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worty [1.4K]
3 years ago
13

"A customer is long the Swiss Franc at a cost of $.60 per SF. The customer wishes to place a collar on the position using PHLX S

F FLEX options. To create the collar, the customer would:"
Business
1 answer:
AURORKA [14]3 years ago
3 0

Answer:

To create the collar, the customer would: <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.</u>

Explanation:

The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).

When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.

This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.

Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call</u> to create the collar.

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Snezhnost [94]

Answer:

(a) What factors determine a  company's total revenue?

Sales.

(b) Do higher  lead to increased revenues for a company?

Yes, a <u><em>Lead</em></u> is a person or company that might finally become a client, and drive the sales up.

6 0
2 years ago
On March 14, Teal Co. accepted a 120-day, 6% note in the amount of $10,000 from AZC Co., a customer. On the due date of the note
Y_Kistochka [10]

Answer:a credit to  Interest revenue for $200

Explanation:

Interest =  Principal x rate x time ( period )

= $10,000 x 6% x 120/360

=$200

    Account titles and explanation               Debit Credit  

                       Cash                                $10,200  

    Note receivable                                          $10,000  

    Interest revenue                                           $200

Therefore, The journal entry that Teal would make to record payment of this note would include a credit to  Interest revenue for $200

5 0
2 years ago
In the ________, the perfectly competitive firm will react to profits by ________
ElenaW [278]

In the long run, perfectly competitive firms will react to profits by increasing production.

Firms in a perfectly competitive world earn zero profit in the long run. While firms can earn accounting profits in the long run, they cannot earn economic profits.

In the long run, perfectly competitive firms will react to profits by decreasing production. CORRECT: In the long run, perfectly competitive firms will respond to losses by exiting the market. In the long run, perfectly competitive firms will respond to losses by reducing production.

A perfectly competitive market achieves long‐run equilibrium when all firms are earning zero economic profits and when the number of firms in the market is not changing.

In the long run, profits and losses are eliminated because an infinite number of firms are producing infinitely divisible, homogeneous products. Firms experience no barriers to entry and all consumers have perfect information.

Learn more about a perfectly competitive firm here: brainly.com/question/25327136

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8 0
1 year ago
Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes:_
Karolina [17]

Answer:

C. $11,000

Explanation:

For computational purposes, both the Mortgage interest as well as the miscellaneous itemized deducted qualify as deductions based on the Schedule A which is the regular tax purposes.

However, only Mortgage interest will be allowable itemized deduction because miscellaneous itemized deductions fall under the category of adjustments and as such do not qualify for deductions under the AMT which is the Alternative Minimum Taxable Income.

Based on the explanation, only $11,000 of mortgage interest qualifies.

5 0
3 years ago
Which of the following are etiquette guidelines that promote positive workplace conversations? Check all that apply. a. Give sin
Gelneren [198K]

Answer:

The correct answers are letter "A", "B", "C", "D", and "E".

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Inside the work frame, it is important to follow certain etiquette guidelines to create a good environment atmosphere. Those practices include giving since praise and avoiding negative commentaries, listening to coworkers and supervisors advice to learn the maximum possible of our duties, choosing correct topics to talk about dismiss personal matters, and using correct titles when talking to our colleagues and higher-rank personal.

4 0
3 years ago
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