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1 year ago

What is an option in stocks

1 answer:

6 0

A contract known as an option grants the buyer the right, but not the duty, to purchase or sell an underlying asset (such as a stock or index) at a given price on or before a particular date (listed options are all for 100 shares of the particular underlying asset).

<h3>What is an option? Explain.</h3>

An option is a contract that grants the buyer the right, but not the responsibility, to buy the underlying asset (in the case of a call) or sell it (in the case of a put) at a certain price on or before a specific date.

Options are used by people for revenue, speculation, and risk hedging.

Because they draw their value from an underlying asset, options are classified as derivatives.

A stock option contract normally entails 100 shares of the underlying stock, but other underlying assets, such as bonds, currencies, or commodities, are also acceptable.

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The beliefs and values you were raised with are part of your ____________.

Anika [276]

I am guessing culture, because your culture is your tradition and religion which are your beliefs and values.

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3 years ago

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If government cuts taxes. A. after tax income should increase shifting AD to the right to a higher equilibrium level of output B

Vera_Pavlovna [14]

Answer:

A. after tax income should increase shifting AD to the right to a higher equilibrium level of output

Explanation:

If the government reduces tax, the after tax income would increase and so woold demand. Thus, the aggregate demand curve would shift rightward to a higher equilibrium level of output.

If the government cuts taxes, after tax income should decrease shifting AD to the left to a lower equilibrium level of output

I hope my answer helps you

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2 years ago

Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.

balandron [24]

Answer:

<u>a defense attorney instead</u>

<u>Explanation:</u>

From a financial standpoint, a <u>defense attorney</u> would more likely make more money than a<u> juvenile prosecutor</u> because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.

Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.

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2 years ago

Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr

maw [93]

Answer:

AD2 and then to AD3

Explanation:

If the investment is continued to increase by federal reserve it would only be feasible when money creation decreases the interest rate.

The aggregate demand would then be expanded and the aggregate demand curve shifted to the right. The necessary increase in aggregate demand must be such that aggregate shifts in demand curve from AD1 to AD2 to AD3.

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3 years ago

Western Wear Clothing issues 1,600 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming t

Kaylis [27]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Cash Dr, (1,600 shares × $13 per share) $ 20,800

To Common Stock (1,600 shares × $ 0.01 par) $16

To Additional Paid in Capital in excess of par-Common Stock $20,784

(Being Issuance of common stock is recorded)

Therefore for recording the issuance of common stock we debited cash and credited common stock and additional Paid in Capital in excess of par common stock

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3 years ago