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GenaCL600 [577]
3 years ago
12

You own 10,000 shares of Microsoft stock. A good way to hedge the risk involved in owning this stock would be to buy some call o

ptions on Microsoft stock.
a. True
b. False
Business
1 answer:
natka813 [3]3 years ago
7 0

Answer: False

Explanation:

If you want to hedge the risk of owning the stock then that would mean that you want to take measures to ensure that you don't lose out if prices fall.

A call option is not the way to do this because call options are bought with the expectations that prices will go up. If you buy call options then and the prices fall, you would make a loss on both the call options and the stock that you own.

A good way to hedge this would be to take Put options on the stock. Put options help you benefit if prices fall because you would be allowed to sell at a certain price unaffected by the fall in prices.

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Real income can be determined by:
nlexa [21]

Answer:

The answer is D. Deflating nominal income for inflation.

Explanation:

Real income is how much money an individual or entity makes after accounting for inflation.  it is the income of an individual or a nation after adjusting inflation. It is calculated by dividing nominal income by the price level.

Hence we can say real income is determined by Deflating nominal income for inflation

7 0
3 years ago
True or false: if hubert's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreas
Amanda [17]

FALSE

because hubert being a competitive firm, if it decreases the price of engine, demand increases and thus production increases. Therefore revenue also increases.

7 0
2 years ago
Why are professional associations interested in keeping professional standards high?
gavmur [86]

Answer:

A few dishonest professionals can hurt the entire profession.

3 0
3 years ago
Che was being recruited by a competitor due to her success at her current company in getting several new patents. This is an exa
miv72 [106K]

Answer:

Intellectual Capital

Explanation:

An employee at an organisation can be sought after by others as a result of their intellectual property or prowess. This intellectual property is based on business skills, training and knowledge among others provided by the employee that gives their employers some form of competitive advantage over other organisations.

Che's current company has been able to come up with new products and patents as a result of knowledge and skills brought to the company by Che. This is Che's intellectual capital or intellectual property which is currently being valued at her current organisation and sought after by others.

Intellectual capital also has some subsets and they include instructional capital, human capital and even information capital among others.

6 0
3 years ago
An acquiring company issues 500,000 shares of $6 par value common stock to acquire 100% of the voting common stock of an investe
katovenus [111]

Answer:

the total amount of net asset recognized is $15,000,000

Explanation:

The computation of the total amount of net asset recognized is shown below:

= Number of shares issued × per share

= 500,000 shares × $30

= $15,000,000

Hence, the total amount of net asset recognized is $15,000,000

We simply multiplied the above two items

6 0
2 years ago
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