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alex41 [277]
2 years ago
7

An investor purchases a stock for $52 and a put for $0.60 with a strike price of $50. The investor sells a call for $0.60 with a

strike price of $58. What is the maximum profit and loss for this position
Business
1 answer:
Nutka1998 [239]2 years ago
6 0

Answer:

Maximum profit = $6

Maximum loss = -$2

Explanation:

The computation of maximum profit and loss for this position is shown below:-

Maximum profit = Strike price - Purchase of stock

= $58 - $52

= $6

Maximum loss = Strike price - Purchase of stock

= $50 - $52

= - $2

Therefore for determining the maximum profit and loss for this position we simply applied the above formulas.

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For most people, the purchase of a Ford automobile would employ which type of consumer decision making?
Nostrana [21]

Answer:

Extended decision making

Explanation:

Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.

So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.

5 0
2 years ago
The operations vice president is adjusting the production quantities for the upcoming month of March for the coal company. Last
12345 [234]

Answer:

The correct answer is letter "B": Increase output and hire more workers.

Explanation:

According to the supply law, if the price increases so will the quantity supplied and if the price decreases the same will happen with the quantity supplied. We could say that the relationship between price and quantity supplied is directly proportional.

In the example, <em>as the price of coal increased so will the quantity supplied</em>. <em>If there is to be more supply the output should be higher which is likely to be interpreted in a need for more employees</em>.

6 0
3 years ago
You read in the paper that there has been a significant increase in the consumer confidence index. having taken an economics cla
lys-0071 [83]
Spending will increase.

Demand will increase.

The consumer confidence index is a measure of how "confident" the population of the United States is in the economic status of the US. Thus, both these values will increase!
5 0
3 years ago
When is competition deemed desirable in business, when is it undesirable?​
OverLord2011 [107]
Competition is also considered the basis for capitalist or free market economies.

Competition is desirable when the price charged to individuals equals the marginal cost of production to each firm. In other words, one can say sellers charge buyers a reasonable or fair price.

Competition is undesirable when it leads to a lower output and increased costs. Competition is undesirable in business because you have to prevent new innovative ideas surviving due to firms operating with high research and development costs alongside dominant advertising. In addition fewer incentives to cut costs because of a lack of competitors.



Read more: https://www.referenceforbusiness.com/encyclopedia/Clo-Con/Competition.html#ixzz7Booeb5l4
6 0
3 years ago
Job order production is also known as: Select one: a. Mass production. b. Process production. c. Unit production. d. Customized
lidiya [134]

Answer:

Option (D) is the right answer.

Explanation:

According to the question, customized production is the most appropriate answer because job order production refers to the manufacturing process which is unique & customized according to the customer's needs.

While the other options are wrong because of the following reasons:

  • Mass production can be described as a large number of production for the same product.
  • Process production can be defined as the production which takes place through a similar process for all the products.
  • Unit production can be defined as the number of production of the items.
  • Standard costing can be defined as the costing which occurs on the production of the product.

Hence the most appropriate answer is option (D).

8 0
3 years ago
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