Answer:
c. value proposition based on differentiation and a niche clientele that is willing to pay for added value.
Explanation:
Since in the question it is mentioned that XYZ company provides the premium service also they have various number of competitors that offered the customer at less prices but at the same time this company meet the customer demand having the high quality service so here the value should be proportioned that depend upon on the differentiation also it would be pay for adding the value
Hence, the option c is correct
In the article, “Visual Business Intelligence”, Stephen Few claims that visualization analysis and presentation tools are important to a business decision-maker since they _____.
a.
help justify unsound decisions to upper-level management with colorful charts and graphs
b.
help him or her to see through the errors in data collection before making an erroneous decision
c.
assist in viewing the data in even finer detail so that he or she can make the most informed decision possible
d.
allow him or her to view data as an easy to understand image that might be recognized as a pattern and solved without costly data analysis
Answer:
Explanation:
C
Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of the above accounts have a normal debit balance
Answer:
Explanation:
Cash, utilities expense, salaries expense, accounts receivable, equipment, dividends
You just won the lottery! As your prize you will receive $1,200 a month for 100 months starting today. If you can earn 8% on your money, what is this prize worth to you today
Answer: $87,380.23
Explanation: n = 100
I/Y = 8%/12
PMT = 1,200
AVP = 1,200 × (1-(1/(1+0.08/12)^100))/(0.08/12) = 1,200 × 72.816858 = 87,380.23
The prize worth to a person today is $87,380.23 approx, if the person wins a lottery.
What is the present value?A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation.
It contrasts the purchasing power of one dollar today with that of one dollar in the future, present value\ is computed by the following formula:
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\[/tex]
whereas:
A= Annuity
i= Interest rate
n= Number of periods
m= Periodicity
Computation of present value of the price:
Apply the given values in (1),
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\\text{Present Value} = $1,200\times {\dfrac{1-(1+\dfrac{0.08}{12})^(8.33 \times 12)}{\dfrac{0.08}{12}}[/tex]
Present Value = $87,380.23 approx.
Therefore, the prize worth to a person today is $87,380.23 approx.
Learn more about the present value, refer to:
https://brainly.com/question/17322936
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"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? Use the average from CAPM and Dividend Growth Model calculations."
Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
A major U.S. manufacturer of children's toys believes its main competitive advantage lies in its continuing the creation of innovative toys and games. The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs. The LAST function this firm should consider outsourcing is: Group of answer choices research and development. operations. supply-chain management. distribution.
Answer:
research and development
Explanation:
Since in the given situation, it is mentioned that the company faced the increased in the competition and also it considered an outsourcing in order to offshore the firm so that the cost can be minimized so here the last function the firm should considered outsourcing is the research and development as there is the outsourcing so there would be the research and development also it deals with innovation & introduction of new products & services
Consider the bond (newly issued, issued on Nov 2013) for a country A: Face value $10 million Coupon rate 4.3% If this bond is purchased (in April 2014) at $9.02 million, instead of $10 million, the yield would be: Group of answer choices same as 4.3% greater than 4.3% less than 4.3%
Answer: greater than 4.3%
Explanation:
Given that
Face Value = $10 million
Current Price = $9.02 million
Coupon Rate = 4.3%
Coupon Payment per annum = $10million x 4.3% = $430,000 annually
Current yield = Annual Coupon Payment ÷ Current price of the bond
Current Yield = $430,000 ÷ 9,020,000 = 0.0476 =4.76% which is greater than 4.3%
Classifying Cash Flows Identify the type of cash flow activity for each of the following events (operating, investing, or financing). The company determines net cash flow from operating activities by the indirect method: a. Net income b. Paid cash dividends c. Issued common stock d. Issued bonds e. Redeemed bonds f. Sold long-term investments g. Purchased treasury stock h. Sold equipment i. Issued preferred stock j. Purchased buildings k. Purchased patents
Answer:
a. Operating Activity
b. Financing Activity
c. Financing Activity
d. Financing Activity
e. Financing Activity
f. Investing Activity
g. Financing Activity
h. Investing Activity
i. Financing Activity
j. Investing Activity
k. Investing Activity
Explanation:
Operating Activity any activity related to a company`s buying and selling with its suppliers and customers.
