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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.
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What are the three basic questions faced by every economy
Likurg_2 [28]

The three basic questions asked are:

1. What goods and services should be produced?

This is asked because the economy wants to produce what the consumers want or else the resources aren't being used efficiently since resources are scarce.

2. How should we produce them?

This is asked because the producers don't want to spend unnecessary time or money on production, so they must choose wisely what method of production is best for their company and consumers.

3. Who are the consumers?

This is asked because the producers want to make sure that they are targeting the right people with advertising or selling.

Hope this helped!

~Just a girl in love with Shawn Mendes

5 0
3 years ago
Read 2 more answers
Grand Trunk Inc., a furniture manufacturing company, does not manufacture furniture until an order is received. It coordinates a
sleet_krkn [62]

Answer:

supply chain management

Explanation:

Supply chain management -

It refers to the management for the flow of services and goods along with the process that are responsible for the conversion of the raw products to final goods and services , is referred to as the supply chain management .

The process like supplying , designing , production , quality control etc. are all process in supply chain management .

Hence , from the given scenario of the question ,

The correct answer is supply chain management .

7 0
3 years ago
Checks written in late December do not appear on a December 31 Bank Statement because they were not cleared by the bank as of Ma
Shkiper50 [21]

Answer:

B) Subtract them from the bank balance.

Explanation:

When you are adjusting your bank statement you must subtract any outstanding checks and add any deposits in transit.

In this case, the checks that were written at the end of December will probably be cashed during the next months, but the company must adjust their bank balance because they know that the checks will eventually be cashed, sooner or later.

6 0
3 years ago
Univisión’s market appeal is most specifically aimed toward the ________________ market.
mezya [45]
Univision's market appeal is most specifically aimed toward the HISPANIC market.

Hispanic or Latino according to the U.S. Census Bureau is an individual who is of Cuban, Mexican, Puerto Rican, South or Central American, or any Spanish origin or culture".
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3 years ago
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Suppose you know that a company’s stock currently sells for $66.70 per share and the required return on the stock is 12 percent.
Kobotan [32]

Answer:

$3.78

Explanation:

The computation of current dividend per share is shown below:-

Dividend yield = Capital gains yield

= (12% ÷ 2)

= 6%

Dividend yield = Annual Dividend for next year ÷ Current price

Annual Dividend for next year = ($66.7 × 6%)

= $4.002

So,

The Current dividend per share = Annual Dividend for next year × (1 + interest rate)

= $4.002 ÷ (1 + 0.06)

= $4.002 ÷ 1.06

= $3.78

8 0
3 years ago
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