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Anna71 [15]
3 years ago
15

True or False: Your friend thinks that the stock price of KnowItAll Corp. will decline. He decides to write and sell an option w

ithout buying the stock. He says that he will buy the stock when his option buyer exercises the option. This is an example of a naked option. This statement is
Business
1 answer:
BlackZzzverrR [31]3 years ago
8 0

Answer:

True

Explanation:

In the case of naked options, the seller does not own any stock which is underlying Also the payoff related call option shows the difference between the price of the stock and the strike price

Therefore in the given situation, since he decides to write and sell without purchasing the stock but the purchased could be done when the option is exercised

So by the above explanation, the given statement is true

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Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will ________ the price
Blizzard [7]

Money supply is the total amount of money in circulation which includes coins, cash and balance in savings account in a country at a period of time.

  • Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will <u>not change</u> the price paid for its use, otherwise known as the <u>discount rate.</u>

  • A change the money supply in a country causes a change in aggregate demand.

  • An increase in the money supply causes increase in aggregate demand and a decrease in the money supply causes decrease in aggregate demand.

Therefore, an increase in money demand will not change the price paid for its use, otherwise known as the discount rate.

Read more:

brainly.com/question/12225192

8 0
2 years ago
How can surveys and questionnaires be used to gather data for informal reports?
zavuch27 [327]

Answer:

<em>Surveys and questionnaires allow you to collect data efficiently and economically from groups of people.</em>

Explanation:

<em>Surveys are research  often used to assess opinions, thoughts, and feelings of people towards a subject area or environment. it can either be limited or specific or they also can have more widespread goal which can be global.</em>

<em>Questionnaires is a set of questions written or printed with answer choices , devised for the purposes of  a statistical study or survey.</em>

6 0
3 years ago
Read 2 more answers
What would cause an increase in the equilibrium price of a good?
crimeas [40]

Answer:

Demand and supply

Explanation:

Demand and supply are the two factors which effect the equilibrium of price. If demand increases and the supplies remains constant the price will increase. On the other hand when demand decrease and the supplies remains constant the price will fall. So these two factors effect the Equilibrium price of a good.

5 0
3 years ago
If a company has excess capacity, increases in production level will increase variable production costs but not fixed production
den301095 [7]

Answer; True

Explanation;

When a company has excess capacity, it means that potentially it could produce more than it is producing at the moment. As this potential already takes into account the fixed costs, this means that given the fixed costs it currently has, more goods could be produced on those same fixed costs and they wouldn't increase.

Increasing production level would therefore only increase variable costs which rise whenever production rises as they are directly related to the production of goods.

6 0
3 years ago
Which of the following statements regarding the staffing budget is true? a.The staffing budget is based on the desired profit le
Valentin [98]

Answer:

b.The staffing budget is based on a fixed human resources budget

Explanation:

  • The staffing budget is the budget that outlines a money plan to be spent on the employees and consists of the largest investment to the organization.
  • It acts as an outline plan for the service companies each staff member corresponds to the salary for the employee in the spreadsheet on a weekly, monthly, and yearly basis.
8 0
2 years ago
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