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Nuetrik [128]
3 years ago
13

A client has held a long position in BCD Common for several years and has seen a sizeable increase in price since initially buyi

ng the stock. The client fears that BCD is headed for a slight downturn in price and wishes to protect the profits that he holds from the previous increase. Which option strategy provides the MAXIMUM protection for this client?[A] This client would be best suited by buying calls on BCD.
[B] This client would be best suited by selling calls on BCD.
[C] This client would be best suited by buying puts on BCD.
[D] This client would be best suited by selling puts on BCD.
Business
1 answer:
loris [4]3 years ago
3 0

Answer:

C. This client would be best suited by buying puts on BCD

Explanation:

Buying puts on BCD is the best option strategy for protection of the profits

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The sales for​ January, February, and March are​ $150,000, $180,000 and​ $220,000, respectively. For any particular month of​ sa
Gekata [30.6K]

Answer:

Total cash= $193,000

Explanation:

Giving the following information:

Estimated sales ($):

January= $150,000

February= $180,000

March= $220,000

40% in cash from that same month of​ sales

50% in cash from the previous​ month's sales

10% in cash from the sales from two months ago

C<u>ash collection March:</u>

From March= 220,000*0.4= 88,000

From February= 180,000*0.5= 90,000

From January= 150,000*0.1= 15,000

Total cash= $193,000

3 0
2 years ago
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the f
drek231 [11]

Answer:

a. sharing information across the organization

Explanation:

A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.

In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.

This is a failure in the function of sharing information across the organisation.

Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer

4 0
2 years ago
A firm has $76,000,000 in debt, which accounts for 43% of their total funds raised; the after-tax cost of these funds is 6.10%.
Digiron [165]

11.55% is the weighted average cost of capital for these funds

Explanation:

Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =

             = 76000000/(76000000 + 100000000)

             = 43.18%

and proportion of equity =  1 - 43.18%  = 56.82%

Therefore, WACC =  0.4318 * 6.1 + 0.5682 * 15.7

                               = 11.55%

7 0
2 years ago
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
svlad2 [7]
The answer is Corporation.  Corporations is a legal entity of a group of investors/shareholders as governed by the Securities and Exchange Commission.  In the event of shortage of capital, the shareholders votes and agrees to sell some stocks in order to gain more capital. 
7 0
2 years ago
After hiring 151 units of the variable input, labor, a firm determines the MFC to be $.30 and the MRP to be $.33. The firm shoul
zhuklara [117]

Answer:

Option (c) is correct.

Explanation:

Labor (Variable input) hired = 151 units

After hiring this much units of labor, a firm incurred:

Marginal cost of hiring (MFC) = $0.30 and marginal product of labor (MRP) = $0.33

The firm continuing hiring new labor until the point at which marginal cost of hiring labor is equal to the marginal product of labor.

In this case, MFC is less than the MRP, so firm should increase the use of labor till the MFC becomes equal to the MRP.

7 0
2 years ago
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