Answer:
a long put plus a long position in the underlying asset.
Explanation:
A protective put strategy is a long put plus a long position in the underlying asset. It is a risk management strategy that makes use of options contracts which are employed by investors to protect or guard their investments against a potential loss in stocks or assets such as commodities, indexes and currencies. The protective put strategy helps to mitigate or limit risk associated with buying stocks for the first time.
Generally, the value of the underlying asset is anticipated to decrease by the buyers while the value of the underlying asset is anticipated by sellers of call options to also decrease.
Hence, considering the prospective option holder, when the exercise price is higher, it means that the call options are worth less. Also, when the exercise price is higher, it means that the put options are worth more.
Answer:
B) The textbooks are placed in a common area of the department so students can borrow and return them as needed.
Explanation:
To avoid a new tragedy of the commons from occurring in the statistics class, each student that receives a book should be responsible for taking good care of it.
If the books are simply placed in a common area, anyone can come and take a book home and never return it or return it in a very bad shape.
Answer:
New developments in forensic science and the scientists responsible for these developments is explained below in detail.
Explanation:
Image improvement technologies are empowering researchers to read evidence such as footprints, fingerprints, and strike marks. Data tapping of databases, such as the Connected DNA Index System (CODIS) and the Automated Fingerprint Identification Systems (AFIS) assistant crack cases that would have been unsolvable a few times ago.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
- The greater the elasticity of supply, the grater the gains from trade.
<u>TRUE. </u>
This situation is true because in an elastic supply situation there is a decrease in prices and an increase in demand, so total surpluses increase and generate more gains to trade.
- If supply is perfectly inelastic, the fall in consumer surplus would exceed the rise in producer surplus.
<u>FALSE</u>
It is false because In a perfectly inelastic supply situation, the quantity of demand does not change even if prices change.
- Producers can still benefit from trade even if supply is perfectly inelastic.
<u>FALSE</u>
It is false because in a perfectly inelastic supply situation the beneficiary will be the consumer, as prices will not change and consumer surplus will increase.
