A Fund Manager Plans to Purchase 100 000 Shares in BHP

question 25

Multiple Choice

A fund manager plans to purchase 100 000 shares in BHP Billiton next month.Which of the following would be most suitable to hedge the risk of a price rise?

• A)Long calls
• B)Short calls
• C)Long puts
• D)Short puts
• E)Short futures

Recognize how a process cost system functions and the role of a production cost report.

Apply cost accounting principles in JIT and traditional process costing environments.

Understand the concept of equivalent units in process cost accounting.

Compute costs and equivalent units in various process costing scenarios, and prepare relevant journal entries.

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Definitions:

Certificates of Deposit

Interest-bearing bank deposits with a fixed maturity date, penalty for early withdrawal, and are insured.

Proceeds

Refers to the money or other benefits received from a transaction or event.

180 Days

A time period equivalent to roughly six months, often referenced in the context of deadlines or durations for specific actions or conditions.

Debtor

An individual or entity that owes money to another individual or entity, known as the creditor.