which financial statement would a potential creditor ask to review if it wants to determine whether a company might have the ability to pay?
Answers
A potential creditor would want to review a company's balance sheet in order to determine whether it has the ability to pay.
A balance sheet is a financial statement that provides an overview of a company's assets and liabilities. It shows how much money the company owes to creditors, as well as how much cash and other assets the company has to pay them.
The creditor will look at the company's assets and liabilities to determine if it has sufficient assets to cover its debts. The creditor will also want to review the company's income statement to ensure that it has enough revenue to cover its expenses and pay its debts.
The creditor will also want to review the company's cash flow statement to see if the company is generating enough cash to pay its debts. Finally, the creditor may also want to review the company's statement of retained earnings to determine if the company has been able to generate profits over time to pay its debts.
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Related Questions
Both common stock and preferred stock allow shareholders voting rights in the company in which they have invested.
True
False
Answers
Answer:True
Explanation:
The optimal level of resource utilization increases when the marginal resource cost?
Answers
When the marginal revenue product equals the marginal cost of the resource, the degree of resource usage is optimal. The price of an extra unit of a resource, such labor, is referred to as the: Cost of a marginal resource.
Time increases as the team's utilization rate rises; this term refers to how busy a team is, or how many tasks, projects, and work items are in their backlog. Resources needed for the typical service effort needed to finish user stories as part of a development project. Increase in total resource cost caused by hiring one more unit of resource.
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Suppose that a manager is managing a portfolio whose benchmark is the Barclays Capital Intermediate Aggregate Index, which has duration of 4.68. Suppose the market value of the portfolio on March 31, 2018 was $48,559,815. The portfolio duration is 2.97. Suppose the portfolio manager seeks to follow a duration matched strategy and therefore the portfolio’s target duration is the benchmark duration.
Explain how this can be done with the buying or selling of a $100,000 5-year Treasury note futures contract at price $112.79, and dollar duration of $6022. Show all calculations.
(10 marks)
Answers
The portfolio manager should sell 1362 Treasury note futures contracts with a dollar value of $136,200,000 to achieve a duration match with the benchmark.
To implement a duration-matched strategy, the portfolio manager aims to adjust the portfolio's duration to match the benchmark duration. In this case, the benchmark duration is 4.68, while the portfolio duration is 2.97.
To calculate the change in portfolio duration, we can use the formula:
Change in Duration = (Portfolio Duration - Benchmark Duration) * Portfolio Value
Change in Duration = (2.97 - 4.68) * $48,559,815 = -$8,206,705.95
Now, let's calculate the number of Treasury note futures contracts required to offset this duration mismatch:
Number of Contracts = Change in Duration / Dollar Duration per Contract
Number of Contracts = -$8,206,705.95 / $6,022 = -1362.82
Since the number of contracts cannot be negative, the portfolio manager needs to sell 1362 contracts.
To calculate the dollar value of the futures contracts, we multiply the number of contracts by the contract size:
Dollar Value of Contracts = Number of Contracts * Contract Size
Dollar Value of Contracts = 1362 * $100,000 = $136,200,000
Therefore, the portfolio manager should sell 1362 Treasury note futures contracts with a dollar value of $136,200,000 to achieve a duration match with the benchmark.
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What are common characteristics of jobs in the Recreation, Amusements, and Attractions pathway? Check all that apply. part-time travel-related self-employed entry-level food service cleaning service
Answers
Answer part time,self employed,entry level
Explanation:
Within a career cluster, a career pathway is a smaller collection of occupations that employ similar abilities. There are various job paths in each career cluster.
The options, part-time, self-employed, entry-level is the common characteristics.
