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sveticcg [70]
1 year ago
15

Which of the following does not describe​ derivatives? A. These financial instruments are often used to speculate. B. Insurance

is required when purchasing derivative securities. C. They are assets that derive their economic value from an underlying​ asset, such as a stock or bond. D. These financial instruments are often used to hedge against risk
Business
1 answer:
Elden [556K]1 year ago
7 0

Answer:

B. Insurance is required when purchasing derivative securities

Explanation:

  • A derivative is a contract that is drives its values to form the underlying entity and can be interest rates and assets and includes the insurance against the price movement such as hedging.
  • <u>Some of the common derivatives are the futures, swaps and the options and forwards. </u>
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Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes. The line named "Pimp Y
patriot [66]

Answer:

The correct answer is letter "A": opinion leader.

Explanation:

An opinion leader is a person who, due to the expert status obtained and because that individual represents a trusted source, has a major influence within a given group. Opinion leaders tend to be charismatic, well-known, and serve as a community leader. Moreover, opinion leaders must have an in-depth knowledge of the issue involving the group.

8 0
2 years ago
Suppose the daily demand for soda is given by P = 4 – (2/3)Q and the daily supply of soda is given by P = 1 + (1/3)Q, where P is
Pavel [41]

Answer:

Qe 2

Pe 2

Demand price elasticity -0.60

Supplu price elasticity 3

i. It will decrease

As the demand as a more than proportionate price elasticity will overreact to the input price and their subsequent price increase with a reduce in consumption.

Explanation:

We equalize both to get the equilibrium quantity (Qe)

4 - 2/3Qe = 1 + 1/3Qe

Qe(2/3 + 1/3)  = 4 - 1

Qe = 3

Then we solve for equilibrium price (Pe)

Pe =  4 - 2/3 x 3 = 4 - 2 = 2

Pe = 1 + 1/3 x 3 = 1 + 1 = 2

Price elasticity of demand at equilibrium:

variation in quantity / variation in price

we solve for Q when P = 3 and compare the variation

(1.33-3) / (3 - 2) = -1.66/1  = -1.66

Price elasticity of supply at equilibrium:  ( 6 - 3) / (3 - 2) = 3 / 1 = 3

7 0
1 year ago
Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was
patriot [66]

Answer:

Time Interest Earned Ratio (TIE Ratio) = 5.8 times

Explanation:

Time Interest Earned Ratio (TIE Ratio) = Income Before Interest and Tax/ Interest Expense

Details                                                    Amount ($)

Sales                                                      435,000

Less: Operating Cost                            362,500

Income Before Interest and Tax (x)     72,500

Interest (y)                                              12,500

TIE Ratio (x/y)                                         5.8 times

6 0
1 year ago
When searching for a romantic partner on-line, jillian will only review profiles of men from a specific country. in this example
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4 0
1 year ago
Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total
romanna [79]

Answer:

$30,000 excess

Explanation:

Beginning cash balance + Budgeted receipts - Budgeted disbursements + excess/deficiency = desired ending balance

$18,000 + $175,000 - $174,000 + $X = $49,000

$19,000 + $X                                       = $49,000

$X                                                         = $49,000 - $19,000

$X                                                         = $30,000

5 0
1 year ago
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