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katen-ka-za [31]
3 years ago
6

A customer has a fully paid options position and is long marginable stock. Subsequently he receives a margin call on his long st

ock position. Which of the following statements are TRUE?
I The customer can borrow against long options contracts to satisfy a portion of the margin call
II The customer cannot borrow against the long options contracts to satisfy the margin call
III Long option contracts have a loan value of 0%
IV Long option contracts have a loan value of 50%

a. I and III
b. I and IV
c. II and III
d. II and IV
Business
1 answer:
Feliz [49]3 years ago
8 0

Answer: II and III

Explanation:

From the question, we are informed that a customer has a fully paid options position and is long marginable stock and that subsequently he receives a margin call on his long stock position.

The statements that are true are that the customer cannot borrow against the long options contracts to satisfy the margin call and the long option contracts have a loan value of 0%.

Therefore, option C is the right answer.

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Negative externalities are created when
katrin2010 [14]

Answer:

The correct answer is (C)

Explanation:

Negative externalities occur when an individual or firm making a choice negatively affect other parties.  A driver who recklessly drives a car on a busy highway is a negative externality because the amusement of the driver is negatively affecting other people. A negative externality arises when the benefit of a decision is less than the negative outcomes of that decision.

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3 years ago
When you have an exclusive contract with a real estate agent, what should you expect and not expect?
zhenek [66]

Answer:

You should expect the following when you sign an exclusive contract with a real estate agent as a buyer:

  • the agent has to locate and identify potential properties that might interest you, and advice you about a fair market price
  • the agent is responsible for reviewing the paperwork
  • the agent is also responsible for preparing purchase offers, and other related services

You should expect the following when you sign an exclusive contract with a real estate agent as a seller:

  • the agent has to locate and identify potential buyers that might be interested in your property, and try to obtain the best possible price.
  • the agent is responsible for reviewing the paperwork
  • the agent is also responsible for negotiating purchase offers

4 0
3 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
3 years ago
Read 2 more answers
Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to
mezya [45]

Answer:

E) incomplete market and product protocol.

Explanation:

Kimberly-Clark's Avert Virucidal failed in test marketing, because the researchers in charge of product development  failed to clearly define how it would satisfy consumers' wants and needs. The idea itself wasn't bad, but the concept testing was poorly done. During concept testing, the marketing researchers must determine if the consumers understand the product's idea or not, and obviously that didn't happen. The product does satisfy consumers' needs and if the marketing process was properly done, they would have probably accepted the product.

3 0
3 years ago
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An assumption for a construction project could be Select one: a. a grant will be secured to help fund the project. b. the materi
Eduardwww [97]

Answer:

a. a grant will be secured to help fund the project.

Explanation:

In project management, a project manager can be defined as an individual or organization that temporarily undertakes a project in order to create a unique result, product, and service. Project managers strives very hard so that they can achieve their aims, goals and objectives in the most cost-effective, efficient and best manner through the use of unique set of interrelated tools, skills and tasks.

An assumption for a construction project could be, a grant will be secured to help fund the project.

Project managers sometimes embark on the execution of projects without having enough fund to finish it successfully. There assumptions are usually that once they have commenced the process, a grant can be secured from creditors, investors or financial institutions to help fund the remaining part of the project. However, since it is an assumption, they're not guaranteed that the grant will be given to them; therefore, this can result to the stalling of projects sometimes.

By virtue of standards, materials to be used to construct the building, the size of the building that is to be constructed and the regulations and codes required for the building should never be assumed by project managers.

6 0
3 years ago
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