Answer:
C) buy 100 SPX 2500 Puts
Explanation:
SPX stock is based on the Standard and Poor's stock index, so if the investor is worried about a market decline, if he purchases put options and the marker declines, he/she will actually earn money. Each SPX 2500 contract covers approximately $250,000 of portfolio value, so if the investor purchases 10 put options then the whole portfolio would be covered.
Answer:
The correct answer is B. They increase consumption and decrease investment.
Explanation:
It should be taken into account that in the fourth quarter of the year the company did not produce any type of consumer goods, it only did so in the third quarter and subsequently sold them. For this reason there was an increase in consumption when acquired by consumers, and the investment decreased because they were goods produced in another period.
Answer:
Kindly check attached picture for detailed computations of section a, b and c.
Answer:
Indirect Method
a. Accounts payable increase or decrease
d. Accounts receivable increase or decrease.
<em>The above are both used in the Indirect method and fall under Cashflow from Operating activities. </em>
Direct Method
b. Payments to employees
c. Cash collections from customers
e. Payments to suppliers
<em>The direct method involves the above and they all fall under Cash generated from operations. </em>
Answer:
Truth in advertising laws
Explanation:
Because of the Truth in advertising laws, this law requires that you don't bend the truth and to speak honestly about your products, in order to prevent potential harm. What I mean is that you can't say that eating your company's tires will cure cancer without any evidence to support this, because if people were to do that, they could actually form cancer or even die. The federal law says that companies and their ads must be truthful and not misleading.