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Ann [662]
3 years ago
6

Which of the following options strategies would be best for an investor interested in maintaining his long position in the marke

t while getting maximum downside protection?
Business
1 answer:
9966 [12]3 years ago
8 0

Answer:

buying puts

Explanation:

A put option is a sale option. It gives the buyer the right (but not the obligation) to sell an asset in the future to the seller of the option at a previously determined price.

The owner or buyer of a put option benefits from the option if the underlying asset falls, that is, if when the put option expires, the asset (a share for example) has a price lower than the agreed price . In that case, the option buyer will exercise his right and sell the asset at the agreed price and then buy it at the current market price, earning the difference.

If the price turns out to be higher than the agreed price, known as the strike or strike price, the buyer will not exercise his right and will simply have lost the premium he paid to acquire the option. Therefore, your benefit may be unlimited, but your loss is limited to the premium you paid.

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Jessica simpson has decided to open a small fast food place that specializes in buffalo wings. to do so she must resign from her
In-s [12.5K]

Answer: Jessica's implicit costs are $46,000.

Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.

In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are:

Total implicit cost = 40000+6000 = 46000

6 0
2 years ago
Leslie has developed a new kind of running shoe, and now she is trying to decide where to sell it. Which of the 4Ps of marketing
Crank
A. Price : hope) ich
6 0
3 years ago
Read 2 more answers
What is a nonprofit corporation, and how is it different from a C corporation?
nalin [4]

Answer:

A corporation is to make profit

non-profit coorporation don't have any shareholders, so they serve a different function. Thier focus is on something other than making profit

3 0
2 years ago
Read 2 more answers
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at
balandron [24]

Answer:

Transactions Units Unit Cost

a. Inventory, Beginning 300 $ 14

b. Purchase, April 11 950 12

c. Purchase, June 1 850 15

d. Sale, May 1 (sold for $42 per unit) 300

e. Sale, July 3 (sold for $42 per unit) 630

f. Operating expenses (excluding income tax expense), $18,200

1 and 2) When you use a periodic inventory method, cost of goods available for sale and ending inventory are the same. They differ only when you use a perpetual inventory.

ending inventory = 1,170 units

Ending inventory under FIFO:

$28,350 - $11,760 = $16,590

Ending inventory under LIFO:

$28,350 - $13,710 = $14,640

Ending inventory under weighted average:

$28,350 - $12,555 = $15,795

3) total units sold = 930 units

COGS under FIFO:

(300 x $14) + (630 x $12) = $11,760

COGS under LIFO:

(850 x $15) + (80 x $12) = $13,710

COGS under weighted average:

($28,350 / 2,100) x 930 = $12,555

4) Income statement under FIFO

Sales revenue                  $39,060

COGS                                <u>($11,760)</u>

Gross profit                       $27,300

Operating expenses       <u>($18,200)</u>

Operating income              $9,100

Income statement under LIFO

Sales revenue                  $39,060

COGS                                <u>($13,710)</u>

Gross profit                       $25,350

Operating expenses       <u>($18,200)</u>

Operating income               $7,150

Income statement under weighted average

Sales revenue                  $39,060

COGS                               <u>($12,555)</u>

Gross profit                       $26,505

Operating expenses       <u>($18,200)</u>

Operating income              $8,305

6) FIFO minimizes operating income, therefore, minimizes income tax expense.

4 0
3 years ago
Use your understanding of the strategic management process to complete the sentences below.
pantera1 [17]

A firm’s <u>Strategy</u> is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals.

Explanation:

A firm’s <u>Strategy</u> is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals.

By acquiring a technology company that develops smartphone apps, a video-streaming business hopes to achieve <u>Synergy </u>, combining its video rights with mobile technology to increase profits.

<u>Example</u>

Drybar, which started in Brentwood, California, in 2010, is a hair salon catering entirely to people with curly or frizzy hair who want their hair straightened. No cuts, perms, or coloring happen here. The store now has over 40 locations.-<u>Target Customer</u>

<u></u>

Applewood Seed Co. of Colorado has fifty years of experience growing and supplying native wildflowers, grasses, and herbs to seed distributors, landscapers, golf courses, state highway departments, parks departments, government agencies, garden centers, mining companies, hydroseeders, and reclamation companies. Applewood has both an in-depth horticultural knowledge of native plants and the ability to supply in bulk-<u>This statement is an example of exploit core competencies</u>

<u></u>

<u></u>

A meditation instructor partners with a technology developer to market relaxation apps featuring soothing natural sounds and guided meditation exercises. The tech expert writes the code, and the meditation instructor develops the apps’ content.-<u>This is an example of building up the Synergy</u>

<u></u>

<u></u>

4 0
3 years ago
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