For which of the following is the profit less than the payoff? O Only a long call Only a short call Only a long put Only a short put O Only a long forward Both a short call and a short put Both a long call and a long put Long call and short call

Q: A long forward contract becomes more valuable as the price of the asset declines Group of answer…

A: An agreement between a buyer and a seller to buy an item at a specific price and date in the future…

Q: The discounted payback rule will give the same result as the NPV rule when the cut-off rule is…

A: Net present value (NPV): The net present value is a technique used for making the investment…

Q: 1. When applying lower of cost or market, market value A. is defined as the selling price B.…

A: This Net realizable value(NRV) generally a common method used in valuation of an asset in inventory…

Q: What is a satisfiable investment? When the present value of benefits surpasses the cost of an…

A: This question explains about the present value of benefits surpasses and the cost of an investment…

Q: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: of the Disadvantages of the method Discounted payback period is Ignores the time value of money…

A: Step 1 The discounted payback period (DPB) is the time it takes for a project's original cost to…

Q: The profit equation is: Multiple Choice (Unit price x Q) - (Unit variable costs x Q) - Total fixed…

A:

Q: 1.what are the profit of operating 2 shifts? 2.what are the profit of operating 1 shift (Current…

A: Profitability Analysis helps the management in identifying alternate options in order to aid in…

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor…

A: Leisure refers to the time when an employee is not working can spend the desired time in their own…

Q: Discuss the following components of break-even analysis: fixed costs, variable and semi-variable…

A: Break-even point: It is the point at which the contribution margin earned on sales is equal to fixed…

Q: Historical cost numbers are usually harder than market value numbers select one :   True, or ,…

A: Historical cost: It is the cost of acquisition or say it is initial cost when customer acquire the…

Q: When output (Q) is increasing in the short run, Marginal Cost will be O decreasing O staying the…

A: Marginal cost (MC) refers to the additional cost incurred when producing one additional unit of…

Q: Which of the following statements is correct? Da. If price equals cost, sellers are earning no…

A:

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: Explain the concept of Contango, Backwardation & Roll-Yield? Also explain how positive and negative…

A: An investor executes a trade in the market based on the current and expected future position of…

Q: (Profit) What is the impact of decreasing/increasing radius kettle (m) with regarding to heat time?…

A: Just as radius kettle (m) and heat time are correlated so is profits being earned or generated by a…

Q: If the decision is to select the alternative with the maximum profit, then the alternative with the…

A: Present worth is the present value of all future cashflows discounted at given discount rate

Q: Pick ONE of the two options... Option 1: Diminishing marginal utility holds that the additional…

A: One would experience diminishing marginal utility for a good or service over time as they became…

Q: which of the following is true? a lower payment amount results in a higher FV, other things equal.…

A: Future value is the value of the money invested today at some future date on the basis of the…

Q: Which one is fixed cost اخترأحد الخیارات a. Both A & B O b. Rent,salaries, Insurance O c. Only B…

A: The fixed costs are the costs which remain fixed for the period of time.

Q: Consider two different forward contracts on the same consumption asset. There are no storage costs.…

A: Two different forward contracts on the same consumption asset but with different maturities are…

Q: Competition-based pricing is a variation of break-even pricing. O True O False

A: The amount of money, or change in value, at which an asset must be sold in order to pay the expenses…

Q: Using Put-Call Parity, prove that the delta of a Put is equal to the delta of a Call minus 1. What…

A: A put option is a financial contract that gives the holder (buyer) the right, but not the…

Q: As the discount rate increases A. present value factors decrease B. Present value factors remain…

A: Solution: As the discount rate increases "present value factors decrease".

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: The additional return earned by holding a commodity that is in short supply or a nonpecuniary gain…

A: Answer- The Convenience Yield - A premium that is earned by people who hold a physical commodity.…

Q: The benefit lost when choosing one option precludes receiving the benefits from an alternative…

A: Cost refers to the amount of resources (such as time, money, or effort) that are required to produce…

Q: When the contribution margin is not sufficient to cover fixed expenses: Multiple Choice total profit…

A: The contribution margin is calculated as difference between sales and variable costs. The excess of…

Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their…

A: Contribution margin is the amount of money left over after deducting the variable costs of creating…

Q: When npv is negative, the discount rate is greater than the actual return on investment. A.…

A: Net present value is the method used in capital budgeting to analyse various investments, projects,…

Q: Aastha wants to short 500 shares of LC at $18 a share, while Brian wants to buy 500 at the same…

A: Margin call price: It is the amount at which investors will be requested to bring back the equity to…

Q: Suppose you have a product for which you will only place a single order with your supplier. If 5)…

A: There is a situation where we can place one order only, and the expected profit will depend on…

Q: Answer the question on the basis of the following marginal utility data for products X and Y. Assume…

A: The objective of the question is to determine the quantities of products X and Y that should be…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: 3- Explain briefly demerits of Pay Back Period. One of the demerits of the pay back period method…

A: Pay back period is calculated to know the period within which the company expect to generate…

Q: Explain the payback period model and its two significant weaknesses. How does the discounted payback…

A: The payback period one of  the method of capital budgeting. It shows the required time taken to…

Q: Benefit cost analysis may be conducted with real or nominal dollars and real or nominal discount…

A: The benefit-cost analysis is the process of finding out the suitability of a project by comparing…

Q: In case of indirect quotes, if OMR is at premium against GBP then______________. a. GBP is more…

A: Indirect quote of foreign exchange is the exchange rate of domestic currency against a foreign…

Q: The maximum gain for the writer of a put is: A  the premium received   B  unlimited   C  strike…

A: Put option gives the holder the right to sell the underlying asset at a specific price and at a…

Q: Put–Call Parity - A put and a call have the same maturity and strike price. If they have the same…

A: Explanation : When share Put and Call having the same maturity & also Strike price is same then…