Derivatives can be used to hedge the risk. A person can protect himself from downside risk by entering into which of the following position?
Buying a stock and put option on that will give protection against the downside risk. If the price of the stock falls to even zero then the put option can be exercised and amount equivalent to exercise price can be recovered (against the payment of premium). If the price of the stock rises then put will simply expire worthless (against a payment of premium).
As per the behavioural theory of decision making by Herbert Simon, there are three essential stages in the act of problem solving and decision making . ...
Which of the following statement is incorrect?
Under bounded rationality, one of the limiting factors for making optimal decisions is information imperfection. What does information imperfection mean?
Which of the following gave a decision-making model that is based on situational leadership that considers three factors of decision quality, subordinat...
