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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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State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual
statuscvo [17]

Answer:

a. An individual sells her house on her own.  

         GDP is not affected.

b. An individual sells his house through a broker.

         GDP is not affected.  

c. Government increases Social Security payments.  

          GDP is not affected.

d. Stock prices rise by 20 percent.

   GDP will increase.

Explanation:

Selling a house by an individual does not affect the Gross Domestic Product of a Country.  

Selling a house by a broker will also not affect the Gross Domestic Product of a Country.

When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.

When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.  

5 0
3 years ago
a. Simulation can be used to analyze large and complex real-world situations that cannot be solved by using conventional quantit
Ivan

Answer:

D). All of the above statements are correct.

Explanation:

Simulation can be described as the process designed to offer a realistic experience in order to know the actual mechanism of a specific behavior or outcome.

As per the question, 'all the given statements' are asserting true claims with respect to simulation. Simulation is characterized as <u>an effective process for evaluating large and complicated actual-world circumstances as it is a realistic environment to know the truth and actual causes behind those situations</u>. Such situations cannot be assessed truly using the traditional quantitative models of analysis. It is able to provide answers to the questions like 'what-if' as it observes the realistic nature and promotes effective decision-making. It is also <u>employed to investigate the collective effect of specific variables or components to categorize them as important or not-important as it closely observes every aspect</u>. Thus, <u>option D</u> is the correct answer.

3 0
3 years ago
In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper
Sonbull [250]

Answer:

The correct answer is letter "A": operating activities.

Explanation:

Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

3 0
3 years ago
You are making the inventory decisions for an international company that sells bathing suits. The product has a forecasted daily
dem82 [27]

Answer:

Please see attachment and assumptions

Explanation:

<h2>Please note that the assumption is that the full question is as follows .</h2><h2>You are making the inventory decisions for an international company that sells bathing suits. The product has a forecasted daily demand with mean 100 and standard deviation 36. The selling season only lasts 6 months since bathing suits are a seasonal item. You are procuring the product from your factory in China (out-sourcing) and as a result the lead time is so long (6 months) that you can only place only one order per selling season (6 months before the season begins). You want to ensure a service level of 97.5% and the cost of capital of the firm is 20% (that is, the firm faces an annual interest rate of 20%). Shipping cost is $4,500 while procurement cost (purchase cost) per item is $5.</h2><h2>1.How many bathing suits should you order from your factory in China? </h2><h2>2.What is the total holding cost? </h2><h2>3.What is the total ordering cost?</h2>

5 0
3 years ago
The latest version of the surgeon general reports recommends ________ for the promotion of health.
Scrat [10]
The answer is Regular and Moderate to High Physical Activity


While generally accepted as good for health, medical professionals have conducted extensive research and recommended that the best way to promote health is to regularly exercising, especially at a moderate and high level physical activity.

This means, simple walking is not going to be enough.
We need to exert our bodies to some extent regular to optimal fitness.

Regular exercise is said to reduce to risk of diabetes, heart problems, various types of cancers etc.
8 0
3 years ago
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