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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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As the question is incomplete and examples are not given here but in actual and complete question options are:
<span>Farm subsidies
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</span>And among these options, the correct option is "Farm subsidies".

Farm subsidies are viewed as a prime zone for spending reductions, yet are restricted by the effective homestead hall and individuals from Congress from agribusiness states.
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why now when people still need help alot of help

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b. D Corp stock currently trades at $50. August call options on the stock with a strike price of $55 are priced at $5.75. Octobe
coldgirl [10]

Answer:

The value of the time premium between the August and October options is $0.50

Explanation:

A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.

To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value

Time premium = 6.25 - 5.75 = $0.50

3 0
3 years ago
2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take
Colt1911 [192]

Answer: At the age of 65 the money will be $90337.5

Explanation: There are 365 days in a year take $5 multiply it by 365 to get the money after one year then multiply it by 10 % to get an interest per year. Add the interest to the amount then multiply by 43 years.

Note 65years-22 years = 43 years

$5×365= $1825

$1825×10%=$182.5

=$182.5+$1825=$2007.5/year

$2007.5×43= $90337.5

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The difference between the economic impact upon a municipality by a convention center as opposed to a stadium or arena built for
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