Explain how Roche could hedge its warrant exposure
What will be an ideal response?
The Bull Spread position was created by investors purchasing put options at SFr 7,000, selling call options at SFr 10,000, and taking a long-forward position in Roche's shares. This means Roche sold puts at SFr 7,000, bought call options at SFr 10,000, and was short its forward shares. One alternative for Roche to hedge its position would be to take the same position as investors (i.e., purchase put options at a SFr 7,000 strike price, sell call options with a strike price of SFr 10,000, and take long forward positions in its shares).
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A) overhead B) variable C) average D) opportunity E) total
Filter questions enable the researcher to filter out respondents who are not adequately informed
Indicate whether the statement is true or false
Which of the following is a drawback of cost-based pricing?
A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) Without a standard markup, consumers don't know when they are being overcharged.
A preexisting duty can arise from a person's job or position or it can arise out of an existing
contract. Indicate whether the statement is true or false