1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ann [662]
4 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]4 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.

You might be interested in
Kansas Enterprises purchased equipment for $81,000 on January 1, 2021. The equipment is expected to have a five-year service lif
MrRissso [65]

Answer:

Depreciation expense for 2021 will be $14700

Explanation:

The straight line method charges a constant depreciation expense each period throughout the useful life of the asset. The depreciation expense per period under the straight line method is calculated as follows,

Depreciation expense = (Cost - Residual value) / Useful life of the asset

Depreciation expense = (81000 - 7500) / 5

Depreciation expense = $14700

7 0
3 years ago
Consider the information for First National Bank: it has $80 million in checkable deposits, $15 million in deposits with the Fed
finlep [7]

Answer:

$64 million

Explanation:

The excess reserves available for the bank to lend if the minimum reserve ratio is 20% is <u>$64 Million.</u>

6 0
4 years ago
Read 2 more answers
There is a new shoe company called "Tim's Shoes" that sells via online including an app. Just put in your size, see the selectio
Dmitrij [34]

Answer:

Direct distribution

Explanation:

Direct distribution refers to a direct sales strategy where a company delivers its products directly to its costumers. This way the company avoids using intermediaries and retailers, and is able to either reduce distribution costs or increase profit margins.

8 0
3 years ago
The employment potential of the Education and Training career cluster in 2020 compared to other clusters is expected to be...
Marina86 [1]

Answer:

below average

Explanation:

7 0
3 years ago
Read 2 more answers
David Blehert and his research team captured 117 healthy bats to study in the laboratory and divided them into four groups. Grou
Lelechka [254]

Answer: a) the type of exposure to Geomyces destructans; whether the bats became sick with WNS

Explanation: The independent variable refers to the variables employed by the experimenter to use as a tool to observe changes in the dependent variable. In an experimental study, the independent variables are usually the different controls adopted for the experiment. In the scenario above, the independent variable is the type of exposure to Geomyces destructans which each of the groups are exposed to. These variation in control in which the different groups are exposed to may result in different response within the group which is the change in WNS. These response due to exposure to different control is called the dependent variable.

6 0
3 years ago
Other questions:
  • You are a monopolist who sells textbooks to undergraduate students. Currently you sell 100 books at a price of​ $100 each, for r
    11·1 answer
  • Tracy has an interview with a disorganized, unprepared recruiter and concludes that the company does not have a very professiona
    11·1 answer
  • The california raisin advisory board used to run ads featuring "the california raisins," a fictitious r&amp;b musical group comp
    12·1 answer
  • Sam would like to use his extensive stamp collection as collateral for a secured loan. Sam has documentation that says his stamp
    7·1 answer
  • What percentage of the market does the automobile industry control?​
    12·1 answer
  • Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,400 of dir
    10·1 answer
  • The _____ lets you cancel a purchase within three days if it was purchased from a door-to-door salesperson. warranty guarantee C
    6·1 answer
  • Suppose the Herfindahl indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that: Group
    9·1 answer
  • You are given the following information on Kaleb's Heavy Equipment: Profit margin 6.5 % Capital intensity ratio .74 Debt-equity
    13·1 answer
  • In the week to come, a bank expects $55 million in incoming deposits, $75 million in acceptable loan requests, $35 million in mo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!