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dem82 [27]
3 years ago
8

1. The primary purpose of a protective put is to: A) ensure a maximum purchase price in the future. B) offset an equivalent call

option. C) limit the downside risk of asset ownership. D) lock in a risk-free rate of return on a financial asset. E) increase the upside potential return on an investment..
Business
1 answer:
Grace [21]3 years ago
6 0

Answer: C) limit the downside risk of asset ownership

Explanation:

The protective put is a strategy I risk-management which is utilized by the investors in order to help prevent a loss in an asset or stock.

Protective puts helps to act as an insurance by giving protection from the decline of the price of the asset.

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A store will give you a 2.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the ful
OleMash [197]

The implicit borrowing rate is 31.4%.
Given that if payment was made in cash today, the store would reduce the cost of the product by 2.5 percent. This implies that the price you must pay at that time is $195.5, for instance, if the cost of the things is perhaps $200.
If the price is still $200, you will have to pay $200 at the end of the month. A difference of $200 - $195.5 = $3.5 if we compare at the end of the month versus if you pay immediately.This results in an increase of (3.5/196) x 100% = 1.79 %. An increase to bring the price back to $200.
Considering that a year has 12 months, the implicit borrowing rate at the conclusion of that year will be;

([(200/195.5)(12)] - 1) at 100% equals 31.4%.

To learn more about the Implicit Borrowing rate please visit -
brainly.com/question/18596505
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5 0
2 years ago
Restructuring organizations to retain the most essential employees is known​ as:
AVprozaik [17]

There are several types of organization restructuring:

<span>1.      </span>Downsizing

<span>2.      </span>Starbust

<span>3.      </span>Verticalization

<span>4.      </span>De-layering

<span>5.      </span>Business process re-engineering

<span>6.      </span>Outsourcing, and

<span>7.      </span>Virtualization

<span>Among them, the type of restructuring to retain the most essential employees is known as de-layering.  D</span><span>e-layering involves breaking down the typical pyramid setup into a flat organization. Its purpose is to thin out or lessen the top layer of unproductive and highly paid ‘white collar’ personnel. It promotes innovation, builds customer intimacy and increases consumer satisfaction. The main advantage is that the decision-making process becomes more effective and shorter.</span>

4 0
3 years ago
When a corporation wants to raise funds by issuing new stocks or bonds, it generally uses the services of _____.
choli [55]

Answer:

The correct answer is e. an investment banker

Explanation:

Investment bankers are behind some of the biggest businesses that develop in the stock market. These banking professionals are hired by companies to obtain money or capital in the stock market for the main milestones that will occur in the existence of a corporation. Once the relationships between corporate management teams and investment banks are established, the same teams often work together for subsequent events in the stock market. Investment bankers decide how to value companies and offers, and impact opportunities for investors.

6 0
3 years ago
Which best describes what a market index does?
elixir [45]

Answer:

A market index is an indicator of the price movement of a certain sector in an economy. Statistical measures are used to average and calculate these numbers. Consumer price index, down Jones industrial average and s&p 500 are the most famous indices.

These factors affect the stock prices,

market performance

the company’s financial health

the economy

Overall market and industry performance allomg with.the functioning capacity of the overall economy has a tremendous impact on the stock prices as well. Mainly it affects the foreign investments.

Explanation:

4 0
3 years ago
__________ is a form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to
vladimir2022 [97]

Answer:

Postponement  warehousing,

Explanation:

Postponement  warehousing, is form of warehousing that combines  classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment.

hub and spoke, consists of one hub (central location), at which the warehouse is located and it is transported to different locations through routes called spokes.

assortment is a form of warehouse in which a wide array of goods are held close to the source of demand to ensure short lead time.

spot stocking refers to company's goods stocked in a small warehouse for easy access. Often done seasonally.

5 0
3 years ago
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