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ra1l [238]
3 years ago
6

If you purchase a straddle on euros, this implies that you: A) finance the purchase of a call option by selling a put option in

the euros. B) finance the purchase of a call option by selling a call option in the euros. C) finance the purchase of a put option by selling a put option in the euros. D) finance the purchase of a put option by selling a call option in the euros. E) None of the above.
Business
1 answer:
Elena L [17]3 years ago
8 0

Answer:

The correct answer is E) None of the above.

Explanation:

when you purchase a straddle on euros, this means you simultaneously buy a call option and a put option on the same common stock on euros bearing a similar expiration date, and the same place where the security can be bought and sold. What this means is, you tend to make a profit once the common stock makes a sharp move. Normally, call options give investors the liberty to sell stock expecting a rise in price, while a put option gives the investors want to sell their stock because they predict a fall in price. These two option contracts aim at making investors make profits.

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The MU/P ratio for good X is greater than the MU/P ratio for good Y. To achieve consumer equilibrium, the consumer reallocates d
uysha [10]

Answer:

Falls:rises.

Explanation:

The MU/P (Marginal Utility/Price) ratio for good X is greater than the MU/P (Marginal Utility/Price) ratio for good Y. To achieve consumer equilibrium, the consumer reallocates dollars from the purchase of good Y to the purchase of good X. If the law of diminishing marginal utility holds, the marginal utility of good X falls and the marginal utility of good Y rises.

The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

Hence, the marginal utility of good X falls and the marginal utility of good Y rises because the consumer no longer derive satisfaction or benefits (utility) from the consumption of good X while he would switch to good Y for satisfaction.

7 0
3 years ago
Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
ValentinkaMS [17]

Answer:

$0.26

Explanation:

diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)

net income = $330,000

preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.

weighted average outstanding shares:

  • January 1 = 700,000 x 12/12 = 700,000
  • March 1 = 200,000 x 10/12 = 166,666.7
  • total weighted average = 866,666.7

diluted shares = 2,000 preferred stocks x 200 = 400,000

diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26

8 0
3 years ago
It is always possible to identify all the causes of a problem completely. please select the best answer from the choices provide
Rasek [7]

It false that the causes of a problem can always possible to identify completely.

<h3>What is problem solving?</h3>

This is defined as the process of finding solution to a task that seems difficult. It is a skill, hence applied after a problem has been identified.

Hence, It false that the causes of a problem can always possible to identify completely.

Learn more about problem solving here : brainly.com/question/23945932

#SPJ4

8 0
2 years ago
Sari, a movie theater manager, recently implemented a policy stating that workers who are willing to work a double shift on Frid
e-lub [12.9K]

Answer:

soldiering

Explanation:

According to Taylor, is the slow working because the workers who are paid the same amount , will work at the slowest pace. Giving bonuses is a way to mitigate this.

8 0
3 years ago
Read 2 more answers
A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is consid
julsineya [31]

Answer:

CC100  has $31.25 per hour

CC11O has $250 per hour

CC120 has $62.5 per hour

CC190 has $62.5 per hour

Explanation:

The IDC rate for each department would be the department IDC allocated divided by operating hours as shown below:

CC100

IDC rate=$25,000/800=$31.25 per hour

CC110

IDC rate=$50,000/200=$250 per hour

CC120

IDC rate=$75,000/1200=$62.5 per hour

CC190

IDC rate=$100,000/1600=$62.5 per hour

Judging from the IDC rates of the departments,department CCC110 seems to have the highest IDC rate per hour,which implies that each hour is charged with $250 against the CC100 where each operating hours is just $31.25.

The higher the IDC rate in a department the higher the cost of the output of that department since the cost has to be recovered from output.

7 0
3 years ago
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