Investing Activity any activity related to buying and selling assets with other parties.
Financing Activity any activity related to raising capital or debt and the repayment of that capital and returns to holders.
The Nash equilibrium of this game is for Tying-the-Knot to set alow price and Bridezilla-No-More to set alow price. True or False: Both firms would be worse off if they cooperated and set a high price for their services, instead of using the Nash equilibrium. True False Suppose that the firms play this game indefinitely. Both firms agree to cooperate in order to maintain higher profits. To deter cheating, Tying-the-Knot announces that it will play a grim strategy. Given this strategy, what will happen if Bridezilla-No-More breaks the cooperative agreement in the first period
Answer:
Tying-the-Knot and Bridezilla-No-More
1. The Nash equilibrium of this game is for Tying-the-Knot to set a low price and Bridezilla-No-More to set a low price.
True
2. Both firms would be worse off if they cooperated and set a high price for their services, instead of using the Nash equilibrium.
False
3. Given Tying-the-Knot grim strategy, if Bridezilla-No-More breaks the cooperative agreement in the first period,
there will be a permanent breakdown in cooperation between the two firms.
Explanation:
Playing the grim trigger strategy, Tying-the-Knot cooperates with Bridezilla-No-More in the first round and in the subsequent rounds as long as Bridezilla-No-More does not defect from the agreement. Once Tying-the-Knot finds that Bridezilla-No-More has betrayed the agreement in the previous game, he will then defect forever. Both firms will then lose as they cannot cooperate to achieve higher profits.
On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%.
Required:
What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction?
Answer:
$85,558.34
Explanation:
The Transaction Price will be the Present Value of the amount to be received in 5 years.
We can simply calculate the Present Value (PV) using a financial calculator as follows :
FV= - $120,000
I = 7 %
N = 5
P/YR = 1
PMT = $0
PV = ?
Entering the data as above gives a Present (PV) as $85,558.34
therefore,
Millipede will recognize an amount of sales revenue of $85,558.34
In analyzing present and future values of lump sums, the larger the interest rate and the larger the number of periods, the _________
Answer:
THE SMALLER THE PRESENT VALUE
Explanation:
The smaller is any future value.
The larger is any present value.
The smaller is any present value.
The smaller is any future value interest factor.
Let us illustrate with the following scenarios
1. 500 is to be received in 2 years. Interest rate is 10%. Present value is 413.22
2. 500 is to be received in 2 years. Interest rate is 20%. Present value is 347.22
3. 500 is to be received in 4 years. Interest rate is 10%. Present value is 341.51
It can be seen that the the larger the interest rate and the larger the number of periods
Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $29,000. The accumulated depreciation at the date of disposal was $24,000. A gain on the disposal of $2,900 was reported. What was the asset's selling price
Answer:
$7,900 = selling price
Explanation:
Giving the following information:
Original cost= $29,000
Accumulated depreciation= $24,000
Gain= $2,900
First, we will determine the book value:
Book value= original cost - accumulated depreciation
Book value= 29,000 - 24,000 = $5,000
Now, the selling price:
Gain/loss= selling price - book value
2,900= selling price - 5,000
$7,900 = selling price
Suppose a coalition of students from Lincoln High School succeeds in persuading the local government to impose a price ceiling of $11.00 on used DVDs, on the grounds that local suppliers are taking advantage of teenagers by charging exorbitant prices. a. Calculate the weekly shortage of used DVDs that will result from this policy. Instructions: Enter your response as a whole number. used DVDs. b. Calculate the new consumer surplus, the new producer surplus, and the total economic surplus lost every week as a result of the price ceiling.
