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amid [387]
2 years ago
11

you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering

Business
1 answer:
timofeeve [1]2 years ago
8 0

Answer: D. I, II, and III

Explanation:

If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.

You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.

Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.

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How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank?
Alecsey [184]

Answer:

A bank acts like an intermediary between depositors and creditors. If the market interest rates increase, gross interest income will rise, but all gross interest expense. They will charge higher rates to borrowers, but also must pay higher rates to depositors. The spread probably remains unchanged because both sides increased.

4 0
2 years ago
A bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rat
sladkih [1.3K]

Answer:

credit rationing

Explanation:

Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also  is a means to maintain equilibrum between loan funds and loan demands.  

Cheers.

8 0
3 years ago
An employee at falcon security is studying an analysis of data regarding the occurrence of problems and failures with its drones
Mrac [35]

Answer:

a. Decision making

Explanation:

The data that the employee collects will be used to <em>decide </em>whether or not to perform maintenance.

8 0
3 years ago
PURCHASING POWER PARITY In the spot market, 19.1 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in t
LiRa [457]

Answer: $286.50

Explanation:

Purchasing Power Parity (PPP) posits that prices are the same across countries given the rate of exchange between the currencies of the countries in question.

1 USD = 19.1 Mexican pesos.

Compact disc in Mexico would cost;

= 19.1 * 15

= $286.50

8 0
3 years ago
Which form certifies a container's serviceability and identifies the month and year the next reinspection is due?
Colt1911 [192]

Answer:

DD Form 2282 decal.

Explanation:

A container can be defined as a metallic object, which is usually rectangular in shape and used for freight or the transportation of goods from one location to another.

A DD Form 2282 decal is a form which certifies a container's serviceability and identifies the month and year the next reinspection is due. It is a type of form which gives a visual representation of the certification of a container, indicating its eligibility to transport cargoes (products or goods) such as automobiles, electronic gadgets, clothes, and other items.

Also, it gives an information about the particular month and year the next reinspection of a container would be.

Generally, before the expiration date of the DD Form 2282 decal, a container must be reinspected and this is usually 30 months after the previous inspection.

4 0
3 years ago
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