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
Arte-miy333 [17]
3 years ago
8

A client with a high risk tolerance anticipates that the market will remain flat for the next 3 months. Which position would pro

duce the maximum profit for this client
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer: A. Short Straddle

Explanation:

A Short Straddle is a strategy used in the derivative market of Options where the investor sells both a Call Option and a Put Option on the same stock with the same expiration date.

The logic behind this is that they do not expect the underlying stock to change significantly in price for the period of either the Call nor the Put. The goal therefore is to make profit from the buying fees/credit of both the Put and the Call whilst anticipating that neither of them.will be redeemed so the investor will keep both the stock and the buying fees/credit.

You might be interested in
A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually
skelet666 [1.2K]

Answer:

a) actual dollar = $60

b) Constant dollar of the 15th payment = $38.710

Explanation:

Facts from the question:

The Face value of the bond = $1,000

Nominal Interest rate = 12% and it compounded annually

General inflation rate = 6%

The question: Determine the 15th interest payment on the bond.

Step 1: The coupon for the amount of semi annual payment is as follows:

Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond

= (0.12/2) x 1000

= $60 -= Actual dollar amount

Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.

To calculate this=

Constant dollar amount of the 15th interest payment

= Actual dollar amount (above) / (1 + inflation rate)∧n

where n= the number of years = 7.5 years

= $60 / (1 + 0.06) ∧7.5

= $60/1.55

= $38.710

This means the constant dollar amount on that 15th payment = $38.710

3 0
3 years ago
1. Most angel investors expect a return on investment of
cupoosta [38]

Answer:

B

Explanation:

7 0
3 years ago
Drag the tiles to the correct boxes to complete the pairs.
vagabundo [1.1K]

Answer:

1. Reduced cycle time: reduced process time in different areas.

2. Increased visibility: real-time status or availability of any process or product.

3. Increased efficiency: faster execution of each process.

4. Better quality: high quality standards of products and processes.

Explanation:

In this scenario, Sheila and her team were able to successfully implement an IS in a hospitality organization; increased visibility, increased efficiency, better quality and reduced cycle time.

6 0
3 years ago
Can someone please help me
Fittoniya [83]

Answer: The answer would be $536.73

Explanation: Add up all the deduction amounts which will equal to 198.51, take away that amount from the 735.24 he earned and it will give you your answer of $536.73.

4 0
3 years ago
suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling for
Yuliya22 [10]

Answer:

9.98%

Explanation:

YTM is the estimated return expected from an investment held until its maturity. it is a long term yield which is expressed in annual term

Annual Payment = $500

Current price = $5,012

Yield to maturity = ( Annual payment / Current price ) x 100

Yield to maturity = ( $500 / $5,012 ) x 100

Yield to maturity = 0.0998

Yield to maturity = 9.98%

5 0
4 years ago
Other questions:
  • You are 50 years old and proud of having $75,000 invested in a mutual fund earning an impressive 17% per year. you want to retir
    13·1 answer
  • Wich type of financial institutions typically has a membership requirement ?
    11·2 answers
  • Meeting clients in person instead of talking with them on the phone can help to reduce _______ when you own your own business.
    8·1 answer
  • Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhe
    8·1 answer
  • In order to convince an organization to adopt security policies, it is necessary for a manager to have some proficiency in _____
    10·1 answer
  • Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available: Qu
    7·1 answer
  • Katniss works for the Panem Bureau of Economic Analysis. Panem produces three goods: bread and axes, as well as wheat, which is
    6·1 answer
  • How is it possible for nominal GDP to rise but real GDP to fall from one year to the next?
    6·1 answer
  • 3. A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yie
    14·1 answer
  • The economics discipline focuses on understanding trade-offs in decision making.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!