Uses of options include
Question 4 options:
Possibility of hedging
Limiting exposure to risk
Profitability
all...
Uses of options include
Question 4 options:
Possibility of hedging
Limiting exposure to risk
Profitability
all of the above are uses of options
A and C are uses, but B is not
Solutions
Expert Solution
Options are the financial instrument that are derivatives based
on the value of underlying securities. Option includ the
possibility of hedging, limiting exposure of risk and
profitability.
Why should banks be concerned about their level of
profitability and exposure to risk? Compare suncorp profitability
with peer group mainly Return on Assets and Return on Equity? How
do you see the level of suncorp bank(ausralia) profitability
compared to its peer group?
1.One advantage of hedging with options is that there is limited
down-side risk, but favorable price changes still benefit the
hedger. (True or False)
2.What happens to the intrinsic value of a call option that is
"in the money" if the price of the underlying futures contract
increases.
The intrinsic value increases.
The intrinsic value decreases.
The intrinsic value stays at zero.
Explain how options prices are derived? What are ALL the factors
that affect options prices? Include an example of options contracts
of a company and compare them with options of one competitor.
Calculations Involving a Limiting Reactant
Question 16.
This question has multiple parts. Work all the parts to
get the most points.
a. "Smelling salts," which are used to revive someone who has
fainted, typically contain ammonium carbonate,
(NH4)2CO3. Ammonium carbonate
decomposes readily to form ammonia, carbon dioxide, and water. The
strong odor of the ammonia usually restores consciousness in the
person who has fainted. The unbalanced equation is
(NH4)2CO3(s) →
NH3(g) + CO2(g) + H2O(g)
Calculate the mass of ammonia...
All of the following are reasons why a risk exposure should be
monitored more frequently EXCEPT
the risk exposure materiality is rated as high.
the underlying asset's volatility increases.
management's risk tolerance increases.
the risk exposure has increased likelihood of losses.
An organization's cost of risk from losses is
the break-even point between the costs of insurance and the
costs of uninsured losses for an organization.
the cost of all insurance and related administrative
costs.
the total of all costs...