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bulgar [2K]
3 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]3 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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True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.
gogolik [260]

The statement that individuals have social responsibilities regarding their ethical behavior in the business world is True.

This is because, individuals Social responsibility have a way if affecting the ethical behavior, in business and society as a whole.

<h3>What is Social responsibility?</h3>

Social responsibility can be explained as a responsibility of individuals as well as companies as regards their duty in order to act in the best interests of the society.

Learn more about Social responsibility at:

brainly.com/question/1594159

8 0
3 years ago
When a company has issues bonds, preferred stock, and common stock to investors what investor gets paid last
sasho [114]

When a company has issues bonds, preferred stock, and common stock to investors what investor gets paid last is explained in the following

Explanation:

  • In a buyout, the purchaser is buying all of the common shares of stock for a price it believes to be the fair value of the company as a whole. ... Many preferred shares carry convertibility options, where they can trigger a conversion from preferred into common stock.
  • Preferred stock is a type of ownership that receives greater demand on a company's profits and assets than common stock. While preferred shareholders do not typically have a right to vote in the company, they do hold the benefit of being paid dividends before common shareholders.
  • Most shareholders are attracted to preferred stock because it offers consistent dividend payments without the long maturity dates of bonds or the market fluctuation of common stocks.
  • The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.
  • Preferred stocks are not debt issues, so they do not represent loans that are eventually paid back at maturity. ... The yield generated by a preferred stock's dividend payments becomes more attractive as interest rates fall, which causes investors to demand more of the stock and bid up its market value.
4 0
4 years ago
Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign
MariettaO [177]

Answer:

Direct

Explanation:

In the era of globalization one can do business in any part of world. when one person does business  by making investment in any country and belong to another country and control business from their country of origin it is called foreign direct investment.

6 0
4 years ago
Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly
VikaD [51]

Answer:

Yanta Co. has a higher exposure to exchange rate risk than Diz Co.

The reason is that Yanta Co. does not have net inflows of euros.  Instead, its euro transactions yield net outflows.

It will always be in need of euros to settle its foreign debts or obligations, unlike Diz Co. with foreign assets.

Explanation:

a) Data and Analysis:

Diz Co. has net cash inflows of euros and net cash inflows of swiss francs

Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs

b) Exposure to exchange rate risk or currency risk is the financial risk arising from fluctuations in the value of the US dollars against the Euro or Swiss Francs in which Diz Co. has some foreign assets while Yanta Co. has foreign obligations.

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3 years ago
A/an ____ tort is committed on purpose.
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I think it would be A
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4 years ago
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