Answer:
1) $9615.38
2)$9245.56
3) b is the correct option.
Explanation:
See the attached pictures for detailed answer.
Answer:
The correct answer is letter "B": The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction.
Explanation:
A naked call is a type of strategy options traders use when writing a call option without owning the underlying assets. For this to be possible, the trader must sign an options agreement and the Registered Options Principal (ROP) must approve the account so the trader can write naked options.
Before proceeding the "<em>Special Statement for Uncovered Options Writers</em>" must be provided.
Answer and Explanation:
a. The computation of price (expressed as a percentage of the face value) is shown below:-
Price = Face value ÷ (1 + Yield to maturity)^Number of the compounding period
= $1,000 ÷ (1 + 0.0323)^1
= $1,000 ÷ 1.0323
= $968.71
Price expected as a percentage to a face value = Price ÷ Face value × 100
= $968.71 ÷ $1,000 × 100
= 96.87%
b. The computation of credit spread of AAA-rated corporate bonds is shown below:-
Credit spread = Yield of AAA-rated corporate bond - Yield of treasury bond
= 3.23% - 3.15%
= 0.08%
c. The computation of credit spread on B-rated corporate bonds is shown below:-
Credit spread = Yield of B-rated corporate bond - Yeld of treasury bond
= 4.94% - 3.15%
= 1.79%
d. The credit rating for a bond changes with its respective credit risk change. That implies the bond 's rating would be lower the lower risk, and likewise.
The investor is demanding higher returns on risky bonds for additional risk-taking. Hence the credit spread is widening as the rating of bonds falls with an increase in the risk.
Under Price discrimination, an organization compares a few dimensions of its performance to that of another company, be it a competitor or in a totally distinctive industry.
Charge discrimination is a promoting method that fees clients one-of-a-kind charges for the same products or services based on what the seller thinks they can get the patron to comply with. In natural price discrimination, the vendor fees every customer the most fee they'll pay.
Charge discrimination refers to charging distinct clients special costs for the same true carrier. The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act outlaw price discrimination while the intent of that discrimination is to harm competitors.
Price discrimination in a monopoly is a practice of charging extraordinary costs for an equal product. Monopolies generally have extra control over providers than ordinary sellers, which means that they can notably impact the providers' promoting prices.
Learn more about Price discrimination here: brainly.com/question/23342760
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<u>Answer:</u>
<u>To determine proper allocation of resources since the business is relatively new.</u>
<u>Explanation:</u>
Remember, by using the <em>monthly</em> forcasting method in the first year of operations, it allows for total monthly expenses to be weighed against the total monthly revenue.
However, after gathering some experience from the first year's operations, using the <em>quarterly</em> method would allow for easy comparism of the performance of preceding years. ,
