answer:$4.44
Explanation:
Net income after tax is $600,00 less 20% =$480,000
Total shares for diluted eps 90,000+18,000= 108,000
Diluted eps= 480,000/108,000
= $4.44
.