<span>During the recession witnessed in early 2001, many firms laid off their employees and downsized. The reason for the downsizing of employees from these firms in 2001 was the incompetency and poor performance of the employees. It may sound mean but to the company, this is advantageous since they can reduce the costing while at the same time maintain or increase the final goods.</span>
Answer:
Option D is correct option.
<u>Short call and long put</u>
Explanation:
Short call and long put = - max (S - K, 0) + max (K - S, 0);
As S declines, the payoff from long put position improves. As S increases, payoff from short call position loses money. This option satisfies the condition put in the question.
Answer:
B it occurs where the market demand and supply curves intersect.
Explanation:
The equilibrium price is the current market price, as determined by the forces of demand and supply. It reflects the price at which buyers and sellers agree for a specified quantity of a product in a given time.
In a graph containing both the demand and supply curve, the equilibrium price is the two curves' intersection. At this price, there will be excess or short supply in the market.
