Answer:
Buy at a lower strike put option or sell at a higher call option
Explanation:
100 shares of apple stock bought at $300
premium of put option ( cost ) = $12
Put option = $300
<u>What can be done to reduce the cost of protective put position </u>
To reduce the cost we can either buy at a lower strike put option or sell at a higher call option
Buying at a lower strike put option price ( < $300 )
This way premium will be reduced but this will not hedge against small fall in price
Sell at a higher call option
This way the premium charged will be reduced but if the price rises above the entry price on expiration then the gains made above the price will be foregone .
<u>"Consumption" </u> is about two-thirds of the demand side of gdp, but it moves relatively little over time.
Consumption expenditure by family units is the biggest segment of GDP, representing around two-thirds of the GDP in any year. This reveals to us that shoppers' spending choices are a noteworthy driver of the economy. Notwithstanding, consumer spending is a delicate elephant: when seen after some time, it doesn't bounce around excessively.
Answer:
Using the gross profit method, the cost of goods sold would be:
$42,500
Explanation:
Gross margin ratio of the company is 15%. Refer the formula:
Gross margin = Gross profit/Revenue (or net sales)
= (Net sales- Cost of good sold)/Net sales
Using the gross profit method and from the formula,
Cost of good sold = Net sales - Net sales x Gross margin
= Net sales x (1 - Gross margin)
= $50,000 x (1-0.15) = $50,000 x 0.85 = $42,500
Inventory costing methods rely heavily on assumptions about the flow of costs. The most widely used inventory valuation method is the FIFO method.
FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Specific Identification, and Weighted Average Cost are the 4 major Inventory costing methods. If your inventory costs are steady or increasing, LIFO is the better option. Businesses with bigger inventories and rising costs appreciate how LIFO reduces profits and taxes while increasing cash flow. If your inventory costs are decreasing, FIFO is the better option.
Learn more on Inventory costing methods-
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Answer:
Value of Marginal Product= 2
Worker Marginal Product = 12
Explanation:
Calculation for what is the value of the marginal product of the last worker he hired
Using this formula
Wages= MP*P
Let plug in the formula
12 = MP*6
Marginal Product = 12/6
Marginal Product= 2
Therefore the value of the marginal product of the last worker he hired will be 2
Now let calculate the worker marginal Product
Worker Marginal Product = 2*6
Worker Marginal Product = 12
Therefore the Worker Marginal Product will be 12
