Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000
.
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
Answer:
Yes.
I agree with the statement that "Persistent long-term growth is most achievable in moderate rates."
Explanation:
For instance, Company B may not be motivated to continue on its growth trajectory because it has doubled in size in a few years. The reason for this demotivation is that to achieve further growth may not become a motivator and it may not be repeatable, with management relaxing its growth efforts. Companies that achieve persistent long-term growth usually grow at moderate rates.
Yes, the mandated reporter employee is required to file the suspected child abuse report and immediately inform their supervising administrator of the alleged inappropriate conduct. This is further explained below.
<h3>What is
inappropriate conduct?</h3>
Generally, Insulting, threatening, demeaning, malevolent, degrading, or offensive language, behavior, or gestures against a person or group is Inappropriate Conduct.
In conclusion, there is an obligation on the part of the mandated reporter to disclose any suspicions of child abuse and to notify their immediate supervisor of the situation.
Read more about inappropriate conduct
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Other part of question attached
Answer and Explanation:
Answer and explanation attached
Answer:
Explanation:
Porter's generic strategies determine how the company will gain competitive advantage within the selected market. Lower cost, differentiated or focus strategies could be included. The company chooses one of the two types of competitive advantages either by lower costs than competition or by differentiating between customers' value to achieve higher prices. A company also chooses two types of products that offer its products to selected market segments or industry levels and offer products in many market segments. The generic strategy reflects the choices made by both the type and the degree of competitive advantage.
1)Cost Leadership Strategy: This generic strategy requires you to be the cheapest producer in an industry for a certain level of quality. The firm sells its products at a price higher than its competitors or below average industry prices to gain market share. In the case of price war, the firm may gain some profit while suffering from competition. Even if there is no price war, firms that can produce cheaper in the time of industry growth and falling prices will remain profitable for longer. Cost leadership strategies generally target the wider market.
Each common strategy has risks, including low cost strategies. For example, other firms may also reduce costs. As technology develops, competition can increase production power and thus eliminate competitive advantage. In addition, many companies that implement a focus strategy and target different narrow markets may earn less in their segments and gain significant market share as a group.
2)The differentiation strategy requires the development of a unique product or service for its customers and offers unique features that recognize whether customers are better or different than their competitors. The added value of the product with the uniqueness of the product may allow the company to earn a premium for the product. The risks associated with differentiation strategies include imitating competitors and changing customer tastes. In addition, different firms that implement focus strategies can achieve greater diversity in market segments.
3) Focus strategies are focused on a narrow segment and seeks to achieve cost advantage or differentiation in that segment. The main pillar is better service, focusing on the needs of the group. Using a focus strategy, the firm often has high customer loyalty, which prevents other firms from competing directly. There are some risks, such as imitating focus strategies and making changes to your target segments. In addition, it can be quite easy for a broad market value leader to adapt products directly to the competition. Finally, other focus areas can create sub-segments where they can better serve.
