Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1,602. The option delta is.53. How many option contracts must Lynn write to effectively hedge her portfolio?

Answers

Answer 1

Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts.

The term “portfolio” refers to any mixture of monetary belongings including shares, bonds and cash. Portfolios may be held through character buyers or managed by way of monetary specialists, hedge finances, banks and different monetary institutions. it is a normally conventional principle that a portfolio is designed in step with the investor's hazard tolerance, time body and investment goals. The economic cost of every asset can also affect the risk/praise ratio of the portfolio. when figuring out asset allocation, the intention is to maximize the expected return and minimise the threat.

Learn more about portfolio here

https://brainly.com/question/25929259

#SPJ4


Related Questions

a survey of purchasing agents shows that professional buyers believe it is important for salespeople to do all of the following except:

Answers

Buyer surveys show that purchasing buyers believe it is important for sellers to do all of the following. Remuneration to investors for their investment in the company.

Buyers and buyers consider price, quality, availability, reliability, and technical support when selecting suppliers and goods. Buyers and Buyers purchase products and services for use or resale by organizations. They evaluate suppliers, negotiate contracts, and check product quality.

Buyer or Buyer is an individual or business offering to purchase an agent or property on behalf of another party. Indentation agent or indentation agent (or company) is an alternative term for buyer.

Learn more about purchasing here

https://brainly.com/question/27975123

#SPJ4

true or false: alerts provides the monitoring of a company name, the products the company produces, and the company's trademarks, but not of competitors' brands.

Answers

The right answer to this true and false question is False.

Alerts where a user can monitor what's being said online about a particular person, topic, or company.

-Users can enter terms they want to monitor (includes: company name, products company produces, company's trademarks, and high-level employees)

-Monitor: competitor's brands, industry news topics, regulations and laws that affect the company, customer's company names

-Prioritize alerts ("company name + fraud" or "company name + scam")

-What users can decide on alert: specify the type of content they want, language, region/geography to monitor, frequency in which alerts are delivered, # of results they want, receive my email or not.

To learn more about Alerts click here:

https://brainly.com/question/14230817?referrer=searchResults

#SPJ4

a data analyst is evaluating data to determine whether it is good or bad. which qualities characterize good data? select all that apply.

Answers

1)Comprehensive. 2) Current 3) Cited are qualities that characterize good data.

What does a data analyst actually do?

A data analyst examines data to find significant customer insights and potential uses for the information. They also advise the company's management and other stakeholders of this information.

What is a good data?


Accurate means true, precise, and current. Complete: all necessary information is provided. Data is stored in a format that is appropriate and standardized when it is conformant. Information within or between systems is accurate and consistent; there are no discrepancies.

Learn more about data analyst here:
https://brainly.com/question/28893491
#SPJ4

if no variations in demand or lead time exist, the rop will equal a. the eoq. b. demand during lead time. c. safety stock. d. the service level. e. the eoq plus safety stock.

Answers

ya no se me puede pasar la hora que tengo a eesta een ede ede eque eque eque eque eque eque eque eque eque que we y el rojo no me apárese el día de la mañana pero si me lo calmo me voy yo e wew a la tarde a ir con la chica de que no tengo estoy en una moto de donde voy yo a las dos y yo voy hablar con mi tía marlén que no me voy a ir a dar la vuelta y ya le voy hacer el otra vez que no tengo nada que me diga y que si le voy

why do individuals join unions? higher wages and benefits greater job security influence on work rules and work conditions all of the above none of the above

Answers

Individuals join unions for all of the above (Option D).

What is the primary driver behind employees joining a union?

Because they are unhappy with the way their bosses treat them, workers join unions. They think that a union would make the workplace better. negatively affects how resources are allocated inside the organization.

What does a union perform?

A union is made up of two or more employees who band together to pursue issues like pay, benefits, schedules, and other working terms and circumstances.

Protecting and advancing the interests of its members at work is one of a trade union's primary goals. Most trade unions are free of any employer's influence. Trade unions make an effort, nonetheless, to establish close working partnerships with businesses.

To know more about trade unions, visit:

brainly.com/question/1108335

#SPJ4

which of the following is not a recognized source of it best practices according to itil? a. proprietary knowledge b. industry standards c. training d. auditors

Answers

Out of the choices provided above, it can be concluded to state that auditors are not a recognized source of IT practices, according to the guidelines of the ITIL. Therefore, the option D holds true.

