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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>

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Which of the following is true concerning federal budget deficits? I. The IRS spends more than it collects in taxes in a given y
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Answer:

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Suppose the Alaskan king crab harvest is unregulated and any person with a crab boat and some diesel fuel can go offshore, lower
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Answer: A. Alaska auctions a limited number of licenses to harvest king crab.

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ou are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days.
Taya2010 [7]

The net present value of this lockbox arrangement is $1,205,378.06.

Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:

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Therefore, the net present value of this lockbox arrangement is $1,205,378.06.

Learn more about maths in brainly.com/question/25903947

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