Poor business communication is characterized by:
writing that prevents a reader from guessing information.
No, you do not have to own stocks yourself to be impacted by the change of the markets. Anybody who owns stocks AND run businesses that YOU go too will impact YOU dramatically. If stock prices drop, the amount of money they have will drop considerably, which means they have less money for merchandise. If they don't have merchandise, the businesses will go out, and you will not have anyplace to go too for your needs (for food, medicine, etc)
hope this helps
Th increase in Gerald's income is a problem because the percentage increase in his income is lower than the increase in inflation. This means that the purchasing power in Gerald's income is lower.
Inflation is when the general price levels in an economy rises. Inflation reduces the purchasing power of money. The inflation rate in the US in 2020 was 1.2%.
Let us assume that Gerald's income is $1000.
After the raise, his income becomes: (1.02 x 1000) = $1020
As a result of the inflation, the increase in income needed to keep purchasing power constant is: (1.03 x $1000) = $1030.
The increase in Gerald's income is less than the inflation rate. This means that the purchasing power of Gerald would be lower.
To learn more about inflation, please check: brainly.com/question/19170370?referrer=searchResults
Answer: $498
Explanation:
A Put is an option that will only be exercised if the price of the underlying security which is the stock in this case, falls below the current price of $58.
This means that we will not include the 70% chance of increase in our calculation.
In a contract, there are 100 shares.
Expected profit = Contract price - (Prob. of dropping by 10% * 10% of stock) - (Prob. of dropping by 20% * 20% of stock)
= 730 - ( 20% * 10% * 58 * 100) - (10% * 20% * 58 * 100)
= 730 - 116 - 116
= $498