Answer:
The amount of maximum net loss is $100
Explanation:
The butterfly spread comprise of buying 100 options with the strike price of $60 and $70 and the selling 200 options with the strike price of $65.
The maximum loss is when the strike price is less than $60 or be greater than $70. The aggregate payoffs from the options will amount to $0.
The cost of setting up the butterfly spread is:
= 11 × 100 + 18 × 100 - 14 × 200
= $100
Therefore,the net loss will be $100
Answer:
The correct answer is the option A: cost-focus.
Explanation:
To begin with, a <em>cost-focus strategy</em> is the name given to a type of strategy defined by Michael Porter in competitive advantage in order to establish a strategy whose main purpose is to focus on a low price regarding the prices of the competitors in a narrow market. Therefore that in this case Ski Safety is pursuing a cost-focus strategy because the company is looking forward to compete in a narrow market thanks to a low price.
Answer: B) balances of the partners' capital accounts.
Explanation:
Final cash distributions should be made proportionally to partners based on what they have in their Capital Accounts.
The balance in the Capital accounts of Partners shows the level of contribution that each partner has made to the business as well as their ownership proportion. When cash is to be distributed finally, it should therefore be based on the proportion of these Capital account balances to reflect the contribution and ownership.
Answer:
C. 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range. 2. Constant variance of residuals for all values of the independent variable. 3. Independence of residuals. 4. Normal distribution of residuals.
Explanation:
The four keys assumptions that are examined in the case of simple regression with respect to the specification analysis is given below:
1. There should be relationship between the dependent and independent variable and that should be linear and do not cross the relevant range
2, The residual variances of the independent variable would remain the same
3. Residual independence
4. Residual normal distribution
These four should be considered
Hence, the option c is correct
Answer:
What is the term used to describe product attributes that attract certain customers and can be used to form the competitive position of a firm?
Competitive dimensions.
Explanation:
In the business world, there are companies that sell products that are used for the same things. The companies in this types of environments are in competition with each other since they are all fighting over the same resource which is market share. A bigger market share usually translates to more customers and more sales. Bigger sales reflects to a bigger profit margin. For a company to have a bigger market share, there are a number of things that they can do to form the competitive position of their firm. They can do this by using product attributes that attract certain customers, a situation termed competitive dimensions.
The following competitive dimensions can be considered, namely;
1. Quality: companies can focus on the quality of their product by improving the quality of the features above the competition. In this way some customers might consider opting for that product because of its perceived quality. The major features of quality are: reliability, performance, serviceability and value for money.
2. Time: the following form the major components of time, namely; delivery time, manufacturing lead-time and frequency of delivery.
3. Price and cost: these include selling price and the service costs.