An example to describe characteristicsSteve works for a modest hotel chain as a generic maintenance worker. When a guest has a problem with their air conditioner or television, he is summoned. Steve works in the Recreation, Amusements, and Attractions route of the Hospitality and Tourism cluster.For more information about job characteristics, refer below
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Which type of account is increased with a credit? multiple choice question. expense asset dividend revenue
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Recognizing revenue for cash or on account enhances assets as well as stockholders' equity. A debit is recorded for a growth in assets (cash or accounts receivable), whereas a credit is recorded for an increase in stockholders' equity (service revenue). Accounts A credit is applied to a receivable account.
Because the owner's capital account has a regular debit balance, the owner's equity account is boosted on the debit side. In effect, a debit rises and a credit decreases an expense account on the income statement. . The account balance is reduced when a debit is placed to any of these accounts.
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Whether risk is present in employment
Answers
Answer:
Step by step explanation
While on a trip, the Mendoza family decided to buy a painting which cost 500. The art dealer would not accept a personal check or credit cards. What method could be used to pay for the painting
Answers
Net banking is the method could be used to pay for the painting, as the art dealer would not accept a personal check or credit cards.
What is Net banking?Netbanking, normally referred to as internet banking, is a computerized way to carry out financial written account online. Any person with a bank account can activate and use this computerized system for their financial transactions.
Net banking, ordinarily referred to as online banking, is always accessible. Customers have access to a variety of financial services through net banking, including the ability to open fixed deposits and recurring deposits, transfer funds, and examine transaction history.
Thus, net banking.
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QD=8000-2PX+0.4I+2PY-4PZ
Where
QD = quantity demanded of good X
PX = price of good X
I = consumer income, in thousands
PY = price of good Y
PZ = price of good Z
a. Based on the demand curve above, is X a normal or an inferior good?
b. Based on the demand curve above, what is the relationship between good X and good Y?
c. Based on the demand curve above, what is the relationship between good X and good Z?
d. What is the equation of the demand curve if consumer incomes are $75,000, the price of good Y is $105, and the price of good Z is $80? Be careful - remember that the income in the equation is in "thousands".
e. What are the intercepts and slope of your demand curve? You do not need to draw the demand curve. Just indicate the price intercept and the quantity intercept and the slope, but show your calculations!!
f. If the price of good X is $100, what is the quantity demanded? Show your calculations!
g. Now suppose the price of good Y rises to $150. What would happen to your demand curve? What are the price intercept, quantity intercept and slope? Show your calculations!
Answers
a. To determine whether good X is a normal or an inferior good based on the demand curve, we need to consider the sign of the coefficient of consumer income (I). If the coefficient is positive, it indicates that good X is a normal good, meaning that as consumer income increases, the demand for good X also increases.
If the coefficient is negative, it indicates that good X is an inferior good, meaning that as consumer income increases, the demand for good X decreases. In the given demand curve equation, the coefficient of consumer income (I) is 0.4, which is positive. Therefore, good X is a normal good.
b. The relationship between good X and good Y can be determined by analyzing the sign of the coefficient of the price of good Y (PY). If the coefficient is positive, it indicates a substitute relationship, meaning that as the price of good Y increases, the demand for good X also increases. If the coefficient is negative, it indicates a complementary relationship, meaning that as the price of good Y increases, the demand for good X decreases. In the given demand curve equation, the coefficient of the price of good Y (PY) is 2, which is positive. Therefore, good X and good Y have a substitute relationship.
c. Similarly, the relationship between good X and good Z can be determined by analyzing the sign of the coefficient of the price of good Z (PZ). If the coefficient is positive, it indicates a substitute relationship, and if the coefficient is negative, it indicates a complementary relationship. However, the coefficient for the price of good Z (PZ) is -4 in the given demand curve equation. Therefore, good X and good Z have a complementary relationship, meaning that as the price of good Z increases, the demand for good X decreases.
d. To find the equation of the demand curve with consumer incomes of $75,000, the price of good Y at $105, and the price of good Z at $80, we substitute the respective values into the demand curve equation:
QD = 8000 - 2PX + 0.4I + 2PY - 4PZ
QD = 8000 - 2PX + 0.4 * 75 + 2 * 105 - 4 * 80
QD = 8000 - 2PX + 30 + 210 - 320
QD = 7920 - 2PX
The equation of the demand curve with the given values is QD = 7920 - 2PX.
