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Ber [7]
2 years ago
6

A protective put strategy is Multiple Choice a long call plus a short put on the same underlying asset. None of the options are

correct. a long put plus a long call on the same underlying asset. a long put plus a long position in the underlying asset. a long put plus a short call on the same underlying asset.
Business
1 answer:
luda_lava [24]2 years ago
6 0

Answer:

a long put plus a long position in the underlying asset.

Explanation:

A protective put strategy is a long put plus a long position in the underlying asset. It is a risk management strategy that makes use of options contracts which are employed by investors to protect or guard their investments against a potential loss in stocks or assets such as commodities, indexes and currencies. The protective put strategy helps to mitigate or limit risk associated with buying stocks for the first time.

Generally, the value of the underlying asset is anticipated to decrease by the buyers while the value of the underlying asset is anticipated by sellers of call options to also decrease.

Hence, considering the prospective option holder, when the exercise price is higher, it means that the call options are worth less. Also, when the exercise price is higher, it means that the put options are worth more.

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Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 t
Soloha48 [4]

Answer: price competition

Explanation:

The type of competition would Funke and Dumphy likely engage in after the decrease in demand is price competition.

Price competition simply means when the companies in a particular industry lower their prices afsubst the prices of identical products in order to boost demand and sales.

Since there's a reduction in demand, Dumphy and Funke will engage in price competition to boost sales.

8 0
2 years ago
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay
viva [34]

Answer:

the profits of her firm might increase.

Explanation:

Efficient wage theory postulates that productivity will increase as a result of increased wages. This is because the employee is more motivated to work when they are earning higher wages.

Efficiency wages are higher than the equillibrum wage paid in the industry.

Managers favour efficient wage payment because it reduces staff turnover and attracts more productive employees to the company.

On the other hand the manager can also cut down salary and employ more workers to perform the task.

8 0
2 years ago
Garcon Inc. manufactures electronic products, with two operating divisions, Consumer and Commercial. Condensed divisional income
leonid [27]

Answer:

1.Since there is spare capacity in the consumer division, the acceptable transfer prices are variable cost per unit - market price per unit

i.e. $104-$150

The transfer price should be set in between the two. However, $150 is an appropriate price

2. Income will increase as follows:

Consumer Division = (115-104)*2880 = $31,680    

Commercial Division = (150-115)*2880 = $100,800    

Company = $132,480

3) check the attached file

4.Income will increase as follows:    

Consumer Division = (126-104)*2880 = $63,360    

Commercial Division = (150-126)*2880 = $69,120    

Company = $132,480

Explanation:

check attached files for explanation well detailed.

7 0
2 years ago
Rugrat Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $190,000
inessss [21]

Answer:

$140,000

Explanation:

The  difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:

Variable costing:

Fixed manufacturing overhead in production $750,000

Absorption costing:

The Fixed cost would be

= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory

= $190,000 + $750,000 - $50,000

= $890,000

So, the difference would be

= $890,000 - $750,000

= $140,000

8 0
2 years ago
Bethany works for an international accounting firm noted for its superior quality of work. Employees check and double-check thei
Masja [62]

The culture of this firm emphasises <u>Attention to Detail</u>

<u>Explanation:</u>

Attention to detail is a significant resume ability to incorporate. The capacity to control little bits of information with precision and centre is a pivotal expertise in a wide scope of employment fields.

You have that aptitude, so you gladly express extraordinary scrupulousness as one of the advantages on your resume.

Achieves careful quality and exactness when achieving an assignment through worry for every one of the territories in question. Conduct Indicators - Provides precise, reliable numbers on all desk work.

8 0
2 years ago
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