Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you hold many stocks in oil producing companies. y

You hold many stocks in oil producing companies. You are afraid that the oil price...

80.2K

Verified Solution

Question

Finance

image

You hold many stocks in oil producing companies. You are afraid that the oil price will get lower and the price of the oil companies stocks will collapse. You know that when the price of oil collapses, shipping companies make huge profits (since oil is stored in their cargos, waiting for the price to increase). Under these assumptions, discuss three strategies available to you to temper your risk (i.e. to reduce your exposure to a decrease in the oil price)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

To preserve capital in a declining share market, a portfolio manager should: a. Shift funds from...

Finance
Q

Comment on the recent annoucement by the US government to recognize Jerusalem as the capital of...

Economics
Q

Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint...

Accounting
Q

negligible resistance and it is connected to a spring of spring constant 0 5 Nm...

Physics
Q

28 6 The temperature of a cavity of fixed volume is doubled Which of the...

Physics
Q

Find the area of the rectangle 4a b c X 3 A 6a b c...

Geometry
Q

Engineers must consider the breadths of human heads when designing helmets The company researchers have...

Statistics
Q

Your firm is considering a project that requires 2 000 000 of fixed assets that...

Algebra
Q

Red Stone LLC uses variable costing and absorption costing. Using the absorption costing income direct...

Accounting
Q

SAVE ANSWE Question 48 1 points Cool Merch Pty Ltd is a manufacturer of clothing...

Accounting
Q

Problem 3-12 (Algo) Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3-4] Luzadis Company...

Accounting
Q

(b) Calculate the labour price, usage, and budget variances. Labour price variance Labour quantity...

Accounting