e. To determine the intercepts and slope of the demand curve, we need to rearrange the equation in the slope-intercept form (y = mx + b), where QD is y and PX is x:
QD = 7920 - 2PX
This equation can be rewritten as:
QD = -2PX + 7920
Intercepts:
Price Intercept: Set QD = 0 and solve for PX:
0 = -2PX + 7920
2PX = 7920
PX = 3960
The price intercept is $3,960.
Quantity Intercept: Set PX = 0 and solve for QD:
QD = -2(0) + 7920
QD = 7920
The quantity intercept is 7,920.
Slope:
The slope of the demand curve is -2.
f. If the price of good X is $100, we can use the demand curve equation QD = 7920 - 2PX to find the quantity demanded:
QD = 7920 - 2(100)
QD = 7920 - 200
QD = 7720
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when marginal cost is rising: group of answer choices average variable cost must be rising. average total cost must be rising. average variable cost and average total cost must be falling. both average variable cost and average total cost may be rising or falling.
Answers
When marginal cost is rising, both average variable cost and average total cost may be rising or falling.
The relationship between marginal cost and average cost is influenced by the cost structure and production efficiency of a firm. Marginal cost refers to the additional cost incurred by producing one additional unit of output. If marginal cost is rising, it means that the cost of producing additional units is increasing. This can be due to factors such as diminishing returns or increasing input costs.
Average variable cost represents the variable cost per unit of output, while average total cost represents the total cost per unit of output. If marginal cost is higher than both average variable cost and average total cost, it will cause these average costs to increase. However, if marginal cost is lower than the average costs, it will lead to a decrease in average costs.
Therefore, when marginal cost is rising, it does not necessarily imply a specific direction for average variable cost or average total cost. It depends on the specific cost structure and production conditions of the firm.
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According to rankings by many people over the years what is the number one expectation that people have a job they will enjoy
Answers
Answer:doing work that makes the best use of one's abilities and creates a feeling of accomplishment
Explanation:
I'm in 9th and just took that
Economic guided reading 7-3
Answers
The economy fluctuates between periods of expansion (growth) and contraction, which is referred to as the "economic cycle," sometimes known as the "business cycle" (recession).
What is Economic cycle?The present stage of the economic cycle can be determined using variables like gross domestic product (GDP), interest rates, total employment, and consumer expenditure.
Since the economic cycle directly affects stocks, bonds, profits, and corporate earnings, understanding it can help investors and businesses decide whether to invest and when to withdraw their funds.
The stage of the economic cycle we are in at the moment can be determined by variables like GDP, interest rates, total employment, and consumer spending.
Therefore, The economy fluctuates between periods of expansion (growth) and contraction, which is referred to as the "economic cycle," sometimes known as the "business cycle" (recession).
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irms usually offer their customers some form of trade credit. this allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. consider this case: cold duck manufacturing inc. buys on terms of 2/10, net 30 from its chief supplier.
Answers
Payment term of 2/20, net 30 mean if payment is made within 20 days then the customer will get a 2% discount. And the maximum payment term is 30 days.
Cost of credit for one period = 2% / (1 - 2%)= 2.04%
The cost of credit for one period is 2.04%.
Nominal cost of trade credit = 2.04% {365 / (30 - 20)}
= 2.04% 36.50
= 74.46%
Nominal cost of trade credit is 74.46%.
If the supplier shortens the discount period from 20 days to 5 days then the nominal cost of trade credit will decrease.his refers to the money cost of production. This refers to the value of the product in dollars the time when the product was manufactured. Here the inflatons, deflations are not taken into account.
Inflation can be defined as a decrease in the purchasing power of money. This is reflected in higher prices for goods and services in the market. That is, an increase in the price of a commodity over a period of time. One cause of inflation is low supply and high demand for goods and services in the market.
