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ladessa [460]
3 years ago
13

You have a portfolio with long positions in both puts and calls. The volatility in the market rises. A. Your portfolio gains in

value. B. Your portfolio is now riskier and is therefore worth less than before. C. Your portfolio gains on the calls and loses on the puts. D. Your portfolio gains on the puts and loses on the calls.
Business
1 answer:
Igoryamba3 years ago
7 0

Answer:

The correct answer is B) Your portfolio is now riskier and is therefore worth less than before

Explanation:

In the parlance of Investment, a portfolio simply refers to a collection of investments. They may include but are not limited to:

  • Stocks
  • Bonds
  • Commodities
  • Closed-end funds etc.

An investment with long positions is one that is purchased with an expectation that it will appreciate or rise in value. Call and Put options refer to the right (not a mandatory responsibility) for an investor to buy and sell an investment. Where Call is buying and Put is selling.

A volatile market is in most cases synonymous with a riskier market. In high-risk markets, the value of investments tends towards the negative. The opposite is true.

When there is a disequilibrium of trade orders (such as all Calls and no Puts), it can quickly lead to a volatile market. this condition can be triggered by

  • economic information released from very credible sources
  • news about a company whose stocks are highly traded
  • a recommendation from a highly reputable investment analyst etc.

Cheers

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NeTakaya

If the graph represented a perfectly competitive industry, then the quantity of output produced would be 160 units.

<h3 /><h3>What is the quantity produced in a perfectly competitive industry?</h3>

Companies in any industry would try to maximize their profit by producing at a point where marginal revenue is the same as marginal cost.

This is the same in perfectly competitive industries like the ones shown in the graph.

The difference is that, in a perfect competition market, the demand curve is the same as the price which is also the same as the marginal revenue curve.

This means that the point of maximizing profit in a perfectly competitive industry is:

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The point where the Marginal revenue curve intersects with the Marginal cost curve is 160 units as the marginal revenue curve is the demand curve.

In conclusion, the output would be 160 units.

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The nurse is assessing a patient's functional ability. which activities most closely match the definition of functional ability?
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3 years ago
Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Un
charle [14.2K]

Answer:

Equivalent Units of Production :

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(2) Conversion Costs = 284400

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Explanation:

The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.

<em>Step 1 : Determine Units Completed and Transferred to Finished Goods</em>

<em>Units in Process = Units Output</em>

Units In Process                                298000

Less Closing Work In Process            34000  

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<em>Step 1 : Determine Equivalent Units for each input component</em>

Materials:

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Total = 298000

Conversion Costs:

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