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.
Answer:
Explanation:
First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;
Maturity of the bond : N = 20
Annual coupon payment; PMT = 8%*1000 = 80
Face value; FV = 1000
Price of the bond ; PV = -1,050
then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)
Next, find the cost of equity (rE) using CAPM;
CAPM; r = risk free + beta (Market risk premium)
rE = 0.0450 + 1.20(0.0550)
rE = 0.0450 + 0.066
= 0.111 or 11.1%
Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;
w = weight of..
rD= pretax cost of debt
WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]
WACC = 0.07215 + 0.015771
= 0.0879
Therefore, WACC = 8.79%
The correct answer should be <span>Increase taxation and decrease spending
This would be the most efficient way to do this since you would get more money from taxes and they would lose less money because of lack of spending. People would probably be dissatisfied, but it would help the budget. </span>
In this situation, i will probably call 911 and directly report the situation to the police as soon as possible. That person may be there for some innocent resorts, but his/her behavior is really suspicious and it is better to take precaution rather than have to deal with potential unwanted consequences
I’m pretty sure, but forgive me if I’m wrong; it might be “C”. FEMA