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use an optimization model to determine the best course of action for your real estate company, using the following assumptions: you wish to maximize the net present value of profit over the next eight quarters. assume 6% irr, compounding quarterly. (so 1.5% per quarter) in each neighborhood in which they open an office, they will achieve a baseline of 5.5% market penetration, and earn a 5% commission on sales. for every .1% the commission you charge decreases, your market penetration will increase by .15%, (down to a minimum penetration of 4% or a maximum of 6%) you must pay rent and utilities in each office you open each month. determine the average cost per gross square foot of commercial real estate in your neighborhood for the last year (in nyc historical). [when determining this value, you should exclude properties where gross square feet or sale price is unknown.] each month you will pay 1.5% of this for rent and utilities for each square foot of office space you rent. you must rent at least 250 square feet of office space, plus 125 for each employee you hire. you may hire up to 3 employees. each employee you hire costs a yearly salary $65,000 including benefits, and increases your market penetration by .5%. your monthly operating budget is $15,000. you may add other assumption you deem realistic so long you provide the explanation in your report.
Answers
The best course of action for the real estate company is to open offices in neighborhoods with higher market penetration and lower commercial real estate costs, hire up to 3 employees, and set commission rates to achieve maximum net present value of profit over the next 8 quarters while staying within the monthly operating budget of $15,000.
To optimize net present value of profit, the real estate company should analyze market penetration, commission rates, and real estate costs in each neighborhood to determine which locations will yield the highest profit.
The company should also hire up to 3 employees to increase market penetration while staying within the operating budget. The commission rate should be set to maximize profit while also taking into account the relationship between commission rates and market penetration.
The company should aim to rent office space in neighborhoods with low commercial real estate costs and high market penetration, and adjust the office space size to meet the minimum requirements while minimizing costs.
Finally, the company should regularly monitor and adjust its strategy to adapt to changing market conditions.
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Dimitri owns stock in a u.s. publicly traded company. as a stockholder, dimitri is a(n) ______ of the corporation.
Answers
Based on the fact that Dimitri owns stock in a company in the United States which is publicly traded, he is a stockholder which makes him an owner of the corporation.
What is Dimitri to the company?Dimitri is considered to be an owner of the company because owning a share in a company means that you have ownership rights to their stock.
This is called equity ownership and it is the type of ownership that is seen with publicly traded companies such as the one that Dimitri bought shares in.
Because he is a shareholder and therefore an owner, Dimitri has the right to attend annual general meetings and voice his opinion. He also stands to make a capital gain if the share price of the corporation rises.
In conclusion, Dimitri is an owner.
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Seed capital pays for which of the following?
A. Operating expenses for the first year of a new business
B. Expanding production and advertising budgets
C. Funding for research and development of a business idea
D. Competitive wages for high-tech workers
Edit: It's C
Answers
Answer:
It's C !
Explanation:
Hope you have a good day!
Seed capital pays for: C. Funding for research and development of a business idea.
The seed capital pays for market research for initial steps of product development. For example, development of the prototype or paying for all operating expenses like legal costs.
Seed capital provides operating expenses for the entire process of business. Hence, A is incorrect.
It has no role directly in the expansion of production and advertising budgets. Hence, B is incorrect.
It has no role in decision of competitive wages for high tech workers. Hence, D is incorrect.
Hence, C is correct option.
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There are 5 women and 3 men applicants for a job.Only two out of eight are selected for a job.The probability that at least one of the selected person will be a women is:
Answers
The probability that at least one of the selected persons will be a woman is 15/28
Step by step Explanation:
To find the probability that at least one of the selected persons will be a woman, we can find the probability that both of the selected persons will be men, and then subtract that from 1.
