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3 years ago

Combining a protective put with a forward contract generates equivalent outcomes at expiration to those of a:

Business

1 answer:

Juliette [100K]3 years ago

7 0

Answer:

Fiduciary call.

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.

Generally, when a protective put is combined with a forward contract it would generate equivalent outcomes at expiration to those of a fiduciary call.

This ultimately implies that, a fiduciary call combines both a call option and a bond that's risk free and matures on the expiry date of an option.

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The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state

horrorfan [7]

Answer:

B) demographic

Explanation:

Demographic segmentation refers to defining (or segmenting) a specific target market based on demographic variables such as gender, age, income, family status, marital status, education, ethnicity, religion, etc.

Since the Alabama Board of Tourism showed "traditional" families, it is obviously targeting families with their adds, and family status is one of the demographic variables.

7 0

3 years ago

Which of the following best describes vertical integration? A. sell products to a supplier or a distributor B. develop the abili

jasenka [17]

Answer: B

Explanation:

A vertical integration is where a company owns another company in the same production line.

For example a company that bakes bread has a farm where wheat is cultivated, a marketing company and retail locations for the sale of the bread.

The advantages of Vertical integration include:

a. It reduces costs.

b. It increases efficiency.

c. It gives the firm greater control of the production process.

A major disadvantage of vertical integration is it requires huge capital outlay.

7 0

3 years ago

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 16

DanielleElmas [232]

Answer:

Results are below.

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 12,000 + 87,000 - 23,000

COGS= $76,000

Traditional format income statement:

Sales= 14,000*16= 224,000

COGS= (76,000)

Gross profit= 148,000

Total selling expense= (20,000 + 14,000*1)= (34,000)

Total administrative expense= (13,000 + 14,000*1)= (27,000)

Net operating income= 87,000

Contribution format income statement:

Sales= 14,000*16= 224,000

Total variable cost= (76,000 + 14,000 + 14,000)= (104,000)

Contribution margin= 120,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (13,000)

Net operating income= 87,000

5 0

3 years ago

A promissory note

Sloan [31]

Answer: c. may be used to settle an accounts receivable.

Explanation: A promissory note is defined as a financial instrument that contains a written promise by the note issuer or maker to pay the note payee a definite sum of money at a specific future date or on demand and may be used to settle an accounts receivable (the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers and are listed on the balance sheet as a current asset). They are commonly used in businesses as a form of short term financing as they can be exchanged for cash at a future time when account receivables have been collected.

8 0

3 years ago

During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,026, $67,603

larisa86 [58]

Answer: $6,834

Explanation:

Given the following ;

Cash flow to creditors = $30,026

Operating Cashflow = $67,603

Net capital spending = $28,760

Beginning net working capital = $11,917

Ending working capital = $13,900

Therefore,

Net working capital = Ending working capital - beginning working capital

Net working capital = $(13,900 - 11,917) = $1,983

Cashflow from asset = (operating Cashflow - Net capital spending - net working capital)

Cashflow from asset = $67,603 - $28,760 - $1,983 = $36,860

Therefore,

Company's Cashflow to stockholders during the year = (Cashflow from asset - Cashflow to creditors)

$36,860 - $30,026 = $6,834

6 0

3 years ago