Answer:
sell 1.714
Explanation:
The computation of the number of contract buy or sold to hedge the position is shown below:
As we know that
Number of contracts = Hedge Ratio
Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract
where,
Change in the value of the portfolio is
For that we need to do following calculations
Expected Drop in Index is
= (1200 - 1400) ÷ 1400
= -14.29%
And, Expected Loss on the portfolio is
= Beta × Expected index drop
= 0.60 × (-14.29%)
= -8.57%
So, the change is
= 1000000 × (-8.57%)
= -$85,700
And, the profit is
= 200 × 250 multiplier
= 50,000
So, the hedging position is
= -$85,700 ÷ 50,000
= -1.714
This reflects the selling position
Scott was denied the loan because he was not old enough to qualify.
<h3>What is the Payday loan?</h3>
Payday loan is a type of unsecured loan in which high rate of the interest is given to the borrower. It is a kind of the short term loan basically for the two weeks.
According to the above situation, Scott is cannot get the payback loan because he is minor to sanction a loan. He must have the age of 18 years or above.
Learn more about payday loan here:
brainly.com/question/3949419
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Answer:
(a) Operating activity
(b) Financing activity
(c) Operating activity
(d) Investing activity
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
So,
(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount
(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities
(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities
(d) An increase in land value comes under the investing activity.
