Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock’s current price, S0, is $120, and a call option expiring in one year has an exercise price, X, of $120 and is selling at a price, C, of $18. With $14,400 to invest, you are considering three alternatives. A. Invest all $14,400 in the stock, buying 120 shares. B. Invest all $14,400 in 800 options (8 contracts). C. Buy 100 options (one contract) for $1,800, and invest the remaining $12,600 in a money market fund paying 6% in interest over 6 months (12% per year)
Answers
Option A provides higher level of risk. Option B provides leverage. Option C provides low level of risks.
If you believe that Apple stock is going to appreciate substantially in value in the next year and are considering how to invest $14,400, you have three options.
Option A is to invest all $14,400 in the stock by buying 120 shares at the current price of $120 per share. This option is straightforward and would give you direct exposure to the stock's potential appreciation.
Option B is to invest all $14,400 in 800 call options (8 contracts) with an exercise price of $120 and a current price of $18 per option. This option provides leverage and the potential for higher returns if the stock appreciates significantly, but also involves a higher level of risk as the options could expire worthless if the stock price does not increase as anticipated.
Option C is to buy 100 call options (one contract) for $1,800 and invest the remaining $12,600 in a money market fund paying 6% interest over 6 months (12% per year). This option involves a lower level of risk than option B as the money market fund provides a guaranteed return, but also limits potential gains if the stock price appreciates substantially.
Ultimately, the best option depends on your risk tolerance and investment goals. Option A provides direct exposure to the stock's potential appreciation but carries the highest level of risk. Option B provides leverage and higher potential returns but also involves a higher level of risk. Option C involves a lower level of risk but also limits potential gains. It's important to carefully consider your investment objectives and risk tolerance before making a decision.
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Related Questions
The traits of middle level managers do not significantly affect the productivity level of crews in food chains. this is an example of alternative hypothesis.
Answers
The alternative hypothesis states that the traits of middle-level managers do have a significant impact on the productivity level of crews in food chains.
The alternative hypothesis challenges the null hypothesis, which suggests that the traits of middle-level managers have no significant effect on crew productivity in food chains. The alternative hypothesis posits that middle-level managers play a crucial role in influencing the productivity of crews.
Middle-level managers act as a bridge between top-level management and front-line employees, and their leadership style, communication skills, decision-making abilities, and overall management approach can have a direct impact on crew performance. If the alternative hypothesis is supported by empirical evidence, it implies that investing in developing effective middle-level managers could lead to improved productivity and overall success in food chain operations.
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QUESTION 10 The inventory turnover is computed by dividing cost of goods sold by a. ending inventory. b. average inventory. c. beginning inventory. d. 365 days.
Answers
The inventory turnover is computed by dividing the cost of goods sold by the average inventory. So, the correct option is b. average inventory.
Here's a step-by-step explanation:
1. Compute the cost of goods sold (COGS): This is the total cost of all the products that were sold during a specific period.
2. Determine the beginning inventory: This is the value of the inventory at the start of the period.
3. Determine the ending inventory: This is the value of the inventory at the end of the period.
4. Calculate the average inventory: Add the beginning and ending inventories and divide by 2.
5. Compute inventory turnover: Divide the cost of goods sold by the average inventory.
Inventory turnover is an important metric to evaluate how efficiently a company manages its inventory and generates sales from it. A higher inventory turnover indicates better inventory management and faster-selling products.
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This week, our focus is on capability development and organizational structure as they apply to strategy implementation. For this critical thinking assignment, read Chapter 6, "Organizational Structure and Management Systems: The Fundamentals of Strategy Implementation" and evaluate a KSA company and their processes of strategy execution.
How does the strategy developed in the strategic planning processes translate into action for this company? Consider the role of capital expenditure budgets, operating plans, and performance management systems.
What role do resources, processes, motivation, play in strategy execution in this company and what stands in the way?
How does this company’s structure and management system promote the effective implementation of the company’s strategy?
What specific organizational capability should the company develop to support implementation?
Answers
The strategy developed in the strategic planning process translates into action for this company by focusing on capital expenditure budgets, operating plans, and performance management systems. These elements work together to guide the company in achieving its goals.
Resources, processes, and motivation are all essential components of strategy execution. Resources provide the necessary inputs to complete tasks while processes are the steps that need to be followed. Motivation serves as the driving force behind getting things done. Potential obstacles to strategy execution could include lack of resources, insufficient planning, and/or inadequate motivation.
