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What is common stock ? in your own words.

vodomira [7]

Common stock our shares of ownership in a corporation that a Ford their holders voting rights.

6 0

3 years ago

The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost fo

iren2701 [21]

Solution :

a. Ink used for screen printing --- Variable

b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used --- Mixed

c. Thread --- Variable

d. Electricity costs of $0.038 per kilowatt-hour --- Variable

e. Janitorial costs of $4,000 per month ---- Fixed

f. Advertising costs of $12,000 per month ---- FIXED

g. Accounting salaries --- FIXED

h. Color dyes for producing different colors of T-shirts ----- Variable

i. Salary of the production supervisor ---- FIXED

j. Straight-line depreciation on sewing machines ----- Fixed

k. Salaries of internal pattern designers ----- FIXED

l. Hourly wages of sewing machine operators ------ Variable

m. Property taxes on factory, building, and equipment ----- Fixed

n. Cotton and polyester cloth ---- VARIABLE

o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) ---- Mixed

6 0

3 years ago

An investor believes that there will be a big jump in a stock price, but is uncertain as to the direction. Identify six differen

Korvikt [17]

Answer:

Consider the following explanation.

Explanation:

The six different strategies (spreads or combinations) the investor can follow:

1)short Butterfly spread: it’s a spread with selling one call option with the lowest strike price(XL),purchasing two call options with the medium strike price(XM) and selling one call option with the highest strike price (XH) , XL<XM<XH. The strike price (XM) is generally chosen such that its equal to the stock price and options are of same maturity. The strategy shall generate the net income from the selling of calls when the stock price deviated from the strike price XM due to the high volatility. A high jump either way guarantees a net income.

2) The Straddle combination with long one put and long 1 call with the same strike price X and maturity. Its payoff depends on the deviation of the strike price if the big jump either way is expected then either the put or the call expires in the money so that the moneyness(payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call.

3)In the Strangle combination there is one long call with strike price (Xc) and one long put with strike price Xp,this combination is cheaper to generate due to purchase of OTM(out of the money) options. If the big jump either way is expected then either the put or the call expires in the money so that the moneyness (payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call. It’s easier to cover all the lesser premiums paid for the call and put and generate profits with a big move.

4) The Strip combination consists of 1 call+2 put with same exercise price and maturity. If the big jump either way is expected then either the two put or the call expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 puts is much more when the stock moves downwards as compared to when the stock moves upwards. Investor is sure of the uncertain directional big jump but thinks that the probability of downward move is greater than the upward move.

5) The Strap combination consists of 2 calls+1 put with same exercise price and maturity. If the big jump either way is expected then either the 1 put or the 2 calls expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 calls is much more when the stock moves upwards as compared to when the stock moves downwards. Investor is sure of the uncertain directional big jump but thinks that the probability of upward move is greater than the downward move.

6) Short Calendar spread: short shorter term call and at the same time short longer term call therefore the income is generated by the big move from the premiums of the calls and differences in the maturity.

3 0

4 years ago

According to california real estate law, how often must a broker balance his or her trust accounts?

just olya [345]

According to california real estate law, how often must a broker balance his or her trust accounts is Trust accounts must always be a balance equal to the security deposits total.

<h3>What is California real estate law?</h3>

California real estate law can be defined as the regulation or rules and law that real estate owner are expected to abide by or follow.

The aim and purpose of California real estate law is to protect the general public from real estate owner are not trustworthy and lack integrity.

Hence, According to California real estate law, how often must a broker balance his or her trust accounts is: The Trust accounts must always be a balance equal to the security deposits total.

Learn more about California real estate law here:brainly.com/question/15310355

brainly.com/question/16945831

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8 0

2 years ago

If you are planning to carry a large balance on your credit card, which of the following credit card features should you look fo

balu736 [363]

Big intrrest most likely

5 0

3 years ago