The total number of ways to select two people from a group of 8 is:
C(8, 2) = 28
To select two men from a group of 3 men, we have:
C(3, 2) = 3
To select two people from a group of 5 women, we have:
C(5, 2) = 10
So the total number of ways to select two people with no women is:
C(3, 2) × C(5, 0) = 3 × 1 = 3
Or
C(3, 0) × C(5, 2) = 1 × 10 = 10
Therefore, the probability that both of the selected persons will be men is:
(3 + 10)/28 = 13/28
The probability that at least one of the selected persons will be a woman is:
1 - 13/28 = 15/28
Therefore, the probability that at least one of the selected persons will be a woman is 15/28
A machine operator can program machine #1
Answers
Answer:
yes they can i believe you can achieve anything if you put your mind to it...
Explanation:
When deciding whether to engage in either diversification or vertical integration, Oliver Williamson’s work on transaction cost economics recommends that a company must separate its reason for business expansion from …
Group of answer choices
The strategic competitiveness it may obtain through synergies
The reduction or management of business risk
The organization form that best achieves its objectives
Its search for business growth
The cost of entering the new business
Answers
Company must separate its reason for business expansion from The strategic competitiveness it may obtain through synergies.
Here, correct option is A.
According to Oliver Williamson's work on transaction cost economics, a company should consider the strategic competitiveness it may obtain through synergies when deciding whether to engage in either diversification or vertical integration.
The company must separate its reason for business expansion from the organization form that best achieves its objectives. By focusing on the potential synergies that can be achieved through expansion, the company can determine which approach will yield the greatest strategic advantage.
Therefore, correct option is A.
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what are the characteristics of a high-performance work system approach to hrm? (choose every correct answer.)
Answers
The characteristics of a high-performance work system approach to HRM are A, C and D:
Focuses on collective levels of human and social capitalEnhances the performance of all employees systematicallyImproves employee motivation and opportunitiesHigh work performance system: what is it?A high-performance work system is a collection of HRM techniques intended to advance employees' abilities, motivation, and engagement in order to give a company a long-term competitive advantage.
Note that Increased employee commitment leads to improved organizational performance because high performance work systems have an impact on and align employees' attitudes and behaviors with the organization's strategic goals (Schuler and Jackson, 1987).
An example of High Performance Work System Practices (HPWS) are:
Ensuring Employee Security, Strict Selection, Decentralized Decision-Making, High Results-Based Compensation, Training by Commitment, Abolishing Status Barriers, Sharing Key Information.Learn more about high-performance work from
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See options below
Focuses on collective levels of human and social capital
Be good to all
Enhances the performance of all employees systematically
Improves employee motivation and opportunities
For each situation, select one option from below that you think will help increase profit.
These are answers for the question to put on
1.Avoid extra payroll expenses.
2. Get the best rates on advertising.
3.Change the product you provide.
4. Use resources wisely.
5. Beat the competition.
6. Get the best rates on supplier purchases.
7. Eliminate some free services.
8. Increase worker efficiency.
Answers
Four important elements can contribute to profitability. Costs are coming down, turnover is going up, production is going up, and efficiency is going up.
Choose the option from the list below that you believe will help enhance profit for each circumstance.1. Limit additional payroll costs- Increase
2. Find the best advertising prices- Increase
3. Modify the offering you make- decrease
4. Make good use of resources- Increase
5. Outperform the opposition- Increase
6. Find the most affordable supplier prices- Increase
7. Discontinue a few free services - No effects
8. Boost personnel effectiveness- Increase
What does "profit" mean?Profit is the term used to describe the financial gain experienced when the revenue from a commercial activity exceeds the costs, costs, and taxes associated with maintaining that activity.
In accounting, a profit is an income that is given to the owner throughout a successful market producing process. Profitability, which is the owner's primary interest in the income-formation process of market production, is measured by profit. There are various profit metrics that are frequently used.
How are earnings raised?Profitability may be boosted in four important areas. Costs are being cut, turnover is rising, productivity is up, and efficiency is up. You can also diversify into new market segments or create brand-new goods or services.
