Answer:
The correct answer is C) purchase Canadian dollar put options.
Explanation:
A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.
The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.
Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.
$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. The total return to George from owning the stock would be 20% (after rounding off the answer to the nearest whole percent).
- Total return on share is the summation of dividend and price appreciation.
- Since, the dividend = $2.25
- Then, to ascertain price appreciation we need to subtract the dividend from the total return on the share.
- Price appreciation = $70 - $60 = $10
- Total return can be calculated hence.
- Total return = $10 + $2.25 = $12.25
- Therefore, the total return for George was $12.25.
- To round off the answer to the nearest whole percentage:
- Total return percent = $12.25/$60 = 20% approximately
Therefore, the total return to George from owning the stock would be 20%.
Learn more about total returns here:
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Answer:
Explanation:
Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively
Bad way: paying your balances late or not at all is bad for your credit.
