Business, 16.12.2019 23:31 willcohen42
Construct profitt diagrams or profit tables on expiration to show what position in ibm puts,
calls and/or underlying stock best expresses the investor's objectives described below. as-
sume ibm currently sells for $150 so that prot diagrams/ tables between $100 and $200 (in
$10 increments) are appropriate. also assume that "at the money" puts and calls cost $15
each. (as usual, the prot calculations ignore dividends and interest.)
(a) an investor wants upside potential if ibm increases but wants (net) losses no greater
than $15 if prices decline.
(b) an investor wants to capture prots if ibm declines in price but wants a guaranteed
limited loss if prices increase.
(c) an investor wants to capture prots if ibm declines in price and is ready to accept
unlimited losses if prices increase. further, the investor wants to break even if the stock
price does not change between now and the maturity of the options.
(d) an investor wants to prot if ibm's upcoming earnings announcement is either unex-
pectedly good or disappointingly bad.
Answers: 3
Business, 22.06.2019 01:40
Suppose general motors demands labor according to the labor demand function 푤푤= 40−0. 5퐸퐸, where 푤푤 is the hourly wage and 퐸퐸 is the number of employees. the united auto workers union has a utility function given by 푈푈=푊푊∗퐸퐸. a.in 1984, the united auto workers union started negotiations with general motors by assuming that they were a monopoly union. find the wage and employment demands that the united auto workers union would have demanded before any bargaining began. b.if general motors and the united auto workers union both had excellent bargaining representatives, would this be the final labor contract? if not, then explain in words and graphically where they would end up after the bargaining process.
Answers: 1
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Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. t/f
Answers: 1
Business, 22.06.2019 09:50
phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)
Answers: 3
Business, 22.06.2019 20:00
Acompetitive market in healthcare would a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers b. underprovide healthcare because it would eliminate medicare and medicaid c. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers d. overprovide healthcare because it would be similar to the approach used in canada
Answers: 1
Construct profitt diagrams or profit tables on expiration to show what position in ibm puts,
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