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WITCHER [35]
3 years ago
12

You buy a call option and a put option on general electric. both the call option and the put option have the same exercise price

and expiration date. this strategy is called a _________. time spread money spread short straddle long straddle
Business
1 answer:
viktelen [127]3 years ago
3 0
This strategy is called a LONG STRADDLE. A long straddle refers to the combination of buying a put and a call option both of which have the same strike price and expiration date. A trader that uses long straddle technique is trying to protect his interest in regard to the volatility of the item he has bought.
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The intensity of competition is greater in declining industries in which: a. the product is easy to differentiate. b. exit barri
Oksi-84 [34.3K]

Answer:

b. exit barriers are high

Explanation:

Declining industries are those industries wherein the industry has saturated and experiences a negative growth. The characteristic of such industries being the products are lesser in demand.

For instance, cassettes and magnetic tapes industry was in demand until the arrival of more advanced forms such as compact discs and usbs, post which those industries turned into declining industries.

A declining industry with high barriers to exit would experience a greater competition since the barriers would encourage competition instead of withdrawal. And with higher costs of withdrawal, the firms continue producing at negative growth.

4 0
3 years ago
What is product positioning?
Tcecarenko [31]
Answer : Product positioning is a form of marketing that presents the benefits of your product to a particular target audience. Through market research and focus groups, marketers can determine which audience to target based on favorable responses to the product.

step by step explanation :
3 0
2 years ago
A diet is to contain at least 3640 mg vitamin C, 2190 mg Calcium, and 2170 calories every day. Two foods, a dairy-based meal and
vovangra [49]

Answer:

(A) 73 ounces of diary-based meal and 28.8 ounces of the vegan option.

(B) The minimum cost per day is [73 × 0.21] + [28.8 × 0.27] = 15.33 + 7.776 = $23.106

Explanation:

First thing to note is that the dairy-based meal costs less than the vegan option. In otherwords, if you're to minimize cost, you should purchase as many ounces of dairy-based meal as possible. This is the first mindset or step.

What the diet should contain everyday:

3640mg - Vitamin C

2190mg - Calcium

2170 - Calories

DAIRY BASED:

(40 × 91 = 3640), (30 × 73 = 2190), (10 × 217 = 2170)

VEGAN OPTION:

(60 × 60.67 = 3640), (30 × 73 = 2190), (50 × 43.4 = 2170)

Getting 73 ounces of dairy-based meal, you have

(40 × 73), (30 × 73), (10 × 73) = 2920mg, 2190mg, 730 calories.

You have left 720mg of Vitamin C and 1440 calories to obtain from the Vegan Option.

(60 × 12 = 720), (30 × 0 = 0), (50 × 28.8 = 1440)

The highest quantity needed here is 28.8 ounces of calories from the vegan option, hence 28.8 ounces of the vegan meal should be purchased. There will be excesses of Vitamin C and Calcium but that is necessary in order to purchase the stipulated minimum amount of each nutrient.

The minimum cost per day will now be [73 × 0.21] + [28.8 × 0.27] = 15.33 + 7.776 = $23.106

8 0
3 years ago
The SP Corporation makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this l
Yuri [45]

Answer:

c) 108,000 dollars

Explanation:

Buy option:

Purchase:        40,000 motors at 25.15 = 1,006,000

unavoidable fixed cost: 40,000 x 4.60 =    184,000

                                                               1,190,000.00

Produce option:

Manufacturing Cost (9.9 + 8.9 + 3.65) x 40,000 = 898,000.00

Fixed cost:                                                                  184,000.00

Total Cost                                                          1,082,000.00

Differential:  1,190,000 - 1,082,000.00 = 108,000.00

It is advantageous to continue the production as the unavoidable cost will make the buy option a worse deal

5 0
3 years ago
A bank offers the following certificates of deposit: Nominal annual interest rate Term in years (convertible quarterly) 1 4% 3 5
Ymorist [56]

Answer:

i = 5.48%

Explanation:

We can use the following method to solve the given problem in the question.

Two consecutive 3 year CDs:

=10000 * (1+(0.05/4))^12 * (1+.(0.05/4))^12 = 13, 473.51

One 5 year CD and a 1 year CD:

=10000 * (1+(0.0565/4))^20 * (1+.(0.04/4))^4 = 13,775.75

13,775.75 is the greater.

The annual effective rate is

=10000 * (1+I)^6 = 13,775.75

i = 5.48%

5 0
2 years ago
Read 2 more answers
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