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prohojiy [21]
3 years ago
11

A portfolio consists of 400 shares of stock and 200 calls on that stock. If the hedge ratio for the call is 0.6, what would be t

he dollar change in the value of the portfolio in response to a $1 decline in the stock price
Business
1 answer:
g100num [7]3 years ago
6 0

Answer: -$520

Explanation:

From the question, we are informed that a portfolio consists of 400 shares of stock and 200 calls on that stock and that the hedge ratio for the call is 0.6.

The dollar change in the value of the portfolio in response to a $1 decline in the stock price will then be:

= -$400 + [-$200(0.6)]

= -$400 - $120

= -$520.

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Afina-wow [57]

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Hence it can be said that

The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.




3 0
3 years ago
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yaroslaw [1]

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(b) Consumers preferences

(c) Population

(d) Weather conditions

(e) Advertising

In the question above, the use of a popular actor as the spokesperson of the product is a form of advertising that is intended to improve upon the perception of the commodity and hence encourage consumers to buy more of it. If the popular personality endorses a product, there is an almost one hundred percent likelihood that consumers would see the product as a preferred choice and this would cause the demand to go up or increase.

An increase in the market demand would be signified by the outward shift of the demand curve to the right from D to D2. Since the x-axis shows the quantity demanded increasing towards the right hand side, then an increase in market demand would be reflected by a shift of the demand curve to the right.

As a result of that, the price would now move from P to P2 which shows an increase in equilibrium price. Also the quantity demanded would move from Q to Q2 which also indicates an increase in demand.

6 0
3 years ago
an accounting firm collected cash on account. as a result of this​ transaction, total​ assets, liabilities, and equity are all u
musickatia [10]

TRUE, an accounting firm collected cash on account. as a result of this​ transaction, total​ assets, liabilities, and equity are all unchanged.

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A firm can be a company. B. A consumer goods store that offers physical products. It can also represent a service provider such as a hairdresser. The term company can refer to any for-profit business, but it is often used to describe businesses in specific industries such as law or accounting.

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Learn more about firm here:brainly.com/question/25491204
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6 0
2 years ago
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Darya [45]

Answer:

He should ask nieghbors to stop

Explanation:

Because asking nice is not a bad reason

4 0
3 years ago
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