The buyer of a put expects the price of the underlying stock to rise is a. true
<h3>
What does buying a put mean?</h3>
- Short selling and put options are fundamentally negative methods used to speculate on the underlying securities or index's possible decline.
- Short selling and buying put options are both bearish techniques that increase in profitability when the market falls.
- Short selling is selling a security that the seller does not own but borrows and then sells in the market, with the possibility for substantial losses if the market rises.
- Purchasing a put option grants the buyer the right to sell the underlying asset at the price specified in the option, with the maximum loss being the option premium paid.
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The difference between the lowest price (that
a firm would have been keen to accept) and the price it actually receives from
the sale of a product is called producer surplus.
<span>Producer Surplus is an economic
measurement. Total economic welfare is equal to the addition of consumer
surplus and producer surplus.</span>
The duration of Security P based on the info given will be 11 years.
<h3>How to calculate the time?</h3>
From the information given, Security P is a preferred stock and Security Z is a zero coupon bond that has 11 years remaining until maturity.
Therefore, the duration will be:
= (1 + y)/y
= (1 + 0.1)/0.1
= 1.1/0.1
= 11 years
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Answer:
High demand and little supply
Explanation:
There is a gap in the market which when filled by few companies means they aren't competing against many others and can charge higher prices
<span>This is known as a technological substitution. Simply put this means that consumers prefer one product over another. In this case, the innovation of flat paneled lightweight crisper monitors were obviously more preferred to the bulky, heavy and not as clear monitors of the past.</span>