Answer: Hi your question is incomplete attached below are the missing details
answer :
A) 16 used DVDs
B) i) $18
ii) $6
iii) $8
Explanation:
A) Determine the weekly shortage of used DVDs due to ceiling price = $11
shortage = Quantity demanded ( H ) - Quantity supplied ( F )
at ceiling price of $11 ; quantity demanded = 20 , Quantity supplied = 4
= 20 - 4 = 16 used DVDs
B) i) New consumer surplus = ADLK
ADLK = ∠ ABK + BKLD
= 1/2 * 4 * 1 ) + ( 15 - 11 )*4 = $18
ii) New producer surplus = DLE
DLE = 1/2 * 4 * ( 11-8 )
= $6
iii) Total economic surplus lost
ΔKJL = 1/2 ( 8 - 4 ) * ( 15 - 11 )
= $8
The premiums for 3 month call and put options on euros are listed below: Strike price Call Put $1.25 $0.06 $0.02 The interest rate in dollars is 4% per annum. (That will be 1% for a 3 month period.) What is the 3 month ahead forward rate that is consistent with put call parity
Answer:
1.2904
Explanation:
S + P = C + X/(1+r)^n
S = ?, P = Premium of put 0.02, C = Premium of call 0.06, X = Strike price (1.25), r = 4%, n = 1.25 (3/12)
S + 0.02 = 0.06 + 1.25/(1.04)^0.25
S = 0.06 + 1.2378 - 0.02
S = 1.2778
F = S(1+r)^n
F = 1.2778*(1.04)^(3/12)
F = 1.2778*1.009853
F = 1.2903901634
F = 1.2904
So, the 3 month ahead forward rate that is consistent with put call parity is 1.2904.
During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balance of Accounts Payable was $32,310, determine the account balance on February 1.
Answer:
$45,000
Explanation:
Given the above information, the account balance on February 1 is computed below;
Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account
= $59,900 + $186,500 - $201,400
= $45,000
Therefore, the account balance on February 1 is $45,000
Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through
50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the
answer to question 45, and so on:
Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
45. The average issue price per share of preferred stock must have been:
A) $20.00
B) $50.00
C) $70.00
D) $35.00
E) $45.00
46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?
A) Preferred $20,000, Common $0
B) Preferred $8,000, Common $12,000
C) Preferred $18,000, Common $2,000
D) Preferred $14,000, Common $6,000
E) Preferred $12,000, Common $8,000
47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.
The journal entry to record the exchange will cause Total Contributed Capital to:________
A) increase by $10,000
B) increase by $100,000
C) increase by $90,000
D) increase by $80,000
E) remain unchanged
48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
B) credit Common Stock Dividend Distributable, $15,000
C) credit Contributed Capital in excess of par, Common Stock, $21,000
D) credit Common Stock Dividend Distributable, $10,500
E) credit Contributed Capital in excess of par, Common Stock, $7,500
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:_________
A) debit Retained Earnings,$100,000
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
D) credit Common Stock Dividend Distributable, $100,000
E) Since this is considered a stock split, no journal entry is made
50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for
$15 per share. The journal entry required on March 1 will include:_______
A) credit Contributed Capital, Treasury Stock, $1,800
B) debit Retained Earnings for $1,800
C) debit Retained Earnings for $2,800
D) debit Contributed Capital, Treasury Stock, $2,800
E) debit Contributed Capital, Treasury Stock, $1,80040.
