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NemiM [27]
3 years ago
11

You just purchased a three-month BP call option (exercise price $75) and a three-month BP put option (exercise price $75). The c

all premium is $6 and the put premium is $2. Your maximum potential loss from this position is ______________. (Assume each contract is for 100 shares of stock) $200 $600 $800 unlimited
Business
1 answer:
enyata [817]3 years ago
3 0

Answer:

Correct option is C.

<u>Maximum potential loss from this position is $800</u>

Explanation:

Premium paid for call option = $6 * 100 = $600

Premium paid for put option = $2 * 100 = $200

Total cost = $600 + $200 = $800

In case the price of underlying stock falls below $75, call option will be exercised. If the price rises above $75 cal option would be, exercised. In case price stays at $75, nothing would be done. In any case the amount lost cannot exceed the cost of $800 that has been paid for the options.

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A parcel of real estate has been left to a woman through her husband's will for her use and enjoyment during her lifetime, with
wolverine [178]

Answer: A) Remainderman

Explanation:

A Remainderman may sound like something from a horror movie but it is a property law term that refers to a person that is billed to take over or inherit an estate after the LIFE ESTATE of the previous owner is terminated.

Life Estate is an agreement where a person owns a property or asset for the duration of their life but as soon as they pass on, the asset or property reverts back to the original owner of a THIRD party.

The Remainderman is the person who the property reverts to.

In the above scenario therefore, the woman is in possession of a Life Estate but the Stepson is the Remainderman.

7 0
3 years ago
Parker Corp., which operates on a calendar year, expects to sell 3,000 units in October, and expects sales to increase 10% each
pogonyaev

Answer:

total revenue = is 99300

Explanation:

given data

expects to sell in October = 3,000 units

expects sales to increase  = 10%

Sales price stay constant = $10 per unit

solution

we get revenue hereby the sum of revenue of oct + nov + dec

revenue = price × quantity    .........................1

total revenue = is 99300

8 0
2 years ago
Why was the privatization of public property considered to be a vital task after Texas entered into the Union in 1845
Lesechka [4]

The privatization of public property was a vital task because the state was "land rich but money poor" and there is need to raise funds that could be used for infrastructure purposes such as funding elementary, secondary, higher education etc

<h2>What is privatization?</h2>

Privatization refers to process where a government business, operation,  property becomes a privately-owned property, business etc

In conclusion, the privatization of public property was a vital task because the state was "land rich but money poor" and there is need to raise funds that could be used for infrastructure purposes such as funding elementary, secondary, higher education etc

Read more about Privatization

<em>brainly.com/question/1086126</em>

8 0
2 years ago
Most international business messages tend to be written in an informal, conversational manner. should be written following gener
Virty [35]

Answer:

should conform to the conventions of the receiver's country

Explanation:

The more an international business adapts its operations to the specific culture of the countries where it operates, the more likely it is that it will succeed, since customers are very sensitive to their own culture, and lacking this understanding can result in ineffective communication, and less sales.

For this reason, interantional business messages should conform to the conventions of the receiver's country: like this, people in the receiver country will not only understand the message clearly, but will also feel identified with it, raising their level of trust in the company.

6 0
3 years ago
Assume Brandon can buy either 1 DVD for $20 or 3 CDs for $25. What is the opportunity cost if he decides to buy 3 CDs? Select th
Tom [10]

Answer:

The opportunity cost of buying 3 CDs is the lost opportunity to buy 1 DVD

Explanation:

Opportunity cost is the cost of alternative forgone.It is cost of the item not purchased due the current buying decision.

It is also applicable to a business division selling to another division within the company.The cost of such internal sale is viewed as the variable cost of the product plus the contribution forgone from not selling to external party.This is most likely the case when the selling division does not have a spare capacity with which it can fulfill internal sale request.

8 0
3 years ago
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