An auditor can be referred to or considered as a professional who is responsible for checking and assessment of the accounting records and financial statements prepared by an accounting firm. An auditor verifies the correctness of the accounting records. An auditor, however, is not a qualified person to practice IT activities.

Learn more about an auditor here:

https://brainly.com/question/28457117

#SPJ4

TRUE/FALSE. whether to use a direct or an indirect strategy in delivering bad news to employees depends primarily on the anticipated reaction of the receiver.

Answers

When breaking bad news to employees, deciding whether to use a direct or indirect approach largely depends on how the recipient is expected to react. False is the answer.

Directly delivering a message of bad news.

When the audience values conciseness, the message must be brief, the message is complex and may not be easily understood, the message relates to a well-known issue or problem, or you are ending a business relationship, the direct approach is frequently used.

Indirectly communicating bad news.

You might prefer to use the indirect method if the bad news could have a significant impact on the recipient or if you don't know them well.

Know more about approach visit:

https://brainly.com/question/13443204

#SPJ4

suppose that the effective interest rate per interest period is 3.9%. describe what the annuity symbol a 18 means.

Answers

In the world of insurance, the number 18 refers to an annuity with a payout of one unit every year for 18 years.

What does "effective interest rate" mean?

The percentage of interest on a loan or financial product if compound interest builds up over the course of a year with no payments made is known as the effective Annual Equivalent Rate (AER), Effective Annual Interest Rate (EIR), or just effective rate

What is the monthly effective interest rate?

The effective interest rate is the one that takes into account the compounding times throughout a payment schedule. It is employed to compare the yearly interest on loans with various compounding periods, such as a week, month, or year. Generally speaking, the stated or nominal interest rate is lower than the real one.

To know more about interest rate visit:-

https://brainly.com/question/13324776

#SPJ4

calculate the adjusting entry to record bad debts expense assuming uncollectibles are estimated using the aging of accounts receivable method based on the percentages below. g

Answers

The percentages may be estimates primarily based on an employer's previous records of the collection.

The expected probabilities are then extended by using the whole amount of receivables in that date variety and delivered collectively to determine the quantity of horrific debt expense.

Multiply the overall for whatever period by way of a given percent deemed to be uncollectible, and sum the totals. Assuming that the Allowance for dubious debts has a credit score stability, subtract the amount of the credit balance from the amount envisioned to be uncool- flexible to get the quantity of the adjusting entry.

Increase the terrible debt price account with a debit and reduce the money owed receivable account with a credit.

Learn more about employer here: https://brainly.com/question/1190099

#SPJ4

marshall company purchases a machine for $1,040,000. the machine has an estimated residual value of $100,000. the company expects the machine to produce two million units. the machine is used to make 600,000 units during the current period. if the units-of-production method is used, the depreciation rate is:

Answers

The depreciation rate is always written in a percentage and calculated through a numeral value. Depreciation refers to the decrease in value of a asset over a period of time.

Depreciation rate: Cost of goods sold - Residual Value/ Total units             expected to be produced * Actual units produced

Depreciation rate: 1,040,000 - 100,000/ 200,000 * 600,000

= 2,820,000 or 2.82%

To learn more about depreciation rate, click here:

https://brainly.com/question/11861805?referrer=searchResults

#SPJ4

If marshall company buys a machine for $1,040,000 the machine has an expected residual value of $100,000 the company estimates the machine to generate two million units. If the unit of production method is utilized the depreciation rate would be 2.82%

The depreciation rate is calculated as follows: Cost of goods sold - Residual Value/Total projected production * Actual production

Rate of depreciation: 1 040 000 - 100,000 / 200,000 * 600 000

= 2,820,000 or 2.82%

Depreciation is the accounting term for spreading out the expense of a tangible asset over the course of its useful life. A measure of how much an asset has been used is depreciation. It allows companies to invest in assets over a specified period of time and profit from such assets.

To learn more about depreciation rate, click here:

brainly.com/question/11861805

#SPJ4

a menu item costs a manager $2.20 to produce. the manager wants to achieve a 40% food cost on the item. what should be the item's selling price?

Answers

The selling price of the item is $5.50

What is the selling price?