Answer:
Marcy Company
45. The average issue price per share of preferred stock must have been:
C) $70.00
46. The dividends paid to preferred and common stockholders in 2006 are:
B) Preferred $8,000, Common $12,000
47. The journal entry to record the exchange will cause Total Contributed Capital to:________
C) increase by $90,000
48. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
49. The entry to record this dividend will:_________
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
50. The journal entry required on March 1 will include:
Debit Cash $6,000
Credit Treasury stock $2,000
Credit Contributed Capital in excess of par value $4,000
Explanation:
a) Data and Calculations:
Preferred Stock:
6% cumulative, $20 par value, 10,000 shares authorized,
5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock:
$5 par value, 20,000 shares authorized,
10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
Average issue price per share of preferred stock = $70 ($100,000 + $250,000)/5,000
2005 2006
Total dividends declared $4,000 $20,000
Preferred dividend 6,000 6,000
Cumulative dividend -2,000 2,000
Common stock dividend $0 $12,000
Journal Entry:
Debit Building $100,000
Credit Common stock $10,000
APIC - common stock $90,000
January 1, 2005: Treasury stock $5,000 Contributed Capital in excess of par value $17,000 Cash $22,000
February 1, 2005: Cash $15,000 Treasury stock $3,000 Contributed Capital in excess of par value $12,000
March 1, 2005: Cash $6,000 Treasury stock $2,000 Contributed Capital in excess of par value $4,000
Investing activities do not include the: Multiple Choice Purchase of plant assets. Loaning of money in exchange for notes receivable. Issuance of common stock. Sale of plant assets. Sale of short-term investments other than cash equivalents.
Answer:
Issuance of common stock.
Explanation:
A not-for-profit art museum that has elected to capitalize its art collection receives a donation of a rare piece of Native-American art. The donor paid $10,000 for the piece several years ago. Today the piece has an estimated value of $50,000. What entry should the museum make upon receipt of this donation
Answer and Explanation:
No journal entry is required as the art museum has been elected so it is not capitalized also the value is increased i.e. from $10,000 to $50,000 so we should not capitalized it
So for this there is no requirement of passing the journal enry
Hence, the same is to be considered
____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics
Answer:
d) Social media monitoring
Explanation:
Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers
So, as per the given situation, it is a social media monitoring
For 2020, Vaughn Manufacturing reports beginning of the year total assets of $904000, end of the year total assets of $1130000, net sales of $1050000, and net income of $199000. The rate of return on assets for Vaughn in 2020 is 15.6%. 22.0%. 17.6%. 19.6%.
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity
Answer and Explanation:
The computation of the nominal, periodic, and effective interest rates for this investment opportunity is shown below:
The Nominal rate is 4.40%
The Periodic rate is = 4.40% ÷ 4 = 1.10%
And,
The Effective annual rate is
= (1+1.10%)^4 - 1
= 4.473%
hence, the same is relevant
Your great-great-grandmother left you her recipe book. It contains amazing, delicious cake recipes, and you are certain you can make a fortune with them if you just set up your bakery right. You are considering three possible designs for your bakery:
Design 1:
A factory in which assembly-line workers create low-cost, standardized cakes to be sold in grocery stores
Design 2:
A factory in which all cakes are created by machines; technology will enable you to shift from cake to cake as customer needs change
Design 3:
A personalized wedding cake business in which you will create custom delicacies for your clients
According to Joan Woodward, ____________ is classified as a continuous process production company.
a. Design 1.
b. Design 2.
c. Design 3.
Answer:
design 2
Explanation:
Joan Woodward conducted a study from 1954 - 1955 to determine the effect of organisation style on the success of the organisation
she grouped firms into 3 groups based on their level of technological complexity. the groups include :
1. Small Batch and Unit Production : this group meets small orders. they cater to the specific needs of customers
An example is a personalized wedding cake business in which you will create custom delicacies for clients
2. Large Batch and Mass Production : this group make large orders that do not meet the specific needs of customers. Most of the orders go into inventory.
An example is a factory in which assembly-line workers create low-cost, standardized cakes to be sold in grocery stores
3. Continuous Process Production : in this group, the entire production system is mechanized.
On April 1, 2019, Waterway Industries purchased new machinery for $480000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2021, should be
Answer:
$288,000
Explanation:
Sum-of-the-years'-digits method provide for higher depreciation to be charged early in the life of the asset with lower depreciation in the later year.
