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kakasveta [241]
4 years ago
12

A client believes that XYZZ stock has bottomed in price and is ready for a steep rebound. What recommendation would give the cli

ent the smallest profit if this occurs?
Business
1 answer:
san4es73 [151]4 years ago
4 0

Answer:

D) Buy XYZZ stock and sell an XYZZ call

Explanation:

If the buyer is convinced that XYZZ stock has bottomed its price he should buy that stock since it's the cheapest it will get.

If he believes that XYZZ's price will soon rebound, then he should not sell a call option for XYZZ. f he sells a call option then his earnings will be very limited, since the price set at the call option will not be very high.

He should keep XYZZ stock for a while and wait for its price to rebound.

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With a DUI charge on a driver’s record A. the price of his/her insurance greatly increases. B. he/she may drive only during day
FrozenT [24]
<span>DUI or drinking under the influence of alcohol is a serious offense. With a DUI charge on a driver’s record, the price of his/her insurance greatly increases because of the hit to the driver’s record and his/her insurance policy may be cancelled at the end of the term especially if the driver’s license is suspended. Therefore, D is the correct answer.</span>
5 0
3 years ago
TB MC Qu. 6-63 Creswell Corporation's fixed monthly expenses ... Creswell Corporation's fixed monthly expenses are $23,000 and i
crimeas [40]

Answer:

Net operating income= $26,140

Explanation:

Giving the following information:

Fixed costs= $23,000

The contribution margin ratio is 63%.

Sales=  $78,000

<u>First, we need to calculate the contribution margin:</u>

Contribution margin= contribution margin ratio*sales

Contribution margin= 0.63*78,000

Contribution margin= 49,140

Net operating income= 49,140 - 23,000= $26,140

6 0
3 years ago
Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and ca
nikdorinn [45]

Answer:

A) Country 1's PPF lies further to the right than country 2's PPF.

Explanation:

Production Possibility Curve shows the combination of two goods, that an economy can produce - by utilising given resources & technology best efficiently.

If country 1 produces twice the output of both goods compared to country 2. Then, country 1's PPF would lie further to the right than country 2's PPF.  As, more quantities implies rightward shifted PPC, signifying more quantities of goods that can be produced.

Efficient or inefficient production leads to production inside or on PPC, doesn't shift PPC. Population change is also irrelevant in this case.

7 0
3 years ago
Weather Watches, a watch manufacturing company, faces a lot of problems while planning and setting goals as its competitors’ tec
Licemer1 [7]

Answer:

B. A dynamic and complex environment

Explanation:

6 0
3 years ago
ack purchased 200 shares of Apple stock earlier this month at the price of $210 per share. Apple stock is trading at $218 today
VARVARA [1.3K]

Answer:

The amount of unrealized capital gains he will have after the dividend payment is $1,200.

Explanation:

Apple stock price per share today = $218

Dividend per share = $2

Apple stock ex-date price per share = Apple stock price per share today - Dividend per share = $218 - $2 = $216

Unrealized capital gains = Number of Apple stock shares purchased * (Apple stock ex-date price per share -  Price per share at which Apple stock shares were purchased) = 200 * ($216 - $210) = 200 * $6 = $1,200

Therefore, the amount of unrealized capital gains he will have after the dividend payment is $1,200.

4 0
3 years ago
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