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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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Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually made and sold 13,000
Aleks04 [339]

Answer:

$65,000 Favorable  

Explanation:

  • Volume variance compute the difference due to volume of sales budgeted and actual sales qty.

  • Budgeted Selling pricec =780000 /12000 = 65

  • Sales volume variance = Budgeted Selling price (Actual sales qty-Budgeted Sales qty)  

65.00 (13000-12000) = 65000 Fav

 

Answer is $ 65000 Favorable      

5 0
3 years ago
Clabber Company has bonds outstanding with a par value of $123,000 and a carrying value of $111,100. If the company calls these
White raven [17]

Answer:

The gain on retirement = $4,600

Explanation:

The gain or loss on retirement = Carrying Value of the Bonds -  Call price of the Bonds

The gain or loss on retirement = $111,100 -  $106,500

The gain on retirement = $4,600

Note: Par value will not be taken for the calculation of the above

4 0
2 years ago
Where does the 32 come from in cash received for common stock issued
worty [1.4K]

A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.

Multiply the number of shares issued by the price per share. Doing this calculation gives you the amount of cash raised by the sale of the stock. For example, if the company issues 100 shares at $10 per share, the result is $1,000 of additional capital raised from stock issuances.
4 0
2 years ago
A count of supplies indicated that $104 of supplies had been used.
tankabanditka [31]
It can be assumed that $104 worth of Supplies have been used?
7 0
3 years ago
When iTunes sells a song or movie, it must record the transaction in accounts. Which accounts might iTunes use when it sells a s
Kay [80]

Since the actual process of the transaction is instantaneous, and its takes the money directly out of your account, the account they're dealing with is most likely Revenue.

Accounts Receivable is also another option that may come to mind, but remember that in this account, the seller is waiting for payment. Once the responsible party pays the seller, A/R is credited (decreased) and Revenue is debited (increased).

With iTunes (as stated previously), the transaction happens right then and there. We pay cash and iTunes gives us the song/movie/album/etc. Therefore, the only logical answer would be <u>Revenue</u>. In this case, <em>Sales Revenue</em> since we're dealing with a type of retailer and not a service.

7 0
3 years ago
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