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Akimi4 [234]
4 years ago
15

A decrease in the basis will __________ a long hedger and __________ a short hedger. Group of answer choices hurt; hurt hurt; be

nefit benefit; have no effect upon benefit; benefit benefit; hurt
Business
1 answer:
Lyrx [107]4 years ago
8 0

Answer:

hurt, benefit

Explanation:

The basis in a future contract is defined as the difference between the spot price of the asset in the cash market and the price of the same assets future contract.

A short hedge is an investment strategy that is used to protect hedge, against the risk of future decline in asset price or basically to hedge against potential losses by selling at a determined rate. This means that when one is in possession of a commodity and in order to protect against a decline, in the market, you sell (go short) the future contract , while long hedge is when you anticipate a need for the underlying commodity in the future. It means that to protect against an increase in the market price, you buy (go long) the future contract. Then when you are ready to buy the commodity, any increase in the market price is offset by your gain on the future contract.

The above means that where an asset and a contract are liquidated before due dates , there would be basis risk hence both the future and spot price need not move in lockstep before delivery date. This means that a decrease in the basis will benefit the short hedger and hurt the long hedger.

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Is that the question or what i need info.XD
4 0
3 years ago
Jackson Corporation issued a 100% stock dividend of its common stock, which had a par value of $.01, and a market value of $123
shepuryov [24]

Answer:

par value = $0.01 per stock

Explanation:

Retained earnings are capitalized to measure how the issuance of new stocks affects existing outstanding shares. In this case or any other case, retained earnings will be capitalized at par value, since the market value of the shares doesn't affect it.

If new shares were issued in an unrelated operation, the accounts that would be affected are common stock and additional paid in capital, not retained earnings.

4 0
4 years ago
What 3 types of customer statements can be generated by QuickBooks Online? (Select all that apply)
Dimas [21]

Answer: The correct answers are:

-"Statements that show a balance forward and then all activity between two specified dates".

-"Statements that show invoices created between two specified dates and their related payments ".

"Statements that show just open transactions".

This 3 types of customer statements can be generated by QuickBooks Online.

6 0
3 years ago
The City of Fargo issued general obligation bonds to finance construction of a new fire station. The bonds were issued at a prem
Dmitry_Shevchenko [17]

Answer:

The correct answer is (c)

Explanation:

Bonds and stocks are used to generate financing. The city of Fargo has issued bonds to finance the construction of a new fire station. The bond is a type of debt funding and the premium must be transferred to a debt service fund. A debt service fund will be used to pay out the principal payments on those bonds.

5 0
3 years ago
For the past few months, Denver Framing has experienced high employee turnover. After investigating, human resource manager Kyle
alekssr [168]

Answer:

b.)State the primary message; lay out supporting reasons; conclude with a call to action.

Explanation:

These are options for the question

a.State the primary message; give the call to action; lay out the supporting reasons.

b.State the primary message; lay out supporting reasons; conclude with a call to action.

c.Start with a call to action; lay out the supporting reasons; conclude with the primary message.

d.Start with a call to action; state the primary message; lay out the supporting reasons.

e.Lay out the supporting reasons in careful order; state the primary message.

From the question we are informed about Denver, For the past few months, His Framing has experienced high employee turnover. After investigating, human resource manager Kyle discovered that most employees are unhappy with their salaries and therefore unmotivated to work. Kyle plans to craft a message using the direct approach. In this case he should have a structure whereby he would ; ✓State the primary message

✓lay out supporting reasons

✓conclude with a call to action.

In direct approach message, the main idea of the message is been written near the top, and it is important since there is a believe that the audience reaction will be positive towards the message. In direct approach, which is a deductive argument. the idea of the message which includes recommendation, as well as conclusion and request is placed at the of the document, and then the evidence can follow it.

4 0
3 years ago
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