Answer: C) limit the downside risk of asset ownership
Explanation:
The protective put is a strategy I risk-management which is utilized by the investors in order to help prevent a loss in an asset or stock.
Protective puts helps to act as an insurance by giving protection from the decline of the price of the asset.
Answer:
Residual supply = Quantity supplied - Quantity demanded = (p - 20)/0.02 - (80 - p)/0.02
= (p - 20 - 80 + p)/0.02 = (2p - 100)/0.02 = 100p - 5000
So, Excess or residual supply function is: A) Sr(p) = - 5000 + 100p
At price of $ 60, Excess supply = - 5000 + 100(60) = - 5000 + 6000 = 1000
Explanation:
Answer:
Net cash flow in year 0 = initial investment + increase in working capital
Net cash flow in years 1 to 9 = income after taxes + depreciation
Net cash flow in year 10 = income after taxes + depreciation + recovery of working capital
the percentage of buyers shifting from regular to diet drink is irrelevant for this project
IRR is calculated using the IRR function in Excel, with the inputs of values being the array of cells containing the net cash flows
IRR = 16.7627%
Answer:
x=0.25
Explanation:
Assuming that consumers value every non-defective car at $10,000 each, only defective used cars are for sale. Therefore, consumers value defective cars at $2,000.
The expected value of a new car is given by the defective new car rate (x) multiplied the defective value, added to the non-defective car rate (1-x) multiplied by the non-defective car value.
The fraction x is 0.25. That is, 25% of new cars sold are defective.
Answer:
A) The policy would provide a maximum of $100,000 for each person who was injured, and no more than $300,000 for total injuries of all parties in the accident.
Explanation:
The auto liability insurance policy held by the driver is an example of a split limit liability insurance. The split limit insurance of 100/300/50 is explained thus:
$100,000 - bodily injury liability insurance per person
$300,000 - Total bodily injury liability insurance per accident
$50,000 - Property damage liability per accident.