Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year:

you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering

timofeeve [1]

Answer: D. I, II, and III

Explanation:

If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.

You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.

Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.

8 0

3 years ago

Which is an example of an economic factor that affects the business environment

lidiya [134]

Here are a couple of things hope they help

1.) Interest rates
2.) Taxes Inflation
3.) Currency
4.) exchange rates
5.) Consumer discretionary income
6.) Savings rates
7.) Consumer confidence levels
8.) Unemployment rate
9.) Recession
10.) Depression

5 0

3 years ago

Changes in stockholders' equity Listed are the equity sections of balance sheets for years 2014 and 2015 as reported by Mountain

svet-max [94.6K]

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

a. The net income is

= $1,500,000 - $800,000 + $210,000

= $910,000

b. The number of New Share issued is

= 1,600,000 - 480,000

= 1,120,000

c. The price of the new stock per share sold is

Par Value 1,120,000

Add: Paid In excess Of par (4,100,000 - 520,000) 3,580,000

Net Proceeds from issuance of shares 4,700,000

Number of New Share Issued 1,120,000

Now

The Average price per share of the new stock sold is

= 4,700,000 ÷ 1,120,000

= $4.20

d. The original price of the share is

The original issuance price is

= (Paid-in-capital account + common stock account) ÷ original shares

= (520,000 + 480,000) ÷ 480,000

= $2.08

Therefore we can conclude that

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

Learn more: brainly.com/question/13931207

5 0

3 years ago

Which best describes the similarity and differences between the Construction pathway and the Maintenance/Operations pathway?

Naddika [18.5K]

Answer:

into how many geographical region Nepal has divided? describe them in a few line

8 0

3 years ago

In a job order costing system, a credit to Finished Goods Inventory will be accompanied by a debit to A. WorkminusinminusProces

goldenfox [79]

Answer:

A. Work-in-Process Inventory

Explanation:

What a credit to finished goods inventory actually means is that there was an increase in the number of finished goods. If finished goods increased, it means that the number of goods still being worked on (Work-in-process inventory) has decreased (debit). Thus, this transaction must be accompanied by a debit to Work-in-Process Inventory.

4 0

3 years ago