1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Assoli18 [71]
2 years ago
15

You are researching a stock currently priced at $35 per share. Call options are currently priced at $3.00, and puts are priced a

t $2.00. You use Black-Scholes and put-call parity to determine that calls are fairly priced, but the puts should be priced at $1.00. What would be TRUE given this information
Business
1 answer:
andre [41]2 years ago
3 0

For a profit with little risk, you should short the puts.

<h3>What does "stock" mean?</h3>
  • A stock is a colloquial phrase for any company's ownership certificates. On the other hand, a share alludes to a certain company's stock certificate.
  • You become a shareholder if you possess shares of a specific corporation.
  • There are two categories of stocks: ordinary and preferred.
<h3>A stock example is what?</h3>

Stock refers to a portion of a company's ownership. 100 shares of the Disney Corporation are an illustration of stock.

<h3>What exactly is a stock example?</h3>

Low risk investments are by definition safer than comparable ones. In comparison to options, stocks carry less risk. The right is the predetermined ability to acquire or sell an item at a predetermined price on a specific date.

learn more about stocks here

<u>brainly.com/question/1166179</u>

#SPJ4

You might be interested in
Managers are a critical part of any successful organization because​ ________.
Dmitriy789 [7]

Managers are a critical part of any successful organization because<u> "they use their skills and knowledge to move the organization forward towards established goals".</u>


Managers impact every one of the periods of present day associations. Sales Managers keep up a business constrain that business sectors merchandise. Staff Managers give associations an able and gainful workforce. Plant Managers run fabricating activities that create the garments we wear, the nourishment we eat, and the vehicles we drive.  

Basically, the part of managers is to direct the associations toward objective achievement. All associations exist for specific purposes or goals,and managers are in charge of joining and utilizing hierarchical assets to guarantee that their associations accomplish their motivations.

6 0
3 years ago
Workers who do not have the expectation of steady, full-time employment are called ________ workers.
Tems11 [23]
These workers are called contingent workers
Contingent workers are the type of workers that hired per-project basis. This make up Freelancers, consultants, or contractors.
Since technically these workers are not a part of the company, the company is not require to give benefit to them like its full-time workers.
7 0
3 years ago
The degree of operating leverage can be measured by​ ________. A. multiplying the contribution margin by sales revenue B. dividi
Varvara68 [4.7K]

Answer:

Option C is the answer

Explanation:

The degree of operating leverage is measured by dividing the contribution margin by operating income.

The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.

4 0
3 years ago
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u
jenyasd209 [6]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
3 years ago
In the Control Process, it is important to use the proper comparison method when comparing task results with its objectives and
DaniilM [7]

Answer: Personal comparison

Explanation:

When it comes to the Control Process, entities are allowed to use several comparison methods when comparing task results with objectives.

These include:

  • the Historical method where current performance is compared to past performance
  • the Relative comparison method where the organization's performance is compared against a benchmark of other organizations in the industry.
  • Engineering comparison where schedules are used to ensure that activities finish on time.

Personal comparison is not an acceptable method.

4 0
3 years ago
Other questions:
  • The Appliance Depot realizes that many of its customers purchase several appliances at one time and may not have immediate cash
    9·1 answer
  • Which of the following are considered to be product costs under absorption costing? I. Variable manufacturing overhead. II. Fixe
    14·1 answer
  • An Investment Adviser Representative has started a blog on the Internet to promote her services to interested parties. The blog
    9·1 answer
  • Suppose the price of a bag of jelly beans rises from $1.60 to $2.00, with the result that sales of jelly beans falls from 120 ba
    10·1 answer
  • Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-year life. The machine is exp
    9·1 answer
  • Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can then sell the tor
    5·1 answer
  • Why do many businesses use price competition?
    15·1 answer
  • A _______ lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of
    10·2 answers
  • A vendor raises the cost of materials you planned to order, and the increased cost will put your project over budget. Which shou
    13·1 answer
  • able below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!