It is given that both a one-year put option and call option on the same underlying stock have a strike price of Y and a oneyear zero coupon bond with a face value of Y. To replicate the long put position payoff with the same underlying stock, an investor needs to Select one: Long stock, long call and long bond Short stock, long call and long bond Long stock, long call and short bond Long stock, short call and long bond Short stock, short call and short bond
Answers
Short stock, long call, and long bond .
To replicate the long put position payoff, an investor needs to create a synthetic long put position.
This can be achieved by combining a short stock position, a long call option, and a long bond.
1. Short stock: By taking a short position in the underlying stock, the investor benefits from a decline in the stock's price. This will provide a payoff similar to owning a put option.
2. Long call option: The long call option gives the investor the right to buy the underlying stock at the strike price. If the stock price decreases, the call option will not be exercised, and the investor can let it expire. However, if the stock price increases, the call option can be exercised, allowing the investor to buy the stock at the strike price and limit potential losses.
3. Long bond: The long bond, with a face value equal to the strike price, provides the investor with additional funds to cover any potential losses from the short stock position. It acts as a form of collateral, reducing the risk associated with the short position.
By combining these positions, the investor can replicate the payoff of a long put option, which provides downside protection and potential profit in the event of a decline in the stock's price.
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Related Questions
47. Indian economy is a mixed economy as it consists of both privately owned and
government owned business enterprises. Therefore, we can classify the Indian economy
into two sectors, viz, Private Sector and Public Sector. In a capitalistic economy, the
private sector is dominating, while in a socialistic economy, the public sector is
dominating. In a mixed economy, both the private sector and public sector go hand in
hand.
. In the light of the above paragraph explain Indian economy?
Answers
Yes, the Indian economy is a mixed economy which consists of two sectors viz, Private Sector and Public Sector.
What is the Indian economy?The economy of India is a mixed middle-income developing social market economy. It is the world's fifth-largest economy by nominal GDP and third-largest economy by purchasing power parity.The essential characteristics of developing economies are overpopulation, extreme poverty or below the poverty line, poor infrastructure, agriculture-based economies, slow pace of capital development, and low per capita income.The Indian economy is characterized by a low real per capita income rate, a high population growth rate, and a high degree of dependence on the primary industry. Covid 19 has had a negative impact on the Indian economy. The Covid pandemic has led to industry shutdowns and subsequent job losses.An economy is a system of interconnected production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole meet the needs of the people who live and work there.to know more about the Indian economy refer to
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How does marketing help your product or service
Answers
Answer:
Marketing informs your customers about the products or services you're offering them. Through marketing, the customers get to know about the value of the products, their usage and additional info that might be helpful to the customers. It creates brand awareness and makes the business stand out.
Explanation:
Accounts payable is an example of a long-term liability.
a) true
b) false
Answers
False Accounts payable is an example of a long-term liability.
Accounts payable is not an example of a long-term liability. Instead, it is a short-term liability. Short-term liabilities are obligations that are due within a year or within the operating cycle of a business, whichever is longer.
Accounts payable refers to the money owed by a business to its suppliers for goods or services received but not yet paid for. It is typically expected to be paid off within a short period of time, such as 30 to 90 days. Long-term liabilities, on the other hand, are obligations that are due beyond a year or the operating cycle. Examples of long-term liabilities include long-term loans, bonds payable, and deferred income taxes.
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Pooja, Cathy, Huzefa, and Angela have come together to form a group based on their common interest of dining at new restaurants and writing about them in their blog. What kind of a group is this?
Pooja, Cathy, Huzefa, and Angela have come together to form a(n) _____
group.
Answers
Pooja, Cathy, Huzefa, and Angela have come together to form a(n) interest group.
What is an interest group?
A group that uses a variety of advocacy techniques to sway public opinion and/or policy is known as an interest group or an advocacy group. Another term for an interest group is: educated society. Group of people with a shared area of expertise or special interest. college community.
Interest groups are created to advance the causes that matter to its members. Influencing public policy is their main concern. Interest groups are also referred to as "pressure" or "lobby" groups because one of their main responsibilities is to apply pressure to political decision-makers.
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i will give brainiest if right please answer, Parker wants to develop new food sources for less-developed countries. He was raised on a farm, but doesn't plan to be a farmer. What kinds of careers should he consider?
Answers
When something is grown and harvested in the same country it is distributed in, it can be considered what?
capital
international
duties
domestic
Answers
Answer:
domestic
Explanation:
In business, domestic refers to the home country of the producer or consumer. The domestic market is the market within the borders of the seller's country. Domestic contrasts with international, which refers to beyond the borders of a country.
