1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sveticcg [70]
3 years ago
11

An investor is short stock at $70. If the stock's market price is $40, and the investor anticipates the price will continue to d

ecline, to hedge against a rise in the price, the investor should
Business
1 answer:
max2010maxim [7]3 years ago
7 0

Answer:

A. Buy a call

Explanation:

In the case when the investor purchase a call on the stock so the investor has the right to purchase for repurchase for a fixed price

Also the right way is to hedge a non-realized profit for a stock position i.e. short for purchasing a call

Therefore in the given situation, the correct option is A.

You might be interested in
What market structure has many relatively small buyers and sellers, a standardized product, good information to both buyers and
Ganezh [65]

Answer:

Perfect Competition

Explanation:

Perfect competition is a market characterized by many buyers and sellers that have full information and faces no barrier in entry and exit of the markets. It is the ideal form of market structure where competition is at is greatest possible value. The numerous buyers and sellers are engaged in trade of a homogeneous good in the market. It is also characterized by no long run economic profit and no control over prices.

5 0
3 years ago
Read 2 more answers
Ken makes a monthly income of $3000 after taxes. Every month, he spends 40% of his income on clothing. How much money does Ken s
In-s [12.5K]
Take 40 over a 100 as a fraction and 3000 over 1 as a fraction and multiply them. 3000 multiply by 40 is =120000 and divide that by 100 would be 1200

$1200
 
7 0
3 years ago
During a recent​ month, Canon Company planned to provide cleaning services to 30 customers for $ 26 per hour. Each job was expec
prisoha [69]

Answer:

$1,950 more than expected

Explanation:

In this question ,we have to compare the revenues based on expected and the actual

So, the expected revenues would be

= Number of customers × per hour rate × expected time spent

= 30 customers × $26 × 8 hours

= $6,240

And, the actual revenues would be

= Number of increased customers × per hour rate × average time spent

= 42 customers × $26 × 7.5 hours

= $8,190

The revenue is increased by

= $8,190 - $6,240

= $1,950 more than expected

This is the answer but the same is not provided in the given options

7 0
3 years ago
There are several different ways that Bond’s Gym can solve its problem.
AysviL [449]
<span>The main problem at Bond's Gym is excess demand. This means that negative incentives are the best way to go. Positive incentives would only increase demand at the gym, making the problem worse. however, negative incentives would create a positive result for the owner, as he would make more money and expand his gym, allowing him to meet more consumer demands.</span>
5 0
3 years ago
Read 2 more answers
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5% is to be maintained, this me
cupoosta [38]
88.2
Multiply 84 by 1.05
6 0
4 years ago
Other questions:
  • The Atlantic Division of Stark Productions Company reported the following results for 2016:
    15·1 answer
  • How do economists calculate GDP for one year using the expenditure approach?
    5·1 answer
  • Economic growth is __________.
    7·1 answer
  • On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra
    8·1 answer
  • Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leadin
    7·1 answer
  • Which capital budgeting method is most useful for evaluating a project that has an initial afterminustax cost of​ $5,000,000 and
    5·1 answer
  • Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on
    8·2 answers
  • A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced
    8·1 answer
  • A company increases the price of its clock radios by 10 percent and the company's total receipts fall significantly. What term b
    5·1 answer
  • Which of the following is the riskiest choice for your money? A. Savings account B. Government bonds C.CDs D REI
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!