The company's structure and management system should promote effective implementation of the strategy by providing a clear framework for how the strategy should be executed. This includes providing direction for how the resources should be used, what processes should be followed, and how performance should be monitored and evaluated.
Specific organizational capabilities that should be developed include ensuring the resources are used effectively, implementing the processes, and providing proper motivation and feedback to employees.
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A commercial building would be classified as a(n)
part.
piece of equipment.
installation.
supply.
Answers
Answer:
installation.
Explanation:
A commercial building would be classified as an installation.
Answer:
supply
Explanation:
because from there supply willl be done
What is the relationship between time management and decision making?
Answers
The relationship between time management and decision making is that time management is an integral part of the decision-making process.
Time management and decision making are two essential skills that are interdependent on each other. The way you manage your time can influence the quality of your decision-making, and the decisions you make determine how you allocate your time effectively.
Decision-making requires the evaluation of options and selecting the best alternative that satisfies your needs. Therefore, the ability to manage your time effectively can help you evaluate your options more efficiently, resulting in better decision-making. Effective time management also allows you to allocate your resources to the most important activities, which can improve the outcome of your decisions by reducing the chances of rushing through decisions. Poor time management can lead to ineffective decision-making because it can force you to make rushed decisions, leading to mistakes and poor outcomes.
To make good decisions, it is essential to manage your time effectively, prioritize your tasks, and avoid procrastination. Good decision-making skills require proper planning, a clear understanding of the problem, and the ability to assess and weigh the available options. Time management helps to optimize the decision-making process by providing you with adequate time to analyze the situation, brainstorm solutions, and identify the best course of action.
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a)
Critically analyses how changes in corporate governance and
stakeholder expectations about corporate social responsibility
(CSR) may require Emirates Group to develop new capabilities and
influence
Answers
Changes in corporate governance and stakeholder expectations regarding corporate social responsibility (CSR) can significantly impact an organization like Emirates Group, requiring the development of new capabilities and influencing strategic choices.
Based on the analysis using the Stakeholder Theory and the VRIO framework, Emirates Group may need to invest in developing new capabilities related to CSR and sustainability to meet changing stakeholder expectations.
Stakeholder Theory: Stakeholder theory suggests that organizations should consider the interests of various stakeholders, such as customers, employees, communities, and the environment, in addition to shareholders.
Emirates Group would need to develop new capabilities to meet stakeholder expectations regarding CSR. This could involve implementing sustainable practices, reducing carbon emissions, promoting diversity and inclusion, ensuring employee welfare, and engaging with local communities.
VRIO Framework: The VRIO framework helps assess a company's resources and capabilities to determine their competitive advantage.
a) Valuable: Emirates Group needs to determine if its current capabilities in CSR and sustainability are valuable in meeting stakeholder expectations.
b) Rare: Emirates Group must assess whether its CSR capabilities are rare compared to competitors.
c) Inimitable: Emirates Group should evaluate if its capabilities in CSR are difficult to imitate.
d) Organized: Lastly, Emirates Group needs to analyze if its capabilities in CSR are effectively organized and integrated into its overall strategy and operations.
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Complete Question : How changes in corporate governance and stakeholder expectations about corporate social responsibility (CSR) may require Emirates Group to develop new capabilities and influence the choice of strategies they follow. The use of appropriate frameworks and analytic tools with reference to the organization is expected.
You have decided to pursue a career in nursing. You are willing to relocate based on salary differences. The states you are willing to relocate to have the following average hourly wages: NY = $33.55, MA = $33.37, CA = $31.54, and FL $24.58. What is the mean salary for these options?
Answers
Your answer :
The mean of salary for these options is $30.76\
hope I helped. :)
Morning light does not enter the swamp. Even the sunrise is dark. Still, time progresses, night into day
A picture of bayou country is deceiving Slow streams converge under mud to make the appearance of land that is actually water. One net of moss hangs from one hundred trees. Lightning strikes the
same stump many times.
People pass the swamp's fringes in trains, on tracks that cling to the last solid ground. Out of their windows are landscapes that take the earth's colors to every periphery, Bright orange sunsets
surround people like sky on an airplane. On gray foggy mornings they ride through a dream that has no beginning or end. But time has its limits, these people know. They are expected places--Memphis
by midnight, New Orleans by dawn
Deep in the swamp, animals keep the only appointments Birds gather at high places in trees. Raccoons make their last noisy passes for food across someone's back porch before he awakes. Fish all
around splash up, although they cannot see the morning coming to clean the picture of day like clothes bleaching in a galvanized tub from dark gray to light gray
Joan looked out from the porch to the swamp she had known all her life. Ahead of her in the veiled light were the outlines of many trees. Below and around her were the crisp sounds of nature
awakening Cupped in both hands, perched on her knees was a warm mug of coffee.