A buyer's cost to acquire a good or service is known as the selling price. This pricing strategy may differ based on what buyers are willing to pay, what the seller will accept, and how competitive the price is in relation to those of competing companies in the market. It is important to figure out your average selling price because it enables you to keep an eye on market trends and make predictions. It can be a great way to decide on a pricing strategy if you're a start-up manufacturer.

Given:

Cost price =  $2.20

Profit margin = 40% = 0.40

So, the selling price is calculated as:

$2.20/0.40 = $5.50

To learn more about selling price, visit:

https://brainly.com/question/28017453

#SPJ1

An employee who is hired by a business by an oral or written agreement is an agent and has been given to act on behalf of the business. a, lingering apparent authority b. valid formation c. express authority d. agency by estoppel

Answers

An employee who is hired by a business by an oral or written agreement is an agent and has been given express authority to act on behalf of the business. The Option C is correct.

What is an express authority?

In agency law, an express authority means an agent's power to act on behalf of a principal, which is expressly granted by the principal. It could be given in an agency agreement or through clear and express oral instructions.

Most time, the result of an express authority is that the conduct of an agent can legally make representations for the principal or even legally bind the principal in a contract.

Read more about express authority

brainly.com/question/15448937

#SPJ1

What if first american makes a claim against armstead for the bags, rather than making a claim against transportation management and the district of columbia?.

Answers

The defendants sought summary judgment, claiming they could not be liable against transportation management and the district of Columbia.

Why is transportation such a necessity?

It connects millions of Americans to other people, places, and opportunities, acting as a lifeline for them. In addition, it promotes the growth of prosperous neighborhoods, employment opportunities, the alleviation of traffic congestion, and a cleaner environment. The local and national economy benefit from expenditure on public transportation.

What is the main reason for traveling?

The earliest mode of transportation created in an endeavor to cross water was a boat. The first people to cross the sea are generally thought to have been those who invaded Australia between 60,000 and 40,000 years ago, though there is some evidence that sailing expeditions were made as far back as 900,000 years ago.

To know more about Transportation visit:

https://brainly.com/question/12133248

#SPJ4

a firm should invest as long as the funds are available and the expected rate of return is greater than the interest rate. true false

Answers

A firm should invest as long as the funds are available and the expected rate of return is greater than the interest rate. This statement is false.

What is risk free interest rate?

The risk-free rate of return, sometimes abbreviated to the "risk-free rate," is the rate of return on a fictitious investment with predetermined payments over a predetermined period of time that is presumed to fulfill all financial obligations.

The rate of return provided by an investment with no risk is known as the risk-free rate. The concept of the risk-free rate is somewhat speculative because every investment asset carries some element of risk, no matter how minor. It is commonly understood to refer to the interest rate on short-term government debt.

To know more about risk free interest rate, refer:

https://brainly.com/question/22428717

#SPJ4

what is the purpose of commercial loan support in a typical commercial bank? a. to create a consistent and steady stream of cash flow for loan repayment b. to provide adequate capital to run the borrowing business c. to ensure that loan terms and conditions are protected d. to control conditions

Answers

The goal of commercial loan assistance in a normal commercial bank is to give the borrowing company enough capital to operate.

What distinguishes a commercial loan from a company loan?

Although theoretically speaking the word "commercial loan" can refer to any loan given to a firm, lenders sometimes use this term to refer to larger loans given to small and large companies. Loans for small businesses are frequently for smaller sums.

Is obtaining a commercial loan simpler?

These loans are typically provided by private businesses and frequently require larger down payments. Compared to a conventional mortgage, the loan is quicker to obtain and easier to qualify for.

to know more about commercial loan visit:

https://brainly.com/question/27380105

#SPJ4

in the context of iot in the manufacturing industry, which model segments devices and equipment into hierarchical functions?

Answers

The Purdue Model for Control Hierarchy segments devices and equipment into hierarchical functions.

A hierarchical organization is an organizational structure in which every entity in the organization, except one, depends only on another entity. This arrangement is a form of hierarchy. In an organization, a hierarchy usually consists of a single power/group at the top with subsequent levels of authority below.

It is the dominant mode of organization among large organizations; Most corporations, governments, organized crime and religious enterprises are hierarchical organizations with different levels of management, power or authority. For example, a broad, high-level overview of the general organization of the Catholic Church includes the pope, then the cardinal, then the archbishop.