Products that are produced and distributed within the country are domestic products. They are often referred to as local products. Domestic goods become exports if sold outside the borders of their country of origin.
Segment materiality does not affect any of the four risks to planned audit evidence. True or False
Answers
It is false that segment importance does not affect any of the four risks of planned audit evidence.
There is an inverse relationship between materiality and the level of audit risk. In other words, the higher the level of importance, the lower the audit risk, and vice versa. In determining the nature, timing and extent of audit procedures, auditors consider the inverse relationship between materiality and audit risk.
Materiality is determined by management's risk appetite and tolerance and considers both quantitative and qualitative factors such as perceived reputational risk and regulatory compliance.
Planned discovery risk is a measure of the risk that a segment's audit evidence will not detect a misstatement when it exists beyond an acceptable level. Audit risk is a function of the risk of material misstatement and the risk of detection. Audit risk therefore consists of two components: risk of material misstatement and risk of discovery.
Materiality depends on the scale and nature of the omission or misrepresentation, evaluated in the context of the circumstances. Item size or type, or a combination of both, can be the determining factor.
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Which TCF checking account fee is the most expensive?
Answers
Answer:
Explanation: it’s o stop payment fee
A mail-order firm processes 4,400 checks per month. Of these, 70% are for $34 and 30% are for $66. The $34 checks are delayed three days on average; the $66 checks are delayed four days on average. Assume 30 days in a month.
a-1. What is the average daily collection float? (Do not round intermediate calculations. )
a-2. How do you interpret your answer? (Do not round intermediate calculations. )
b-1. What is the weighted average delay? (Do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )
b-2. Calculate the average daily float. (Do not round intermediate calculations. )
c. How much should the firm be willing to pay to eliminate the float? (Do not round intermediate calculations. )
d. If the interest rate is 6% per year, calculate the daily cost of the float. (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )
e. How much should the firm be willing to pay to reduce the weighted average float to 1. 5 days? (Do not round intermediate calculations. )
Answers
a-1) The average daily collection float is $22,088
a-2) There is $22,080 that is uncollected and not available to the firm.
b-1) The weighted average delay is $191,840
b-2) The average daily float is $22,061.60
c) The firm be willing to pay to eliminate the float is $22,061.60
d)The average daily interest 3.46
e) New average daily float is: $9,591.99
Cash on collection:Cash on collection is said to be a function that explains the process whereby a company recovers cash from several businesses to whom it has previously issued a bill. These bills are issued with the duration of payment.
a-1 Calculating the average daily collection float :
Average daily collection float = (4,400× 70% × $34 × 3) + (4,400 × 30% × $66 × 4 ) / 30 days
= $22,088
a-2) On average, there is $22,080 that is uncollected and not available to the firm.
b-1)Calculating the weighted average delay
Total collection= 4400 × 70% × $34 + 4400 × 30% × $66
= $191,840
b-2) Calculating the average daily float
Average daily float = Weighted average delay × (Total collection/ 30 days)
= 3.45 × ($191,840/ 30 days)
= $22,061.60
c) $22,061.60 is the firm be willing to pay to eliminate the float
d) Calculating average daily interest
(1 + Interest rate) = \((1+R)^3^6^5\)
(1+ 0.06) = \((1+R)^3^6^5\)
R = 0.01596% per days
Daily cost of float = Average daily float × R
= $22,061.60 × 0.01596%
= 3.46
e) New average daily float = 1.5 days (Total collection/ 30 days)
= 1.5 days × ($191,840/30days)
= $9,591.99
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True or false: Studying business does NOT offerlany benefits for those who decide to work for a government agency or a nonprofit organization
Answers
The following question is : false
The given statement stating that "the study of business would not help in knowing about the advantages of Non-profit organizations or government agencies" would be considered:
b). False
'Non-profit Organizations' are characterized as the 'type of business organizations or set up that does not work with the aim of profit but for social welfare. Similarly, the sole motive of a government agency is also 'social welfare.' However, the workings of both the kinds of organizations(business and NPOs) are similar like the recruitment of staff or volunteers, ensuring productivity, putting the revenue back to the firm for progression of its operations, etc. Both of them have a goal of leaving the maximum impact on the people. Thus, the given statement is false as studying about business would give a very clear idea about the various processes of an organization.Learn more about 'Non-Profit Organization' here:
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a broker developed a website to advertise the broker's office with the brokerage's name, location, and phone number. what additional information does the broker need to include?