Which of the following can the reader infer from the passage above?
O Travelers sleep throughout the journey.
O The ride is for airplane passengers to see the sky.
O Travelers lose their sense of the outside world.
Answers
Answer:
Travelers lose their sense of the outside world.
Explanation:
Study Island
The problems of ineffective communications in business
Answers
Answer:
Misunderstandings: When communication is unclear or ambiguous, it can lead to misunderstandings between employees, managers, or clients. This can cause delays, mistakes, and ultimately, loss of productivity and revenue.
Poor teamwork: Effective communication is essential for effective teamwork. If team members are unable to communicate effectively with one another, they may fail to collaborate and coordinate their efforts, leading to poor performance and results.
Low morale: When communication is ineffective, it can create a negative work environment and lead to low employee morale. This can result in a lack of motivation, decreased productivity, and high turnover rates.
Customer complaints: Poor communication with customers can result in complaints and loss of business. Customers who feel that their concerns or questions are not being addressed may take their business elsewhere.
Increased costs: Ineffective communication can lead to additional costs for a business, such as rework or waste due to misunderstandings or mistakes. This can negatively impact the bottom line and reduce profitability.
Overall, ineffective communication can have significant impacts on a business's productivity, profitability, and reputation. It is essential for businesses to prioritize effective communication strategies to avoid these problems and ensure success.
Explanation:
If the marginal benefit of the first donut is 30, the marginal benefit of the second donut is 15, and the marginal benefit of the third donut is 10,
what is the total benefit from eating 2 donuts?
Answers
Answer:
45
Explanation:
Marginal benefit is the additional satisfaction gained from consuming an additional unit of the good. It refers to the advantage associated with the consumption of one more unit of a product. The total benefit is total satisfaction derived from the consumption of goods and services.
The total benefit of consuming two doughnuts is the sum of consuming the first two doughnuts.
= 30 +45
=45
As the technology manager for your firm, you have been tasked with identifying options for cloud-based software and hardware that will be hosted by an external vendor. In addition, the firm wants control over the operating system, underlying applications, and some of the software packages. Based on these specifications, you will be evaluating _____.
Answers
Based on making specifications, on identifying options for cloud-based software and hardware, you will be evaluating Cloud computing.
What is Cloud computing?Cloud computing serves as the process involving delivering of hosted services over the internet.
Therefore, Cloud computing involves making different services through the Internets, such as data storage.
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what is the best free editing app for gamers?
Answers
"Describe different returns management strategies and their
impact on the supply chain of amazon. (800 - 1000 words)"
Answers
The different returns management strategies employed by Amazon impact the supply chain in various ways. While customer-centric policies and convenient return processes contribute to customer satisfaction and loyalty, they also increase reverse logistics costs and create complexities in inventory management.
The returns management strategies employed by Amazon have a significant impact on its supply chain. Let's discuss different strategies and their effects.
1. No-Questions-Asked Return Policy:
Amazon's no-questions-asked return policy allows customers to return products for any reason, without providing a detailed explanation. This strategy aims to enhance customer satisfaction and trust. By offering a hassle-free return experience, Amazon ensures a positive customer experience and encourages repeat purchases. However, this policy can lead to an increase in returns volume, which affects the supply chain in terms of reverse logistics and inventory management.
2. Prepaid Return Labels:
Amazon provides prepaid return labels to customers, making the return process convenient and cost-effective. Customers can print the labels and drop off the package at a designated location, such as a post office. This strategy streamlines the returns process, reduces customer effort, and minimizes shipping costs for Amazon. However, it adds complexities to the supply chain as the company must manage the logistics of return shipments.
3. Returnless Refunds:
In some cases, Amazon offers returnless refunds, which means customers receive a refund without returning the product. This strategy is typically employed for low-value items where the cost of processing returns exceeds the item's value. Returnless refunds save on reverse logistics costs, enhance customer convenience, and improve overall efficiency. However, it may lead to abuse by customers who falsely claim items are defective, impacting profitability.
4. Liquidation and Resale:
When products are returned, Amazon assesses their condition and decides whether to resell them or liquidate them. Reselling refurbished or lightly used products helps recoup losses and minimize waste. Amazon also uses platforms like Amazon Warehouse Deals to sell these items at discounted prices. However, this strategy requires additional processing and quality control measures to ensure customer satisfaction and avoid negative impacts on the supply chain.
