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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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The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This
kvv77 [185]

This is a value assessment in the form of a subjective statement. According to this viewpoint, the period of jobless benefits should be increased. It cannot be verified by the evidence at hand. Therefore, it is a declaration of norm. In the case of a positive assertion, the statement is factual and can be put to the test using the information at hand. However, this claim is subjective and dependent on opinion.

<h3>What is unemployment?</h3>

When someone actively searches for work but is unsuccessful, they are said to be unemployed. It is regarded as one of the important indicators of the health of the economy. The most popular technique for calculating a nation's unemployment rate is the unemployment rate. This may be calculated by simply dividing the entire population that makes up a country's work force by the number of unemployed persons. Governments at the federal, state, and municipal levels frequently work to provide job opportunities to those who fit the requirements they have established. Typically, work is made available to groups of people for a set minimum wage that is sufficient for basic survival and gives them more opportunities to find permanent jobs.

To know more about unemployment, visit;

brainly.com/question/14227610

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7 0
1 year ago
Because advertising is often designed to add ________ value to a product or brand, it plays a more important communications role
wlad13 [49]

Answer:

The correct answer is Psychological.

Explanation:

Advertising is not only limited to advertisements in magazines, newspapers, radio, television or the Internet. In fact, it is practically in everything around us. The way to place the products in the department stores, the color and size of the potato chip packages, the price of the clothes, the subtlety of the words on the radio ... Everything that makes a product attractive and steals our attention serves as a powerful means to advertise it.

Therefore, all of us, when we buy or consume, seek to distinguish ourselves from others. In addition, this desire to stand out, to be different and unique, is what advertising psychology acts on. And when these individual differences are established, other concepts such as motivation arise in parallel.

8 0
3 years ago
Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $27.50;
lubasha [3.4K]

Answer:

B. 9.84%

Explanation:

Given that

D1 = 1.25

P0 = 27.50

g = 5%

F = 6%

Recall that

Cost of equity raised = (D1/P0 - [F × P0]) + g

Thus,

= 1.25/27.50 - [0.06 × 27.50] + 0.05

= 1.25/ 25.85 + 0.05

= 0.04835 + 0.05

= 0.09835

= 0.0984

=9.84%

8 0
3 years ago
Read 2 more answers
Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts installed in cu
Masteriza [31]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Estimates:

Direct labor-hours required to support estimated output 18,000.

Fixed overhead costs $ 198,000.

Variable overhead cost per direct labor-hour $ 1.00

A) overhead rate= (fixed + variable cost)/direct labor hour

Overhead rate= (198000 + 1*18000)/18000= 12

B) Direct materials $ 719

Direct labor cost $ 177

Direct labor-hours used 7

Manufacturing overhead= $1* 7= $7

8 0
3 years ago
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an
Alex

Answer:

The withdrawals will be of  $ 11,379.014 per month

Explanation:

Future value of the annuities:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C         750.00

time 360(30 years x 12 monhs per year)

rate 0.008333333 (10% / 12 months)

750 \times \frac{1-(1+0.00833)^{-360} }{0.008333} = PV\\

PV $1,695,365.9436

C \times \frac{(1+r)^{time} -1}{rate} = PV\\

C         250.00

time 360 (30 years x 12 monhs per year)

rate             0.005 (6% / 12 months)

250 \times \frac{(1+0.005)^{360} -1}{0.005} = PV\\

PV $251,128.7606

Total 1,695,365.84 + 251,128.76 = 1.946.494,6‬

and from here we withdraw for 25 years:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 1,946,495

time 300 (25 years x 12 months)

rate 0.004166667 (5% / 12 months)

1946494.6 \div \frac{1-(1+0.004167)^{-300} }{0.004167} = C\\

C  $ 11,379.014

6 0
3 years ago
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