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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.

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The Perry Company reported Accounts Receivable, Net of $66,000 at the beginning of the year and $72,900 at the end of the year.
rjkz [21]

Answer:

d. 28.7

Explanation:

Calculation to determine the days to collect during year

Using this formula

Average collection period=Average accounts receivables/Net sales*365

Where,

Average accounts receivables=$66,000+$72,900/2

Average accounts receivables=$69,450

Let plug in the formula

Collection period =$69,450/$882,000*365

Collection period=28.7 days

Therefore the days to collect during year is 28.7days

3 0
3 years ago
Help hep help help help
Inessa05 [86]
I believe the answer is B
8 0
2 years ago
Rachael’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs
netineya [11]

Answer:

a. Advertising costs relative to the number of customers for a particular restaurant.   [Fixed]

b. Rental costs relative to the number of restaurants.  [Variable]

c. Cooks salaries at a particular location relative to the number of customers.          [Fixed]

d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers.  [Variable]

e. Manager's compensation relative to the number of customers.  [Mixed]

f. Servers' salaries relative to the number of restaurants.  [Variable]

Explanation:

8 0
3 years ago
An insurance policy with a higher premium most likely has
Alexxandr [17]
An insurance policy with a higher premium most likely has a lower deductible
5 0
3 years ago
1. The car dealer is offering a promotion on a new that the buyer pays zero interest over 72 months. The monthly payment is $350
inessss [21]

Answer:

selling price of this car is $22700  

Explanation:

given data

zero interest = 72 months

monthly payment = $350

market interest rate = 3.5% per year = 0.2917 % per month

time = 6 year = 72 months

solution

we get here present value of annuity that is

present value  annuity  = ( 0.2917 % per month , 72 months )

present value  annuity  =  64.8568

so here selling price of car is

selling price = monthly payment ×  present value  annuity  ............1

selling price = $350 × 64.8568

selling price = $22700

so selling price of this car is $22700  

8 0
3 years ago
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