Answer:
- 0.30
Explanation:
Given the following :
Hedge ratio of an at-the-money call option on IBM = 0.35
Hedge ratio of an at-the-money put option = - 0.65
Hedge ratio of an at-the-money straddle =?
Hedge ratio of an at-the-money straddle is given by :
(Hedge ratio of an at-the-money call option + Hedge ratio of an at-the-money put option)
Hedge ratio of an at-the-money straddle :
(0.35 + (-0.65))
= (0.35 - 0.65)
= - 0.30
Answer:
Answer C
Explanation:
If one of the variables is measured on dichotomous nominal scale, such as gender and other is measured on interval or ratio scale, than we use point biserial correlation coefficient. It will measure our initial hypothesis that there is a connection between the time spent on the phone, talking to your mother with gender. Later, if we would want to conclude how strong is this connection, we would use regression analysis.
Answer:
The correct answer is letter "D": accept deposits and make loans.
Explanation:
Commercial banks are the most common financial institutions there are allowing people have access to<em> deposits, loans, Certificate of Deposits (CDs), mortgages, credit cards, </em>and <em>mutual funds </em>among a wide variety of investment and credit instruments.
At a lower level, savings and loan associations and credit unions offer deposits and loans but the first ones share the money pooled among its members who share profits and credit unions are non-profit entities mainly formed by employees of the same organization.
Answer:
Given that Honduras is a small economy in Central America, and it keeps a fixed exchange rate with the US, and capital is perfectly mobile, but interest rates are three percent in the US and six percent in Honduras, the explanation of the difference in these interest rates are as follows:
Honduras has a higher interest rate, meaning that its sovereign bonds pay higher values than the American ones, as well as its banks also pay higher interests on their investments compared to American banks.
This is so for a double reason: on the one hand, because the Honduran economy is less reliable than the American economy, which is larger and therefore more solvent and capable of overcoming eventual crises, with which the risk of default is less.
On the other hand, the Honduran economy is more dependent on foreign investment, so it must offer higher interest rates to attract such investments.
Answer:
The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:
Debit Cash $162,000
Credit Accounts Receivable $162,000
The company did not record revenue because they did not sell the harvester. This was only the advance payment.
