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Put Option
This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stock options used as incentive compensation for key managers. If the right is not exercised within the specified time period it expires and the holder forfeits the money. Instead of exercising options, most investors prefer to purchase and sell them in the open market before expiration cashing in on rise in trading value. The most interesting features of trading in options are the amount of leverage option buyers enjoy. Buyers put up relatively small amount of money to handle a largest amount of common shares potentially leveraging sizable profits.
Suppose the government wants to limit imports of a certain good. Is it preferable to use an import quota or a tariff? Why? Modification in domestic consumer and producer surp
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Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.
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A developer has purchased a commercial office site in Melbourne and wishes to develop a building which will be sold to an institutional owner before completion of the building.
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