Sum of digits = 5 + 4 + 3 +2 +1 = 15
2020
Depreciation = 5 / 15 x $480000
= $160,000
2021
Depreciation = 4 / 15 x $480000
= $128,000
therefore,
Accumulated depreciation = $160,000 + $128,000 = $288,000
thus
The accumulated depreciation on this machinery at March 31, 2021, should be $288,000.
Consider the assembly line of a laptop computer. The line consists of 11 stations and operates at a cycle time of 1.50 minutes/unit. Their most error-prone operation is step 2. There is no inventory between the stations, because this is a machine-paced line. Final inspection happens at station 11.
Required:
What would be the information turnaround time for a defect made at station 2?
Answer: 13.5 minutes
Explanation:
Information turnaround time = Cycle time * Number of stations after error is made.
The most error-prone operation is step 2 so assuming an error happens there, there will be 9 more stations in the line.
Information turnaround time will therefore be:
= 1.50 * 9
= 13.5 minutes
true or false
2. Determining the producers preferences of products are
important when thinking of starting a business.
Explanation:
The answer is True!!!!!!!
If a government fixes the wage rate above the mar-
ket equilibrium rate it will lead to
(A) ex-
cess demand for labour (B) low supply of labour
(C) excess supply of labour (D) industrial strike ac-
tions
Answer:
Option B
Explanation:
Fixing the wage rate above the market equilibrium rate will disturb the demand and supply equilibrium of labor resource.
Wage rate above market will make labor as a resource costly for business and hence, there is possibility that the demand for labor will lower down. Thus, the supply of labor will get low.
Hence, option B is correct
Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $240,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Answer:
a. $120
b. 5,000 units
c. 7,000 units
Explanation:
Hi, your question is incomplete, I found the full question online and uploaded text and image below.
Workings and explanations :
Contribution margin per unit = Sales - Variable Cots
= $200 - $80
= $120
Break even (units) = Fixed Costs ÷ Contribution margin per unit
= $600,000 ÷ $120
= 5,000 units
Unit Sales to achieve a target profit = (Targeted Profit + Fixed Costs) ÷ Contribution margin per unit
= ($240,000 + $600,000) ÷ $120
= 7,000 units
Margin of Safety = Expected sales - Break even Sales
Note : There is no much details about the current sales level
FULL DETAILS OF THE QUESTION IS AS FOLLOWS :
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 200 Variable cost per unit $ 80 Total annual fixed manufacturing and operating costs $ 600,000
How might a manufacturer of automobile use a decision process to approach to better understand how consumers purchase these products?
Answer:
This is the first stage of the Consumer Decision Process in which the consumer is able to recognize what the problem or need is and subsequently, what product or kind of product would be able to meet this need. It is oftentimes recognized as the first and most crucial step in the process because if consumers do not perceive a problem or need, they generally will not move forward with considering a product purchase.
Explanation:
correct me if I'm wrong tht is correct
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $550 per month plus $104 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 12 jobs and 121 meals, but the actual activity was 7 jobs and 126 meals. The actual cost for catering supplies in December was $3,550. The spending variance for catering supplies in December would be closest to:
Answer:
$148 F
Explanation:
Calculation to determine what The spending variance for catering supplies in December would be closest to:
Flexible budget $3,698
[$550 + ($104 * 7) + ($20 * 121)]
Less Actual results $3,550
Spending variance $148 F
Therefore The spending variance for catering supplies in December would be closest to: 148 F
For most firms, the cost of capital decreases to a low point as the firm ________ debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt ________.
Answer:
increases; decreases
Explanation:
In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in
evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most firms, the cost of capital decreases to a low point as the firm increases debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt decreases
The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than financial options. True False
Answer:
False
Explanation:
The strike price is used at the time of trading of the options, while on the other hand the option that could be exercised is when take place when there is a delivery of the stock. Basically it means that the stock that can be predicted value and it is set by the seller of the contract. Also it is to be termed as the convertible bonds, but it should be more used for the option trading
Therefore the given statement is false