Answer:
“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.
Explanation:
An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.
If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.
Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.
Answer:
Fractional Reserves
Explanation:
Banks are required to hold money to lend out. If you deposit $100 into your account that is $100 for the bank to lend that money out to ones who need it.
Answer:
Inductive reasoning
Explanation:
This type of reasoning is considering generalization that is formed and based on some previous experiences and with that previous experiences the observation that is made is forming an inductive reasoning.
In this case, the person met many of them who says that their favorite pizza is pepperoni and then every time that someone say that they love pizza, this person will think of pepperoni pizza because of the previous experiences that caused those observations.
Answer:
Current liabilities: Accounts payable$130,000
Sales tax payable 8,800
Warranty Payable 4,000
Interest payable 667
Notes payable 50,000
Total current liabilities$193,467
Explanation:
Answer:
c. $150.
Explanation:
the extra amount of hours Maurice can work taking a flight will be of 5 hours
(8 hours taking a plane against 3 hours if driving)
As the income per hour is 30 dollar it can generate;
5 hours x $30 per hour = $150
Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150