To know more about hierarchical here-

https://brainly.com/question/9207546

#SPJ4

to complete the project effectively and on time, rebecca and martin need to share information and closely coordinate their efforts. this is an example of .

Answers

In order to complete the task both Rebecca and Martin have to coordinate their efforts and this is example of Reciprocal task interdependence.

In order to complete any task there is a need of contribution by all the members of the group. The project should not be done by only one individual of the group instead all the members should do their part of work so that the project gets completed in time. The same happens in case of Rebecca and Martin where they both have to help and coordinate each other's work in order to complete the project on time. In the Reciprocal interdependence method all the members of the task are dependent on each others work but they coordinate with each other to complete the project or task.

Learn more about Reciprocal task interdependence at:

brainly.com/question/15563791

#SPJ4

what was the main difference between the two phases in terms of the users’ roles? what was the role of the plant manager?

Answers

A transformational step for Alstom: of the entirety of the acquisition of Bombardier Transportation | Alstom. At Alstom, we innovate no longer handiest to deliver operationally nowadays but to transform mobility at big, via pioneering smarter and greener mobility answers for all.

Bombardier Inc. is a Canadian manufacturer of aircraft, rail transportation gadgets and structures, and motorized customer products. The enterprise followed its gift call in 1978 and entered the aerospace field in 1986. The headquarters are in Montreal.

The Bombardier CSeries became an excellent aircraft, however, it did not promote so nicely. sales expanded drastically as soon as Airbus took control of the program. Airbus makes this acquisition and has the aircraft been so a success after rebranding to Airbus.

Learn more about Bombardier here:brainly.com/question/13792145

#SPJ4

does the ccr report provide relevant information that enables their various constituents to evaluate the overall performance and financial conditions

Answers

RBI will have constituted a central Knowledge base on Large Credits (CRILC) to capture, store, as well as publish information across all credit history' credit exposures. Organizations Institutions have always been expected to submit research results to CRILC.

The RBI has required all of its regulated entities to provide financial info to all four CICs individually. CICs provide value-added services such as credit reporting as well as statistics to member credit institutions including borrowers for economic uses, based on their unique availability of credit data.

CCR would be a reporting system that requires credit issuers, including such banks, to submit their customers' credit records. This enables financial organizations to make better lending decisions. Credit companies disclose both positive as well as negative credit data under Integrated Credit Reporting.

To know more Organizations here-

https://brainly.com/question/14725056

#SPJ4

redmont company's gross salaries and wages are $26,000, and it withholds $3,900 for income taxes and $1,989 for fica taxes, the journal entry to record the employees' pay should include a:

Answers

According to the condition, the journal entry to record the employees' pay should include a credit to Salaries and Wages Payable for $20,111. Thus, the correct option is (D).

A journal entry is the act of maintaining or producing records of any economic or non-economic transaction.

A company's debit and credit balances are displayed together with a listing of transactions in an accounting journal. The journal entry can be made up of many records, each of which is either a debit or a credit.

A journal entry is often recorded in the main ledger; however, it may also be entered in a subsidiary ledger before being summarised and rolled forward into the general ledger.

Here,

Gross salaries and wages = $26000

Withhold amount = $3900

Income taxes = $1989

Calculate the total withhold amount as follows:

Total withhold amount = $3900 + $1989

= $5889

Calculate the salaries and wages payable amount as follows:

Amount of salaries and wages payable = $26000 - $5889

= $20111

Therefore, the correct option is (D).

To know more about the journal entry, visit:

https://brainly.com/question/33762471

#SPJ12

This is an incomplete question, the complete question is:

Redmont company's gross salaries and wages are $26,000, and it withholds $3,900 for income taxes and $1,989 for fica taxes, the journal entry to record the employees' pay should include a?

Multiple Choice

A. debit to Salaries and Wages Expenses for $20,111

B. debit to Salaries and Wages Payable for $20,111.

C. credit to Salaries and Wages Payable for $26000

D. credit to Salaries and Wages Payable for $20,111.

A crawling peg exchange rate policy is one that​ _______. A crawling peg exchange rate is achieved​ _______.

Answers

A crawling peg exchange rate policy is one that follows a path determined by a decision of the government or the central bank  A crawling peg exchange rate is achieved​ by central bank intervention in the foreign exchange market.

What is a crawling peg exchange rate policy?