Answers
Since the broker already add the brokerage's name, location, and phone number on the website to advertise the broker's office; then no need for any additional disclosures. The correct answer is option D.
What is a broker?A broker is an individual or firm that acts as an intermediary between a buyer and a seller; or between an investor and a securities exchange, who buys and sells goods or assets for others. A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
There are 3 types of brokers, those are: Online brokers, a new form of digital investment which interacts with the customer on the internet; Discount brokers, a stockbroker who performs buy and sell orders at a reduced commission rate; and Full-service brokers.
Although part of your question is missing, you might be referring to this full question: A broker developed a website to advertise the broker's office with the brokerage's name, location, and phone number. What additional information does the broker need to include?
A. Name and address of the home office and the states in which the brokerage holds licenses
B. License number of the brokerage and list of current active licensees
C. Names of active licensees, addresses, and phone numbers
D. No need for any additional disclosures
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Intelligence incorporated produces 100 computer chips and sells them for $200 each to bell computers. Using the chips and other labor and materials, bell produces 100 personal computers. Bell sells the computers, bundled with software that bell licenses from macrosoft at $50 per computer, to pc charlie’s for $800 each. Pc charlie’s sells the computers to the public for $1,000 each. Calculate the total contribution to gdp using the value-added method.
Answers
The value added for each agent in the economy is as follows
Intelligence incorporated: 100 x 200 = 20,000
Bell: 800*100 - 20,000 - 50 x 100 = 55,000
PC Charlie's: 1000 x 100 - 800 x 100 = 20,000
GDP = 20,000 + 55,000 + 20,000 = $95,000
What is the value-added method?In business, the total value added is calculated by adding the unit value contributed for each sold unit of a good. The total value added is therefore equal to revenue less intermediate consumption.
Employee remuneration, which represents a return on labor, and earnings before taxes, which represents a return on capital, very closely match the total value produced.
For integrated organizations, value-added represents a higher percentage of sales; for less integrated companies, value-added represents a lower percentage of revenue.
The term "value-added" in economics, and more specifically macroeconomics, refers to the improvement in the product's value and the income of the persons who own the production-related variables.
Consequently, both labor and capital contribute to the value added by the nation.
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Some identity thieves may use your Social Security number to obtain government benefits,
OA True
OB, False
Answers
Answer:
True
Explanation:
Your social security number overall describes who you are and your citizenship. If someone could get a hold of your SSN, they could do an number of things that are far worse then mere identity theft. If given the chance, they could even file for unemployment or Social Security benefits. This means that by using your identity, they are illegally gaining funds through government benefits. This crime is known as fraud.
Please help me with this!!
A certain country has a balanced economy. This has led to more tax revenue for the government. What is MOST likely the fiscal policy stance that this government takes?
contractionary stance
economic stance
neutral stance
expansionary stance
Answers
Neutral stance is most likely the fiscal policy position that this government takes. As certain country has a balanced economy. This has led to more tax revenue for the government.
What is balanced economy?Balanced economy is defined as the long term economy that has a sustainable growth and development in every sector.
There are numerous features of a well-balanced economy. Low inflation aids to avert an unsustainable boom and bust cycle in the economy.
Thus, option C is correct.
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A. Stine Co. previously wrote off a $200 bad debt from Thorn Co. using the direct write-off method. On October 1, Stine unexpectedly receives a check in the amount of $200 from Thorn Co. The entry to record this receipt of $200 will include a: (Check all that apply.)
Answers
Answer:
Journal Entry
October 1
Dr. Account Receivables $200
Cr. Bad Debt $200
Dr. Cash / Bank $200
Cr. Account receivables $200
OR
Dr. Cash / Bank $200
Cr. Bad Debt $200
Explanation:
A receivable is written off when it is expected to be uncollectable. In this question, the Stine Co. previously wrote off and now the check from Stine is received. While writing off Thorn Co. removed the receivable value fom the accounting records. Now we need to adjust the value and record the transaction to make accounting records correct.
Enterprises that provide goods or services to, or receive them from my training institution or organization
Answers
Answer:
Enterprise is another word for a for-profit business or company, but it is most often associated with entrepreneurial ventures. People who have entrepreneurial success are often referred to as “enterprising.” There are many forms of legal enterprises, with the most common in the U.S.
is your last chance to make sure your document is ready to carry your message-and your reputation to the intended audience.
