Ernest has just been hired and has an aptitude score of 80. What level of productivity would you expect from ernest

"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

tia_tia [17]

Answer:

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

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 buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call to create the collar.

3 0

3 years ago

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the

Diano4ka-milaya [45]

Answer 45k ...

Explanation:

7 0

2 years ago

An accounting report that shows the changes in capital during the accounting period is a

never [62]

It is a statement of the owners equity. I hope this helps :)

8 0

2 years ago

Read 2 more answers

Which is a correct statement regarding sandwich prices, based on the histogram?

Fudgin [204]

Answer:

Which is a correct statement regarding sandwich prices, based on the histogram? The distribution of sandwich prices is skewed left.

i hope this helps<3 :)

4 0

2 years ago

1/1/2019 sally miller purchased $500 of merchandise on account; the cost of the item is $310

timofeeve [1]

Solution and Explanation:

date Particulars Debit Credit

1st january, 2019 Account receivable 500

Sales revenue 500

(To record sales on account)

Cost of goods sold 310

Merchandise inventory 310

(To record cost of goods sold)

31st january, 2019 Notes receivable 500

Accounts receivable 500

(To record notes receivable for the 60 days at the rate of 6 percent)

1st April, 2019 Allowances for Doubtfull accounts 500

Notes receivable 500

(In order to write off Sally Millers account, no interest revenue is to be recognised)

2nd May, 2019 Notes receivable 500

Allowances for doubtful debts 500

( in order to record re-instatement)

2nd May, 2019 Cash 507.50

Notes receivable 500

Interest revenue 7.5

( In order to record the payment received)

3 0

3 years ago