A crawling peg  can be described as the system of exchange rate adjustments which can be used by the country whereby the currency with a fixed exchange rate is allowed to fluctuate within a band of rates hoever the par value of the stated currency as well as the band of rates can undergo some adjusted frequently, mostly in times of high exchange rate volatility.

In conclusion, the country de factopegs its currency  and thisd is usually done with fixed rate to another currency or a basket of currencies,  and in this case the basket is formed from the currencies of major trading  which reflect the geographical distribution of trade, services, or capital flows.

Learn more about  exchange rate at:

https://brainly.com/question/2202418

#SPJ1

There are four possible global marketing strategies, one of which is a mixed strategy, which involves offering ________.
A) a uniform product and a customized message
B) a customized pricing scheme and a uniform message
C) a uniform product and a uniform message
D) a customized product and a customized message
E) a uniform product and a uniform pricing scheme

Answers

There are four possible global marketing strategies, one of which is a mixed strategy, which involves offering a uniform product and a customized message.

The correct option is A.

A company's marketing initiatives in various areas are coordinated as part of a global marketing strategy (GMS), which includes markets from several different regions of the world. While a GMS need not be applicable in every country, it should in at least a few.

Product, service, and pricing are the strategies. The mixed marketing strategy is a group of strategic marketing tools that may be managed and employed by a company to elicit a certain response from its target market. It includes every move a company may make to influence the demand for its products among consumers.

To learn more about global marketing strategies, refer

https://brainly.com/question/29376574

#SPJ4

Which of the following is an example of a good practice when developing a bad-news message?
Select one:
a.
Dan, a manager at Oak Inc., avoids providing reasons to support the refusal in his bad-news message.
0
b.
Aaron, a manager at Calibon Inc., avoids using "company policy" as a reason in his bad-news message.
0
c.
Meena, a manager at WillWare Inc., avoids emphasizing how her audience will benefit from a decision.
0
d.
Rachel, a manager at TechnoGram Inc., avoids using the inductive approach when developing a bad-news message.
0
0
d. A bad-news statement should be written using passive voice.

Answers

Good practice when developing a bad-news message is .Aaron, a manager at Calibon Inc., refrains from citing "business policy" as justification for the bad news. Option B is correct

There are two ways to convey terrible news: either directly express the unpleasant news or soften it by providing an explanation beforehand. Be forthright if the unpleasant news is mild or if your reader anticipates it. Reduce the likelihood of misunderstanding or back-and-forth communication by being clear and succinct. Assist the recipient in comprehending and accepting the news. Keep the receiver in mind while maintaining your trust and respect for the company or organization. Avoid being held accountable or making a false admission of guilt or responsibility.

Learn more about bad-news message visit https://brainly.com/question/5478532

#SPJ4

Programs designed to foster ethical behavior are more controversial today because unethical and illegal business conduct continues to occur, even in organizations that have implemented the programs.
a. True
b. False
True

Answers

Programs designed to foster ethical behavior are more controversial today because unethical and illegal business conduct continues to occur, even in organizations that have implemented the programs. True

In computing, a program is a selected set of ordered operations for a computer to carry out. the modern computer that John von Neumann outlined in 1945, this system incorporates a one-at-a-time sequence of instructions that the pc follows. usually, the program is put into a storage region available to the laptop. The purpose of the software is to remedy a hassle or to pursue a hobby via innovative expression. In essence, why the programmer decided to create this software. as an example, “the cause of this software is to encourage others to recycle."

Programming is the process of making a hard and fast of commands that inform a pc how to perform an assignment. Programming may be carried out with the use of diffusion of laptop programming languages, inclusive of JavaScript, Python, and C++.

Learn more about Programs  here: brainly.com/question/23275071

#SPJ4

not every decision consumers make will turn out to be perfect because consumers can never have all thethey might need to make the perfect decision.

Answers

Because of their financial limitations, consumers must carefully consider their options because they cannot fulfill all of their preferences.

What does the consumer describe?

People who purchase goods with their own purposes and utilize or consume them are known as consumers.. Although a customer cannot sell the good, product, or service, he or shemay utilise it to carry out self-employment and support himself or herself. Describe a consumer. The person who really uses any services or goods is known as the consumer.

What does a consumer look like?

Consumers are any person or entity who uses a goods and services in its entirety. Here are several examples: A customer who pays a hairstylist to cut and style their hair. a business that purchases printers for businesses.