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Banks do not hold a lot of their assets in the form of cash mainly because of:
a. regulation.
b. the fear of being robbed.
c. the opportunity cost of holding cash, cash does not earn interest.
d. it can encourage employee theft.
Answers
Banks do not hold a lot of their assets in the form of cash mainly because of the opportunity cost of holding cash, cash does not earn interest. The correct option is C.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
The interest that could have been made if the cash had been used to buy bonds instead is the opportunity cost of keeping any money balance.
Therefore, due to the opportunity cost of holding cash and cash does not earn interest banks does nor prefer to hold a lot of their assets in the form of cash .
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Daube Company's operations for the month of July are summarized as follows: Provided $8,600 of services on account. Received $3,800 cash from customers for services provided in July. Received $1,100 cash for services to be provided in August. Received $5,100 cash from customers on account for services provided in June. Paid June’s warehouse rental bill on account in the amount of $1,200. Received July’s warehouse rental bill of $1,300; set it aside to be recorded at a later date. Required: Determine the net income for July using the cash basis of accounting. Determine the net income for July using the accrual basis of accounting.
Answers
Answer: See explanation
Explanation:
a. Determine the net income for July using the cash basis of accounting.
Revenue = $3800 + $1100 + $5100 = $10000
Less: Expense = $1200
Net Income = $10000 - $1200 = $8800
b. Determine the net income for July using the accrual basis of accounting.
Revenue = $8600 + $3800 = $12400
Less: Expense = $1300
Net income = $12400 - $1300 = $11100
In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as
Answers
Answer:
Vendors
Explanation:
Vendor is a common word to describe a person or organization that is given the duty to procure, buy, or deliver products or commodities and services usually at wholesale rates based on agreements. An organization may however have its internal vendor.
In this case, the buying function in a firm including gathering and screening information about products and services, prices, and suppliers, are known as VENDORS
PLEASE HELP ME
My career is a traveling nurse
Answers
Answer:
Step by step explanation
If you know you are at risk of becoming unemployed, you should _____. a. wait until you officially lose the job to worry b. get additional education to learn new skills c. spend all your money while you are still making it d. ignore the economy, because it is always changing
Answers
Answer:
B is the smartest option
The correct option is B. If you know you are at risk of becoming unemployed, you should get additional education to learn new skills.
When done properly, skill development can lower unemployment and underemployment, boost productivity, and raise living standards. It makes economic sense to assist people in expanding and updating their skill sets.
What is the importance of skills?Enhances communication, time management, and negotiation abilities, as well as the ability to expand one's professional network. Talent Development: Skills are something that can be learned. People can find, develop, and nurture their intrinsic talent in the preferred sector with the aid of skill training.
Fundamentally, skills development helps people to pick up new talents in order to find employment and possibly launch a lifetime career. Youth are especially vulnerable to unemployment in our country, which affects 29% of the population; 55.2% of those between the ages of 15 and 24 are jobless.
The best choice is B. If you are aware that you could lose your job, you should continue your education to pick up new skills.
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The performance of a bank that continually concentrates in short-term deposits in euros and adjustable rate dollar loans with equal-rate sensitivity is:___________
a) unaffected if euro interest rates increase and US rates decrease
b) unaffected is US interest rates increase and euro interest rates decrease
c) adversely affected if European interest rates increase and US rates decrease
d) adversely affect if US interest rates increase and euro rates decrease
e) A and B
Answers
Answer:
Search it for the best answer
Answer:
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Haughton company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of july, the firm processed three jobs: x13, x14, and x15, of which x13 was started in june.
Answers
WILL GIVE BRAINLIEST!! Answer the following 3 questions A, B, or C
Answers
Answer:
B
C
A
Explanation:
Answers:
1.B
2.C
3.A
.....
