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Lapatulllka [165]
4 years ago
12

What can be used to replicate a protective put strategy?

Business
1 answer:
Sliva [168]4 years ago
3 0

Answer:

call option and riskless investment

Explanation:

A protective put strategy is a term often referred to as married put that describes a form of risk-management strategy, whereby an investor used options contracts to protect the shares of a stock or other asset against a loss.

A call option and riskless investment, on the other hand, is a term that describes an agreement to between buyer and seller to exchange a tradeable finance asset at a set price. It is considered to have a net pay off similar to protective put strategy.

Also, a riskless investment is a theoretical term that describes a form of investment such as savings, with a specific rate of return and less to no chance of default.

Hence, what can be used to replicate a protective put strategy is CALL OPTION and RISKLESS INVESTMENT

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3 years ago
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Assume that Windsor, Inc. uses a periodic inventory system and has these account balances:
erastovalidia [21]

Answer:

Net Purchase = $365,000

Cost Of Goods purchased = $382,100

Explanation:

given data

Purchases =  $383,500

Purchase Returns and Allowances =  $12,100

Purchase Discounts = $6,400

Freight-in = $17,100

to find out

net purchases and cost of goods purchased

solution

we know that Net Purchase is express as

Net Purchase = Purchases - Purchase Discount - Purchase Return and Allowances     .........................1

put here value in equation 1 we get

Net Purchase = $383,500 - $6,400 - $12,100

Net Purchase = $365,000

and

Cost Of Goods purchased = Net Purchase + Freight         ....................2

so put here value

Cost Of Goods purchased = $365,000 + $17,100

Cost Of Goods purchased = $382,100

3 0
3 years ago
Mason bought a rotisserie in preparation for a party he was planning. When he put a chicken on the rotisserie, it would not rota
Olegator [25]

Answer:

Yes Mason has recourse

Explanation:

In this scenario Mason bought a rotisserie that did not work as expected. That is it did not rotate as it should thereby causing burning of the chicken.

Even is the seller of the rotisserie did not give a warranty to cover the product, there is an implied warranty that covers the use of goods.

Implied warranty is the minimum requirement expected from the use of a product. For example a.television is expected to come on when in use..

So Mason has a recourse because he is covered by implied warranty.

6 0
4 years ago
A car, a house, and a boat are examples of what type of product?
Sloan [31]
They all are woody products being made up of wood.
8 0
4 years ago
A company purchases new equipment for $72,000 cash on August 1, 2018. At the time of purchase, the equipment is expected to be u
Likurg_2 [28]

Answer:

The adjusting entry for depreciation on December 31, 2018:

Debit Depreciation expense $7,500

Credit Accumulated depreciation $7,500

Explanation:

The company purchases new equipment on August 1, 2018. At the time of purchase, the equipment is expected to be used in operations 48 months. The company depreciates the equipment evenly over the 48 months ($1,500/month). From August 1, 2018 to December 31, 2018, the equipment is expected to be used for 5 months.

Depreciation expense for 2018 = $1,500 x 5 = $7,500

The adjusting entry for depreciation on December 31, 2018:

Debit Depreciation expense $7,500

Credit Accumulated depreciation $7,500

6 0
4 years ago
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