To know more about consumer visit:

https://brainly.com/question/28273601

#SPJ4

you are the banquet sous chef at a mid-sized hotel prepping for a big event. the food is delivered to the line by a banquet steward, the desserts are delivered by the pastry cook, and the banquet line is staffed with each person adding an element to the plate. this separation of jobs is an example of . a. teamwork b. work specialization c. organizational structure d. scheduled events

Answers

Being a banquet sous chef, this separation of jobs is an example of option c. organizational structure.

An organizational structure defines however job titles, roles, and responsibilities are assigned at intervals an organization. It helps confirm who reports to whom, and who makes choices concerning what. Startups typically have a matrix structure structure, with completely different departments operating along on comes.

Organizational structure affects organizational action and provides the muse on that normal operative procedures and routines rest. It does the separation of jobs and work towards the accomplishment of organizational aims.

To learn more about Organizational structure here

brainly.com/question/23967568

#SPJ4

Which of the following is a good piece of advice to give to individuals who have multiple bosses in a matrix structured organization?
a) Make sure all managers are familiar with your overall workload.
b) Keep conflicts you are experiencing to yourself.
c) Avoid situations where you have multiple managers as they produce more conflict than benefits.
d) Set a schedule so that you work with one manager on certain days and the other manager on the other days.

Answers

Power disputes inside matrix groups can be quite violent. A type of organizational structure called a matrix contains numerous reporting managers. Power struggles among the leaders are an issue in matrix organizations.

What are the advantages of reporting to multiple managers in a matrix structure?

Dual reporting is used to improve resource allocation among functions and speed up work for the organization as a whole.

What are the advantages of a centralized organizational structure?

centralized organizational frameworks' benefits. Fixes accountability through strict top-down supervision. -Removes goal conflict between parties with different viewpoints or interests. -Enables strong leadership and rapid decision-making in emergency situations.

To know more about organizations visit:-

https://brainly.com/question/13278945

#SPJ4

The horizontal axis on the aggregate demand-aggregate supply model measuresa. the level of employment.b. the price level.c. the price of the specific product produced.d. the level of total output.

Answers

The horizontal axis on the aggregate demand-aggregate supply model measures the level of total output.

In contrast, the horizontal axis of the combination calls for and combination deliver diagram measures GDP, that is the sum of all of the very last items and offerings produced withinside the financial system, now no longer the amount in a particular market.

A horizontal combination deliver curve method manufacturers will now no longer deliver items at a decrease charge anymore. Any authority's stimulus or increase withinside the financial system will simply growth output. This method the financial system has plenty of efficient potential left unutilized.

Learn more about aggregate demand here:

https://brainly.com/question/1490249

#SPJ4

Nathan deposited $4,500 into a savings account that pays 8% annual interest, compounded quarterly. Which of the following is the best approximation of the interest will he earn in one year if he does not make any further deposits or withdrawals from this account?
360
371
752
1083
1445

Answers

Nathan deposited $4,500 into a savings account . The interest he earn in 1 year is 360

Calculating the problem:

Compound interest is calculated on the principal amount, as well as on any interest already earned.

P = Principal, r = Interest rate (in %), n = number of times per year, t = number of years.

Simple interest = Principal Amount x Interest Rate x Time

Simple interest = 4500 x 8/100 x 1

Simple interest = 45 x 8

Simple interest = 360

How can I make money with compound interest?

Compound interest is calculated by multiplying the initial principal amount by 1 and adding the annual interest rate minus the number of compounding periods. After that, the total amount of the first loan is subtracted from the resulting value.Compound interest is adding interest to the principal of a loan or deposit, i.e. principal plus interest.

Learn more about compound interest:

brainly.com/question/28020457

#SPJ4

If you are naturally short the position on an asset and you enter into a long forward position for that asset (same dollar amounts), then the payoff diagram for the combined postions would look like __________________. Group of answer choices
a option payoff.
a put option payoff.
a call option payoff.
a flat line since the losses in the natural postion and the forward would offset making the payoff the same in all possible prices.
a line with a 45 degree slope since the losses in the natural postion and the forward would offset .

Answers

If you are naturally short position on asset and you enter into long forward position for that asset, then payoff diagram for combined positions would look like put option payoff.

What is a put option?

