Dupont has an advertisement that shows police officers describing how they were shot at close range in the line of duty. the advertisement explains that the lives of these public servants were saved by kevlar bullet-proof vests and that kevlar was invented by Dupont. this is an example of Institutional advertising. The correct answer to the following given statement above is institutional.
Answer:
$6,300( unfavorable)
Explanation:
The relative variance of the utility expense is the budgeted utility expense minus the actual utility expense.
Budgeted utility expense=$38,700
actual utility expense=$45,000
relative variance for utility expense=$38,700-$45,000
relative variance for utility expense=-$6300
Note that this has to do with a cost, hence, the lesser your actual cost is compared to the budgeted cost, the better.
Since actual cost is higher than budgeted, it means more money than expected was spent, all in all, it is an unfavorable variance.
Answer:
$10 profit
Explanation:
In this question, we are asked to calculate the profit or loss to a short position.
Firstly, we identify that the spot price of market index is $900.
Now, a three months forward contract equals a value of $930.
Raising the index to $920 at the expiry date is obviously a profit to the short position.
To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.
Mathematically, this is equal to $930-$920 = $10 profit
Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months (
) = $3.20
European call (K) = $35
The price (P) is given by:
The price of a 6-month, $35.00 strike put option is $1.65
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
