Answer:
You could protect yourself from the possibility of significant price decline by buying put options for your stock. A put option gives the buyer of the put option the right to sell the stock at a particular price till a particular date. So for example you could buy a put option which gives you the right to sell your stock for $65 1 year from now. Assume you buy the put option for $1 and the price of the stock goes back to $50 in a year. Because you have the put option you can sell the stock for $65 because of the put option, and lose only $1 instead of $15. Where as if the stock price increases to $75, then you can sell the stock at $75, and you will make a profit of $24 (75-50-1)
Explanation:
Answer:
Inelastic
Explanation:
Price elasticity of demand refers to degree of responsiveness of change in demand with due to the change in price.
When a small change in price is accompanied by a higher change in the quantity demanded, this indicates the demand being elastic.
On the other hand, when a substantial change in price results in less than proportionate change in the quantity demanded, it indicates that demand is inelastic.
Price elasticity of demand is mathematically represented as:
wherein, 
= Price elasticity of demand
dQ= change in quantity demanded i.e 
dP = Change in price i.e 
p = original price
q = original quantity
In the given case, the manager thinks, when price is reduced by 50 cents, the sales quantity will rise by 1 unit, but the total revenue, which is the product of price and quantity demanded, will fall. This indicates, the demand was perceived as inelastic.
This represents the case wherein, with fall in prices, the total revenue also falls i.e inelastic demand.
Answer: $50,000
Explanation:
From the question, we are informed that a machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.
The amount that should be reported as a source of cash under cash flows from investing activities will be $50,000. It should be noted that only cash effects of transaction has to be added to the cash flow statement.
The level of GDP is the main determinant of the amount of money demanded for transactions.
The income (Y), the expected inflation (π), and the interest price (I) are 3 important primary determinants in a popular money call for characteristic. In principle, cash call for is an incremental characteristic of real profits as normal price range circumstance dictates, and it is the maximum critical variable in money call for characteristic.
In summary, the demand for cash depends on the charge degree, the interest fee, and the actual gross home product. these 3 elements combine to determine the fraction of human beings' wealth that they maintain as coins and checking for shopping and the fraction that they preserve as interest-bearing belongings.
For a given amount of wealth, the solution to this query will depend upon the relative costs and blessings of retaining money versus other property. The demand for money is the connection between the amount of money human beings need to keep and the elements that determine that quantity.
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Answer: Option (D) is correct.
Explanation:
A macro factor underlying the trend toward greater globalization is the decline in trade barriers since the end of world war II. One stage toward the pattern of globalization is that expelling the hindrances of exchanging merchandise and different things since the world war II for example since 1950s. Additionally another factor for globalization is changes in innovation.
