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
djverab [1.8K]
3 years ago
15

A customer owns 1,000 shares of XYZZ stock, purchased at $40 per share. The stock is now at $45, and the customer has become neu

tral on the stock, but believes that the stock still has good long term growth potential. The client asks her representative for a "conservative recommendation" that will give her a positive portfolio return. The client should be told to:
Business
1 answer:
docker41 [41]3 years ago
6 0

Answer:

The answer is "Sell 10 XYZZ 45 Call-Terms"

Explanation:

The purchaser bought the product at $40, and it is now selling at $45. The purchaser now is on product-neutral but feels it's a strong investment throughout the longterm. The product will now not be sold  Unless the client offers calls against both the stock price (put option writer), the investor can generate additional profit revenue in the investment strategy.

  • It also a balanced approach on the profits, that is the danger here is that the product will also be called off when the product rises quickly and the purchaser will not receive the overhead profit when the product decreases, the consumer pays on both the product, offset by both the prices we pay.
  • Loading puts will also generate high cash. If instead, the product grows, its calls expire and the product is also owned by the purchaser, but when the stock goes down, its limited sales will be executed, requiring the people to purchase the product. So, the purchaser will end up losing twice as quickly in a down market! That's not a "conservative" strategy.
You might be interested in
According to Piaget, children in the preoperational stage are able to Group of answer choices reason abstractly and test hypothe
Olenka [21]

Answer:

represent objects with words and images

Explanation:

The preoperational stage occurs is the second stage of Piaget's theory of Cognitive Development. Here, the child becomes familiar with the use of symbols. This also helps in the development of the child's language skills.

The child starts to understand the concept of thinking. This is known as meta-cognition. The ability of the child to represent objects with words and images is integral in the learning and use of language.

Hence, the answer is represent objects with words and images.

5 0
3 years ago
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes tha
Lelechka [254]

Answer:

$0.013

0.010724

Explanation:

Given that :

Mean, m = 36500

Standard deviation, s = 5000

Refund of $1 per 100 mile short of 30,000 miles

A.) Expected cost of the promotion :

P(X < 30,000)

Using the Zscore relation :

Zscore = (x - m) / s

Zscore = (30000 - 36500) / 5000

= - 6500 / 5000

= - 1.3

100 miles = $1

1.3 / 100 = $0.013

b. What is the probability that Grear will refund more than $50 for a tire?

100 miles = $1

$50 = (100 * 50) = 5000 miles

Hence, more than $50 means x < (30000 - 5000) = x < 25000 miles

P(x < 25000) :

(25000 - 36500) / 5000

-11500 / 5000

= - 2.3

P(z < - 2.3) = 0.010724 (Z probability calculator)

3 0
3 years ago
A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows ​$2
seraphim [82]

Answer:

The ammount due at the end of the loan adds for $27,456

Explanation:

If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.

It is important to notice that the loan is done at simple interest, so the interest does not capitalize.

Ammount$-due = 26,000 * (1 + 0.014 * 4) = 27,456

3 0
3 years ago
When looking at the purchase of accounting software, things to avoid include
Elenna [48]

Answer:

4) C) software that requires a high annual subscription whether you want the updates or not

Explanation:

7 0
3 years ago
Wells Company's delivery truck, with a cost of $56,000 was destroyed by fire. At the time of the fire, the balance of the Accumu
seraphim [82]

Explanation:

Is the answer C if not please explain

8 0
3 years ago
Other questions:
  • State or federal codes that specifically apply to businesses are called: A. franchise law B. patent law C. business law D. tax l
    14·2 answers
  • Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the inve
    9·1 answer
  • Economists say that individuals make decisions at the margin. What does its menas?
    7·1 answer
  • The sales-volume variance equals:
    14·2 answers
  • On July 4, Cullumber's Restaurant accepts a Visa card for a $1,350 dinner bill. Visa charges a 2% service fee. Prepare the entry
    14·1 answer
  • Bill is considering investing $450 at the end of every month in a fixed income instrument. He will receive $27,000 at the end of
    12·1 answer
  • The market price of an $1,000,000, ten-year, 12% (pays interest semiannually) bond issue sold to yield an effective rate of 10%
    8·1 answer
  • A company produces and sells 6,400 recliners each year. Each production run has a fixed cost of $400 and an additional cost of $
    6·1 answer
  • Rachel's Recordings reported net income of $280,000. Beginning balances in accounts receivable and accounts payable were $15,000
    11·1 answer
  • According to ethical guidelines, at the end of a study participants must be fully informed as to the purpose of the study and gi
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!