Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike price of $1.80. Six-month interest rates are 4.0% and the total premium on all puts is $1,200
If her total costs are $1.65 per bushel, what is her marginal change in profits if the spot price of corn drops from $1.80 to $1.75 by the time she sells her crop in 6 months?
A) $248 loss
B) $0
C) $252 gain
D) $1,500 loss
B
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A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will
a. both decrease b. both increase c. increase and remain the same, respectively d. remain the same and decrease, respectively
When a worker quits from a steel company and joins an automobile firm, what factor of mobility does this come under?
a. movement of factors of production between firms within an industry b. movement of factors of production across industries c. movement of factors of production between countries within an industry d. movement of factors of production between countries across industries
Accounting reports are designed with the information needs of the users in mind
Indicate whether the statement is true or false
Which of the following is a reason that directly relates to a healthy bottom line?
A. Increased dysfunctional turnover B. Increased employee motivation C. Halo effect in the workforce D. Decreased innovation in strategies