answersLogoWhite

0

What else can I help you with?

Continue Learning about Calculus

Explain the difference between a put option and a short position in a futures contract?

Well, the first difference is the root difference between a futures contract and an option contract: in a futures contract you MUST complete the sale at the end of the contract (if you didn't buy it back before the settlement date) but in an option you CAN.Once we're past that, the short position in a futures contract--the person who has the item the contract is derived from, such as a thousand bushels of wheat--is the same as the buyer of a put. Both of them have the thing now, and will transfer title to it after settlement or exercise.


What is the advantage of multiplying both sides of the equation by the same least common multiple of the denominators?

It will be easier to perform the required calculation.


What happens to the price of a put option if the stock increases?

Nothing. Once you enter into a put contract, the strike price remains the same. If the stock price goes over the strike price and stays there until expiration, you just let the put expire.


What is the difference between a forward contracts futures contracts and options?

Forwards and futures are essentially the same thing: a commitment to buy/sell at a certain date for a certain price. The difference is in futures contracts you're also committed to sell a certain quantity, whereas in a forward you're not.An options contract gives you the option, but not the obligation, to buy or sell. This is great if you're working with stocks. If you have a futures contract to buy 500 shares of Coca-Cola for $10 per share on January 15 and Coke closed at $8 on January 15, you just lost a thousand dollars. If you were long on a put with the same spread between strike and stock prices, you made $1000.Forwards and futures have a purpose in life--IF you're dealing commodities with the intention to use them. You make frozen pies. You know you need ten tons each of wheat, sugar and apples. If you have a futures contract for October delivery on all of those commodities, you know what your pies' materials value is going to be, hence you can publish a good price for your pies. But futures speculators--investors who buy futures with the intent of selling the product after delivery, or the contract to a producer (there is a secondary market in futures)--have a long and proud history of losing their asses on these, so I recommend against them as an investment vehicle.


Two lines that lie in the same plane and are always the same distance apart?

parallel lines

Related Questions

What is the aim of a payment of damages for breach of contract?

The measure of damages in a claim for breach of contract is that sum that would place the Plaintiff (the aggrieved party) in the same position as he/she/it would have been had the contract been performed by the breaching party. This is most frequently meaured in terms of money, but under certain circumstances, the remedy for breach may be "specific performance"--in other words, getting the court to order the breaching party to actually do that which he/she/it promised to do.


What happens when a contract is not performed?

When one party to a contract does not perform his duties they are in breach of contract and there are legal implications. Each party to a contract makes a promise to either perform a certain duty or pay a certain amount. If one party fails to act as promised, and the other party has fulfilled the duties under the contract, the other party is entitled to legal relief. When one party has breached the contract, the party who has performed is entitled to various remedies for the breach. * Consequential damages - This requires the breaching party to pay the non-breaching party an amount that puts the non-breaching party in the same position they would have been in if the contract was performed * Punitive damages - Courts can force the breaching party to make a payment as a punishment for the breach of contract * Liquidated damages - The parties agree, at the time they make the contract, that if one party breaches the contract, the breaching party should pay a specified sum. Thus, this is an amount written in the contract * Nominal damages - This is a minimal amount provided to the non-breaching party if that party won the case but did not financially lose much In certain situations, they can also get specific performance of the contract.


Are liquidated damages the same as Punitive damages?

No. Punitive damages are strictly that--punitive, designed to punish and make an example of the defendant to deter future similar bad conduct. Conversely, liquidated damages are set damages (i.e. per day, hour, whatever increment of time) as a penalty for non-performance. Perfect example would be a contractor who promises to finish building a house by January 30th and the contract says for each day past January 30th, the homeowner shall be entitled to liquidated damages in the amount of $100.


Should you ask for compensation in the same amount as your doctor bills?

No. There are two types of damages you can claim for. First are damages that are capable of being calculated at the time of the trial. Such as loss of earnings before the trial, medical expenses before the trial and damage to property. Second are damages which are not capable of calculation at the time of the trial and so are left to the court to quantify. Such as loss of future earnings, cost of future medical expenses and pain and suffering.


What to do when you get rear ended?

The same as any other accident. If you have damages you submit a claim. If you have no damages then there is nothing to claim.


What is the pumping action of the heart called?

atrial and ventricular systole occur at the same time


What is the same as contract?

compress


What is the difference between a void contract and a voidable contract?

A contract that is void means technically that there never was a contract. There are few times when this remedy is available including if there was a mistake, the contract was entered into under duress, or that the contract was never properly formed. A contract that is 'voidable' is when there has been a misrepresentation or a mistake that allows the innocent party to decide whether the contract will be affirmed, or 'rescinded'. Rescinding a contract has the same effect as if it were void (puts the parties back to where they were as if the contract had never been formed), but the key differences are that it is a choice whether to rescind or affirm and then sue for damages for expectation. Also, rescission is not available in some particular situations: where there are third parties involed, when the contract has already been affirmed, when it is impossible to put the parties back to where they were before the contract was formed, or where the rescission was not done in a reasonable time.


Do you agree that an agreement and a contract are one the same?

no i dont. if i agreed with you does that mean we have a contract??


What is superannuation calculation in India?

There is no specific superannuation calculation for India. The same formulas and calculations used in other countries, also works for this area.


What are Damages intended to punish a defendant and deter the defendant from engaging in the same tortuous conduct in the future?

Punitive damages are monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff.


Is the price of the phone and the price of contract exactly the same?

no it is more expensive to get a contract by alot