Various underlying assets, such as equities, currencies, bonds, commodities, futures, and indices, are used as the basis for put options trading. The difference between a call option and a put option is that a call option grants the holder the right to purchase the underlying security at a stated price on or before the option contract's expiration date. As the price of the underlying stock or investment declines, a put option gains in worth. As the price of the underlying stock rises, a put option, on the other hand, becomes less valuable. As a result, they are frequently applied for hedging purposes or to make predictions about downward market behavior. As the price of the underlying stock or investment declines, a put option gains in worth.

To learn more about put option, visit:

https://brainly.com/question/28284085

#SPJ4

Other Questions
this explanation of mental illness is seen as being rooted in an individual social experience, including his or her community life and interpersonal relationships what advice would you share with someone who is thinking of enrolling in the project management course 3. Using the sources given, identify the electric charge in this atom. A. -4B. 0C. +4D. +1 you need to send an informational report to your supervisor updating him on the status of your consulting project. which report format would be most appropriate in this situation? letter format formal report manuscript format e-mail or memo format item10 item 10 the simple deposit expansion multiplier is really too simple for understanding the link between changes in a central bank's balance sheet and the quantity of money in the economy because it a manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit. this is a(n) strategy. a. horizontal complementary b. network c. vertical complementary d. uncertainty reduction The dinner bill comes to $30, and you want to leave a 20% tip. What is the total cost of the bill? examples of health and safety plan in health and social care setting? 11. explain what probably caused the increase in the pecentage of white rabbits. interpreting observations the designation for the renal arrangement of structures that facilitates the movement of solutes between blood vessels is called the three months ago the price of a good was $4 and the quantity supplied was 200 units today the price is $6 and the quantity supplied is 400 units did the quantity supplied rise because the price increased or did the prixe rised because the quantity increased If a baby is born prematurely before type II cells produce sufficient pulmonary surfactant, which of the following might you expect? a. difficulty expressing fluid b. difficulty inflating the lungs c. difficulty with pulmonary capillary flow d. no difficulty as type I cells can provide enough surfactant for normal breathing What is the measure of angle l in parallelogram lmno? 20 30 40 50 the initial molarity of the cu2 and zn2 solution used in the setup of the electrochemical cell was 1 m. explain why the voltage was not equal to the standard cell potential for the cu/zn redox reaction at all times during the experiment. The process of two species changing genetically in response to long-term interactions with each other is. A current-carrying ohmic metal wire has a cross sectional area that gradually becomes smaller from one end of the wire to the other. The current has the same value for each section of the wire, so charge does not accumulate at any one point. How does the resistance per unit length vary along the wire as the area becomes smaller?. _____ is the physical positioning or geographic site of facilities and must be determined by the needs and requirements of an organization.a. Layoutb. Locationc. Margind. Design a patient is visiting the clinic for an evaluation of a swollen, painful joint. the nurse notices that the joint above his ring on the left hand is swollen and that he is unable to remove his wedding ring. this joint is called What principle weaknesses in the Articles of Confederation led to the creation of the Constitution?ResponsesThe limited powers granted to the national government by the Articles of Confederation made collecting tax money, passing and enforcing laws, and regulating trade either difficult or impossible, so major changes were necessary.The limited powers granted to the national government by the Articles of Confederation made collecting tax money, passing and enforcing laws, and regulating trade either difficult or impossible, so major changes were necessary.The laws passed by the national government under the Articles of Confederation taxed Americans heavily, which angered those who had never wanted to break from Britain, so new laws had to be written.The laws passed by the national government under the Articles of Confederation taxed Americans heavily, which angered those who had never wanted to break from Britain, so new laws had to be written.The court system established by the Articles of Confederation did not give any other branch of government the ability to check the power of the judicial branch, and people soon realized that the balance of power needed to be restored.The court system established by the Articles of Confederation did not give any other branch of government the ability to check the power of the judicial branch, and people soon realized that the balance of power needed to be restored.The federal system set up by the Articles of Confederation meant that the national government was supreme to the individual state governments, and Americans worried that the country was too much like England.The federal system set up by the Articles of Confederation meant that the national government was supreme to the individual state governments, and Americans worried that the country was too much like England. during a chest assessment of a client with idiopathic pulmonary fibrosis, the nurse hears bilateral short, discontinuous, high-pitched sounds in the lower lung lobes. the sounds are similar to hair rolled between the fingers just behind the ear. which respiratory disorder may also manifest these sounds as a pathophysiological sign?