5. Data Analysis and Process Improvement:
Amazon extensively analyzes return data to identify patterns and address underlying issues. This enables them to make data-driven decisions to improve product quality, reduce returns, and enhance the customer experience. Analyzing returns also helps identify opportunities for product improvements, supplier evaluation, and supply chain optimization. By leveraging data analysis and process improvement, Amazon strives to minimize returns, optimize operations, and continuously enhance the supply chain.
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What is the definition of the product/service bundle?.
Answers
Answer:
Product-service bundle definition
Essentially, product bundling is a pricing strategy wherein you group individual products before selling them as a single unit.A product bundling marketing strategy is used to encourage your customers to make more purchases.
I hope this helps :)
The number of minorities in the workforce is _____. a. diminishing b. increasing c. unchanging d. decreasing
Answers
Answer:
Option b (increasing) is the correct choice.
Explanation:
Business owners may use statistics on either the minority race demographic to select a representative sample of about there workers with either the aspects of the brand living nearby. The population group query has also been used to obtain a depend on a number element.The remaining three options are not relevant to the situation in question. It should be the correct solution to the above.
Answer:
it is b
Explanation:
hope this helps
Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of calzones. Based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the decrease in the price of calzones?.
Answers
Based on the arguments given, the best option is that A)If the equilibrium quantity of calzones increases, then the supply shift in the market for calzones must have been larger than the demand shift.
Effect of Supply increasingThe number of those selling calzones has increased which would lead to the Supply curve shifting right. This will lead to an increase in the equilibrium quantity.
Effect of demand decreasingThe increase in the complimentary good of beer led to a fall in price and equilibrium quantity as the demand curve shifted leftward.
Dominant causeIf the equilibrium quantity increases then it means that the effect of supply increasing was more than the effect of demand decreasing to the extent that it overrode the decreased quantity as a result of reduced demand.
In conclusion, option A is correct.
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Identify which of the following statements is true. Group of answer choices In a tax-free reorganization, the acquiring corporation's holding period for the acquired properties includes the period of time the target corporation held the properties. The receipt of cash by a shareholder results in the recognition of all of his or her realized gain even if the transaction qualifies as a tax-free reorganization. In a tax-free reorganization, if the acquiring corporation uses nonmonetary boot property, gains or losses will be recognized by the acquiring corporation. All of the above are false.
Answers
Answer:
d
Explanation:
Which of the following is a benefit of U.S. companies doing business
domestically instead of internationally?
A. Having to exchange currencies
B. Having familiarity with laws and regulations
C. Having to negotiate payment options with the world bank
D. Having to learn about different customs, taboos, and manners from different countries
Answers
Answer:
A
Explanation:
One of the major drawbacks of international business is currency exchange rates. Since, economies are unpredictable, there is always an economic risk associated with international trade. A can get expensive or cheaper with the currency exchange rates of other countries. Leading to an unpredictable balance of trade.
However, this risk is not present in domestic business. So for U.S. companies doing business domestically instead of internationally can save them from tremendous economies challenges caused by currency exchange rates.
Answer:
Having familiarity with law and regulations
Explanation:
a project does not include question 29 options: unique elements. a specific objective. repetitive same or similar work. creating a new product or service.
Answers
A project does not include unique elements.
Projects have different characteristics than work in progress or business activities. These are not routine business processes and have fixed start and end dates. This characteristic is important because most of the project effort goes into ensuring that the project is completed on time. To do this, a schedule is created that indicates when the task will start and end.
Projects are time-bound and have fixed start and end dates.A project is completed when the project goals are achieved or when it is determined that the project is no longer feasible.
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when does the company go in loss
Answers
Jessica bought a new shirt at the store when they were having a 15%, percent off sale. If the regular price of the shirt was $37 how much did jessica pay with the discount?.
Answers
The final price that Jessica paid for a $37 shirt after a 15% discount is $31.45
If the regular price of a shirt costs $37, and the store is having a 15% off sale for the shirt, we can then calculate the discount with the following calculation:
Discount = 15/100 × 37
Discount = 5.55
Therefore the discount is $5.55
We can then calculate the final price that Jessica has to pay with the following calculation:
Final price = regular price - discount
Final price = 37 - 5.55
Final price = 31.45
Therefore the final price that Jessica has to pay after the discount is $31.45
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Spyder corporation’s technology and business strategies became entangled, what would this be considered?.
Answers
The entanglement that is happening between the technology and business strategy could be regarded as a clash.