A portfolio consists of a short position in 1500 shares of a nondividend paying stock with spot price $20. a long position in 2000 calls struck at $25 and expiring in 6 months on the stock, assumed lognormally distributed with 40% volatility, • $20,000 in money account with annual interest rate 4% continuously compounding. (a) What is the value of the portfolio? Round your answer to the nearest cent. (b) How do you adjust the portfolio in order to make it delta neutral without affecting the value of the portfolio?
Answers
a. Value of the short position = -$30,000
b. the value of call value is -$2.443
c. the value of portfolio is -$12,442.443
To calculate the value of the portfolio, we need to consider the value of the short position, the long position in calls, and the money account.
(a) Value of the Short Position:
The value of the short position in the stock is calculated as the negative of the product of the number of shares and the spot price.
Value of the short position = - (1500 * $20) = -$30,000
(b) Value of the Long Position in Calls:
The value of the long position in calls can be calculated using the Black-Scholes formula. The formula is as follows:
Call Value = S * N(d1) - X * e^(-r * T) * N(d2)
Where:
S = Spot price of the stock = $20
N() = Cumulative standard normal distribution function
d1 = (ln(S / X) + (r + (σ^2) / 2) * T) / (σ * sqrt(T))
d2 = d1 - σ * sqrt(T)
X = Strike price of the calls = $25
r = Annual interest rate = 0.04 (continuously compounded)
T = Time to expiration = 6 months = 0.5 years
σ = Volatility = 0.40
Calculating d1 and d2:
d1 = (ln(20 / 25) + (0.04 + (0.40^2) / 2) * 0.5) / (0.40 * sqrt(0.5))
= -0.5616
d2 = -0.5616 - (0.40 * sqrt(0.5))
= -1.019
Calculating N(d1) and N(d2):
N(d1) = 0.2850
N(d2) = 0.1572
Calculating Call Value:
Call Value = 20 * 0.2850 - 25 * e^(-0.04 * 0.5) * 0.1572
= $1.425 - 24.5861 * 0.1572
= $1.425 - $3.868
= -$2.443 (rounded to the nearest cent)
(c) Value of the Money Account:
The value of the money account is simply the amount in the account, which is $20,000.
Now, we can calculate the value of the portfolio by summing up the values of the short position, long position in calls, and the money account.
Value of the Portfolio = Value of the Short Position + Value of the Long Position in Calls + Value of the Money Account
= -$30,000 + (-$2.443) + $20,000
= -$30,000 - $2.443 + $20,000
= -$12,442.443 (rounded to the nearest cent)
(b) To make the portfolio delta neutral without affecting its value, we need to adjust the positions so that the delta of the portfolio becomes zero. The delta of an option represents the sensitivity of its value to changes in the underlying stock price.
To calculate the delta of the long position in calls, we can use the Black-Scholes delta formula:
Delta = N(d1)
Since we have 2000 calls, the total delta of the long position is:
Delta of Long Position = 2000 * N(d1)
To make the portfolio delta neutral, we need to add a short position in the stock to offset the delta of the long calls. The number of shares in the short position can be calculated as:
Number of Shares = Delta of Long Position / 1
Finally, to adjust the portfolio to be delta neutral, we need to sell the calculated number of shares of the stock.
To learn more about portfolio, refer below:
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It is important to receive feedback from customers and employees on a prototype's efficacy. What is
efficacy?
A. How well something decreases raw materials cost
B. How well something increases profits for shareholders
C. How well something accomplishes the goal it was set out to accomplish
*any trolls will get reported*
Answers
Efficacy means the ability to produce the desired output.
It is definitely important to get feedback from employees and customers.
The raw material cost should be reduced subject to not reducing the quality of the raw material. If the raw material quality is affected then it would affect the sales.
To maximize the shareholder profit the sales should be increased and the cost should be reduced. And strategies should be taken to increase sales.
Achieving the goals and objectives would in turn increase the shareholder's return.
To achieve the goals and objectives strategic planning should be undertaken by the company.