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You believe the value of a stock will grow over the next 90 days. What combination of actions would make sense with this belief? A:
You believe the value of a stock will grow over the next 90 days. What combination of actions would make sense with this belief? A: Buying a call option/Writing a call option B: Buying a call option/Writing a put option C: Buying a put option/Writing a call option D: Buying a put option/Writing a put option You own 250 acres of farmland producing cotton in West Texas. It's four months until harvest, but you want to reduce your risk by locking in a contract now. Which of these would be the best option for reducing risk? A: Buying a 120-day put at the current market price B: Buying two standardized futures contracts covering 85% of your assets at a guaranteed price C. Buying a 120-day call at the current market price D: Negotiating a custom forward contract with a buyer covering all of your crop at guaranteed price You have calculated a breakeven level and a target level of units sold for a potential product release. Breakeven is 40,000 units, target level is 65,000 units, and expected demand is 60,000. Based on this analysis you will not lose money on the product reche, but you will not sell enough units to bit your profit target. What other factor shouldn't be focused on to potentially hit that profit target? A: Variable Cost per Unit B: Fixed Cost C: Sunk Costs D: Market Share
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