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
Artist 52 [7]
3 years ago
8

You own $75,000 worth of stocks, and you are worried the price may fall by year end in 6 months. You are considering using eithe

r puts or calls to hedge the position. Given this, which of the following statements is (are) correct?I. one way to hedge your position would be to buy putsII. one way to hedge your position would be to write callsIII. if major stock price declines are likely, hedging with puts is probably better than hedging with short callsA. I onlyB. II onlyC. I and II onlyD. I, II, and III
Business
2 answers:
Assoli18 [71]3 years ago
7 0

Answer:

Answer is D. I, II, and III

Refer below.

Explanation:

You own $75,000 worth of stocks, and you are worried the price may fall by year end in 6 months. You are considering using either puts or calls to hedge the position. Given this, the following statements are correct:

I, II, and III

const2013 [10]3 years ago
7 0

Answer:

The correct answer is D. I, II. and III

Explanation:

<em>From the question given, </em>

<em>we say that  All the three options are right or correct  We can go for either to  write calls or buy puts and in case there are more probability of vital decreasing  in prices of stock then it is better to hedger with puts rather than hedger with short calls.</em>

You might be interested in
HELP!!!
Anarel [89]

Answer:

About 250 ; 2000 bicycles

Explanation:

Opportunity cost simply means the loss incurred on a certain option when the alternative opruoonos chosen.

The opportunity cost of increasing shoe production from 10,000 to 20,000 pairs

The value of 20,000 (x axis) on the y axis is about 3750

Value of point A in the y - axis = 4000

Hence opportunity cost = (4000 - 3750) = 250 bicycles

B.)

The opportunity cost of increasing shoe production from 50,000 to 60,000 pairs

The value of 60,000 (x axis) on the y axis is about 0

Value of point B in the y - axis = 2000

Hence opportunity cost = (2000 - 0) = 2000 bicycles

3 0
3 years ago
Most students are on strike. Very few students were crossing the picket line. In fact, the postal employees refused to deliver m
brilliants [131]

Answer:

TRUE.

Explanation:

A secondary boycott is an attempt to influence the actions of one business by exerting pressure on another business. It is a situation where one refuses to do business with a company in an attempt to persuade them not to do business with another company where the employees are striking or involved in a disagreement with their employees.

Typically a labor union involved in a dispute with an employer will arrange a secondary boycott if less drastic measures to reach a satisfactory accord with the employer have been ineffective. Secondary boycotts have two main forms: a secondary consumer boycott, in which the union appeals to consumers to withhold patronage of a business, and a secondary employee boycott, in which the union dissuades employees from working for a particular business.

Since the postal employees refused to deliver mail claiming that they were honoring the strike for their fellow service union members. Therefore, it is TRUE that the postal employees were participating in a voluntary secondary boycott.

4 0
3 years ago
Jamie purchased a 50% general partnership interest in Partnership M for $40,000 in Year 1. To finance operations, Partnership M
klio [65]

Answer:

$90,000

Explanation:

Calculation to determine what Jamie’s at-risk limitation on losses is:

Using this formula

Risk limitation on losses=[Partnership M +(General partnership interest× Recourse debt agreement)]

Let plug in the formula

Risk limitation on losses= [$40,000 + (50% × $100,000)]

Risk limitation on losses=($40,000+$50,000)

Risk limitation on losses=$90,000

Therefore Jamie’s at-risk limitation on losses is:$90,000 and the reason why Jamie’s at-risk limitation on losses was the amount of $90,000 was because of his share of the recourse debt of the amount of $100,000 as well as the cash amount of $40,000 he invested.

4 0
3 years ago
An author has signed a contract in which the publisher promises to pay her $10,000 plus 20 percent of gross receipts from the sa
andre [41]

Answer:

False. The author will NOT prefer a higher book price than will the publisher.

Explanation:

It is evident from the diagram -please check the attached image to the exercise- that the author wants to set a lower price than the publisher (to sell the higher quantity) .

4 0
3 years ago
The impact fiscal multiplier is A. usually estimated to have an average value of 2. B. usually estimated to have an average valu
Delicious77 [7]

Answer:

D. the multiplier effect of a fiscal policy action that applies to a​ long-run period after all influences on equilibrium real GDP have been taken into account.

Explanation:

The fiscal multiplier measures the effect that increases in fiscal spending will have on a nation's economic output, or gross domestic product (GDP).

6 0
3 years ago
Other questions:
  • Experience surveys differ from surveys conducted as part of ________ in that there is usually no formal attempt to ensure that t
    9·1 answer
  • Andy worked weekends for a month to complete a difficult project. he hoped that he would receive a raise if he successfully comp
    15·1 answer
  • Ticketsales, Inc., receives $5,000,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket
    9·2 answers
  • Until recently you worked as an accountant earning $55,000 annually. Then you inherited a piece of commercial real estate bringi
    10·1 answer
  • When reimbursing the petty cash fund: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. No expense
    11·1 answer
  • How does a global economy impact you?
    12·1 answer
  • A project activity has an earliest completion time of 5, an activity time of 3, and a latest completion time of 6. What is the s
    9·1 answer
  • Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overh
    11·1 answer
  • According to the globe project, in-group collectivism refers to:.
    9·1 answer
  • Make detailed Business execution plans with proper Roadmap on hospital collaboration.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!