What is a business entanglement.This is the result of the fact that there is less transparency and openness in the business.
The entanglement would be a clash between two or more of the objectives and the policies of the business.
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Whalen Court should be top priority because it required the least amount of capital but is expected to return greater than average profits and had a large margin of safety in terms of needed sales compared to sales forecasts True False
Answers
False, The statement claims that Whalen Court should be the top priority because it requires the least amount of capital, and has a large margin of safety in terms of needed sales compared to sales forecasts.
The statement suggests that Whalen Court should be the top priority based on three factors: requiring the least amount of capital, expected higher than average profits, and a large margin of safety in terms of needed sales compared to sales forecasts. However, without specific data and analysis, it is not possible to determine the accuracy of these claims.
While requiring less capital may seem advantageous, it is essential to consider other factors such as operational costs, market demand, and potential risks. Similarly, the expectation of greater profits than average needs to be supported by comprehensive market research and financial projections.
Overall, a comprehensive evaluation, including detailed financial analysis, market research, risk assessment, and consideration of other investment opportunities, is necessary to make an informed decision about the prioritization of Whalen Court or any other investment option.
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At the beginning of the week, Jared had $50 in his bank account. On Tuesday, he made a $20 withdrawal. Thursday he made a $50 deposit. On Friday, he made a withdrawal of $50. What was the balance in Jared's bank account at the end of the week?
Answers
Answer:
Please help me
Explanation:
Private and public sector organizations that must follow HIPAA provisions are called ____________________.
Answers
Answer:
covered entities
Explanation:
Can someone please explain to me what "spreading overhead" means in terms of business strategy and economics?
Answers
Explanation:
The concept of 'spreading the overhead' refers to using an allocation method to distribute the indirect overhead costs accross produced goods.describe the key features of the reciprocal method. the reciprocal allocation method explicitly includes the mutual services provided
Answers
The key features of the reciprocal method are explicitly including the mutual services provided among all support departments, interdepartmental relationships, and are fully incorporated into the support department cost allocations.
Reciprocal method utilizes concurrent equations to allocate the cost acquired by service departments to other departments. Furthermore, the method is also used to make cost allocation between the service departments. The outcome of the method is a precise cost distribution. The reciprocal method completely acknowledges the service departments by enabling a reallocation back to each service departments. The reciprocal method enables the accounting of the fact that service departments frequently provide services for each other and represent interdepartmental relationships.
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friends shawna, dell, and roberta purchase a home together. because they want to ensure that no one is displaced from the home in the event of one owner's death, they decide to hold title in such a way that if any of them dies, the others own the deceased person's share. how should they hold title?
Answers
To hold title in such a way that if any of them dies, the others on the deceased person's share, should hold the title as Joint tenancy.
In financial markets, a share is a unit of equity possession within the capital stock of an organization and can talk to devices of mutual funds, restricted partnerships, and actual estate investment trusts. Proportion capital refers to all the shares of a business enterprise.
Shares constitute fairness ownership in an agency or financial asset, owned by means of investors who trade capital to go back for those gadgets. Common shares enable voting rights and viable returns via charge appreciation and dividends.
Agencies promote shares to raise capital for their enterprise. They difficulty stocks through preliminary public imparting inside the number one marketplace, which can be then traded in the secondary marketplace.
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If the natural rate of unemployment was 5 percent, the current unemployment rate was 6 percent, and potential GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed
Answers
Answer:
$80 billion
Explanation:
Okun law equation: GDP gap = Actual GDP * ((Unemployment rate - Natural rate)/100)*2)
GDP gap = $4,000 * ((6-5)/100*2)
GDP gap = $4,000 * 0.02
GDP gap = $80 billion
Therefore, $80 billion in an output level thus, would be what the economy would have sacrificed.
a stock has a beta of 1.65, the expected return on the market is 15 percent, and the risk-free rate is 6.75 percent. what must the expected return on this stock be?
Answers
According to the given information the expected return on this stock must be 20.36 percent.
To calculate the expected return on a stock with a given beta, market return, and risk-free rate, you can use the Capital Asset Pricing Model (CAPM) formula: Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate) In this case, the stock has a beta of 1.65, the expected market return is 15 percent, and the risk-free rate is 6.75 percent. Plugging these values into the formula: Expected Return = 6.75 + 1.65 * (15 - 6.75 Expected Return = 6.75 + 1.65 * 8.25 Expected Return = 6.75 + 13.6125 Expected Return = 20.3625 The expected return on this stock must be 20.36 percent.
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