Answers
Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In choosing her optimal output, farmer Jones should:
Answers
Answer:
sell more
Explanation:
Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is leftover. Why is this not the best option for saving her money?
Answers
Answer:
spend money on bills first then food then save the leftover money for later
Which department is responsible for managing an organization's master budget? A. The operations department B. The purchasing department C. The accounting department D. The finance department
Answers
The department responsible for managing an organization's master budget is "C. The accounting department."
The accounting department is primarily responsible for managing an organization's master budget. The master budget is a comprehensive financial plan that incorporates all the individual budgets of various departments and functions within an organization.
The accounting department plays a central role in budgeting activities. They collect, analyze, and interpret financial data to develop the master budget. This department collaborates with other departments, such as operations, purchasing, and finance, to gather necessary information and input for budgeting purposes.
The accounting department oversees the process of budget preparation, ensuring that it aligns with the organization's strategic goals, financial objectives, and resource constraints. They compile and consolidate the individual budgets, such as sales, production, marketing, and administrative budgets, into a cohesive master budget.
Moreover, the accounting department is responsible for monitoring and controlling the budget throughout the fiscal period, comparing actual performance against budgeted amounts, and providing reports and analysis to management. They play a crucial role in financial planning, resource allocation, and decision-making based on the master budget.
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URGENT: Creating and using a checklist makes home maintenance and repair projects more _______. (10 letters)
Answers
Answer:
productive
Explanation:
Your company has sent you an email telling you your department must increase the daily output goal of 120 widgets per hour, to 126 widgets per hour. Everyone on your team recognizes more efficient production will lead to more profit for the company, and a higher chance for a raise for each of them. As usual, you will hold a brief meeting explaining the new directive and provide the deadline as to when this new daily production goal must be met with regularity. The meeting ends after a couple of clarifying questions and answers, and you and your employees get back to work on meeting the deadline for the new goal. What management theory best describes the management style of this company? What leadership style will you employ to get the required increase in production of widgets your company requested? Why is this leadership style the best fit for this scenario?
Answers
Answer:
Participative Leadership style.
Explanation:
Participative leadership, also known as democratic leadership, is one in which the leader has the central focus of employee engagement and participation in important company decisions. In this style of leadership, the manager has a crucial role of being the main motivator and advisor of the team, being solicitous to guide, coordinate and assist his subordinates in all their work demands, so that the goals and organizational goals are achieved.
This style of participatory leadership would be more appropriate for this scenario as there are deadlines for completing tasks, which requires a motivated and productive team, which is essential in participatory leadership.
The motivation of employees is achieved due to clear and guiding communication from the leader, which creates the perception of inclusion and appreciation of the employee, who feels an essential and important part of the organization.
A LED has a voltage drop of 1.6 V and requires 16 mA for full brightness. This LED with a current limiting resistor is connected to a 12 V voltage source. What should be the resistance of the current limiting resistor
Answers
The resistance of the current limiting resistor should be 650 ohms.
To calculate the resistance of the current limiting resistor, we need to use Ohm's law. Ohm's law states that voltage equals current multiplied by resistance (V = IR). We know that the voltage source is 12 V and the LED has a voltage drop of 1.6 V. Therefore, the voltage across the current limiting resistor is 12 V - 1.6 V = 10.4 V.
Next, we need to calculate the current that flows through the LED and the current limiting resistor. We know that the LED requires 16 mA for full brightness. So, the total current flowing through the circuit is 16 mA. We can use Ohm's law again to calculate the resistance of the current limiting resistor.
R = V/I
R = 10.4 V / 0.016 A
R = 650 ohms
Therefore, the resistance of the current limiting resistor should be 650 ohms. This will ensure that the LED operates at full brightness and is protected from excessive current flow.
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Karl values Word at $100 and Excel at $40, and Adam values Word at $20 and Excel at $90. How much more does the seller make if it bundles than if it sells the products individually
Answers
Both Karl and Adam would purchase the bundle for $110, generating combined revenues of $220. The seller makes $30 more if it bundles the products.
The seller can maximize profits by considering Karl and Adam's valuations of Word and Excel. If the seller sells the products individually, Karl would pay $100 for Word and $40 for Excel, totaling $140. Adam would pay $20 for Word and $90 for Excel, totaling $110. The combined revenue for individual sales would be $250 ($140 + $110).
