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bulgar [2K]
2 years ago
14

A customer has a broadly diversified stock portfolio with a current market value of $2,500,000. The customer wishes to hedge the

portfolio against a market decline. The customer should:________
A. sell short the exact same stock positions as those held in the portfolio
B. sell 100 SPX 2500 Calls
C. buy 100 SPX 2500 Puts
D. sell long the exact same stock positions as those held in the portfolio
Business
1 answer:
Mars2501 [29]2 years ago
8 0

Answer:

C) buy 100 SPX 2500 Puts

Explanation:

SPX stock is based on the Standard and Poor's stock index, so if the investor is worried about a market decline, if he purchases put options and the marker declines, he/she will actually earn money. Each SPX 2500 contract covers approximately $250,000 of portfolio value, so if the investor purchases 10 put options then the whole portfolio would be covered.

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If the current allocation of resources in the market for wallpaper is efficient, then it must be the case that
Nadya [2.5K]

Answer:

b. the market for wallpaper is in equilibrium.

Explanation:

Efficient allocation of resources means that the cost to produce the last unit of wallpaper and the benefit from that unit equals.

It must be the case that the cost of obtaining the product (which is equal to the benefit to the buyers) is the same as the cost of producing the product. That is the price.

The quantity where demand and supply meets in the equilibrium quantity (supply curve intersect demand curve)

That's the market equilibrium, where the price and quantity that buyers are willing to buy and suppliers are willing to sell is the same.

5 0
3 years ago
Moore General Store purchased office supplies on account during the month of February for $4,500. Payment for the supplies will
Anni [7]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Purchased office supplies = $4,500

Supplies on balance account (in beginning) = $200

Supplies remaining (in end of month) = $180

So, To calculate supplies used in February we use following method:

Supplies Used  = Supplies in Beginning + Purchased office supplies - Supplies in Ending

= $200 + $4,500 - $180

Supplies Used = $4,520

Hence, the amount of supplies USED during February was $4,520.

6 0
3 years ago
The _____ approach to systems development is a group-based tool for collecting user requirements.
miss Akunina [59]
C. prototyping, does it makes sense now.
8 0
3 years ago
What is the starting salary of a novel author or novelist? it's for a project.​
jenyasd209 [6]

Answer:

The average one is $49,046. Found it online.

3 0
2 years ago
In order to build alliance management capabilities in small companies, it is recommended that firms take the ______ approach
julia-pushkina [17]

Answer:

non-equity alliance.

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Generally, a business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;

I. Mission.

II. Value.

III. Vision.

Hence, when you wish to build alliance management capabilities in small companies, it is highly recommended that business firms take the non-equity alliance approach.

A non-equity alliance approach can be defined as a contractual relationship between two or more organizations that are interested in achieving common goals and objectives by pooling their resources, capabilities and efforts together while respectively maintaining their organizational independence without creating a new corporation or equity entity.

8 0
3 years ago
Read 2 more answers
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