If the seller decides to bundle Word and Excel, they must set a bundle price that both Karl and Adam would be willing to pay. The lowest price Karl values the bundle is $140, and the highest price Adam values the bundle is $110. Therefore, the seller can set a bundle price of $110 to maximize sales.
In this case, the seller makes $30 more if it bundles the products ($220 - $250 = -$30). The seller should sell the products individually to maximize revenue, as bundling would result in lower total earnings.
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Marginal revenue product is the: a. change in total output resulting from a unit change in the quantity of a variable input. b. price of the output multiplied by the total units of output produced. c. change in total cost resulting from a unit change in the quantity of a variable input. d. ratio of total revenue to the quantity of a variable input employed. e. change in total revenue resulting from a unit change in the quantity of a variable input.
Answers
Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged
Explanation:
which of the following is an advantage of the corporate form of organization? question 1 options: control of a corporation may be held by those with a minority of the investment. the cost of forming and maintaining a corporation is minimal. a corporation need not be qualified in all states where it is conducting local or intrastate business. license fees and franchise taxes are not assessed against corporations. corporate income is not subject to double taxation.
Answers
The advantage of the corporate form of organization is that a) control of a corporation may be held by those with a minority of the investment.
This means that a minority shareholder or group of shareholders can exercise significant control over the corporation, provided they own a sufficient number of shares. This is in contrast to other forms of organization where control is typically proportional to investment.
However, it is important to note that there are also disadvantages associated with the corporate form of organization, such as the potential for conflicts of interest between shareholders and management, and the complexity and expense of forming and maintaining a corporation.
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You borrow $50 for 1 year at 5% interest rate. What is the interest owed?
Answers
Answer:
i think it would be 100 dollars
Explanation:
you mulitpy original by 5 which comes out to 100
hurry !
Whom does the Government and Public Administration career cluster serve?
private citizens
army and navy
government employees and the military
national security and the foreign service
Answers
Private citizens do the Government and Public Administration career cluster serve. Hence, option A is correct.
What is Public Administration?In the field of public administration, leaders collaborate with localities to advance the welfare of the public and effect change for the better. Public administration specialists are equipped to run all levels of government and nonprofit organizations.
Public administrators plan, direct, and supervise the organizations that oversee and regulate local laws and legislation. As these organizations grow to satisfy society's demands while simultaneously serving the interests and needs of the general public, public administrators act as special consultants to them.
"Legislative activities, taxation, national security, public order and safety, immigration services, foreign affairs and international assistance, and the administration of government programs" are all considered to be "exclusively governmental in nature."
Thus, option A is correct.
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Number 2 please please help me
Answers
Answer: See explanation
Explanation:
a. Public sector simply means the sector of the economy that the government controls. Examples include the military, public education, law enforcement, etc
b. The secondary sector is the sector of the economy that is concerned with how raw materials would be processed to become finished goods. The industries in this sector include construction companies, car manufacturers, textile industries, etc.
c. The tertiary sector of the economy is the sector that is concerned with services. This sector is important because:
• it helps in the provision of basic services like health care delivery, education, etc.
• it also helps in the development of several sector in the economy such as communication, and transportation.
• it contributes a huge part to the gross domestic product of a country.
d. The reason why some ministers may want to privatize some business include
• when the resources are not being efficiently utilized and there's wastage of resources.
• to improve competition
• it also brings about increase in effectiveness and efficiency.
e. The public sector alwayw produces goods and services more efficiently than the private sector as the government always looks to tackle market failure. Apart from that, the government looks out for the welfare of the people in the society and it's main motive is not profit maximization like the private sector.
Which of the following are part of the Fed's effort to provide a safe, secure and efficient payment system? Select all that apply. A. Fedwire, which moves funds rapidly between banks B. clearning of credit card transactions C. placement into circulation of Federal Reserve Notes and coins D. printing currency and minting coins
Answers
A and B are part of the Fed's effort to provide a safe, secure and efficient payment system.
The Federal Reserve works to create a safe, reliable, and efficient payment system by ensuring that it operates seamlessly between financial institutions. This network connects banks and other financial institutions and enables them to move money between them, conduct transactions, and maintain balances.A and B are part of the Fed's effort to provide a safe, secure and efficient payment system. Fedwire, which moves funds rapidly between banks, and clearing of credit card transactions are the correct answers.The placement into circulation of Federal Reserve Notes and coins is the main responsibility of the Bureau of Engraving and Printing and the U.S. Mint. Finally, printing currency and minting coins is the responsibility of the Bureau of Engraving and Printing and the U.S. Mint.
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