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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 key aspect of participative leadership is ______. decreasing repetitive work creating an inclusive environment clarifying the
oksian1 [2.3K]

A key aspect of participative leadership is: A. decreasing repetitive work.

<h3>What is participative leadership?</h3>

Participative leadership can be defined as a form of leadership and management style that involves an invitation of all of the team members to join in the decision-making processes and proferring solutions to a problem.

Basically, a fundamental characteristic and key aspect of participative leadership is that it would help to decrease repetitive work in a business organization.

Read more on leadership here: brainly.com/question/25927714

5 0
2 years ago
identify and discuss five ways that companies can work more closely to achieve efficient management of procurement system in Gha
Ilia_Sergeevich [38]

Answer: More people can come to work and do their job, but also management can work together, if they come together then they can sale more things and both of their business can go up.

Explanation: I say this because, not all companies work together because their always trying to go against each other and instead of helping one an other be great together.

8 0
3 years ago
Suppose transactions costs for a product are zero and the product can be resold. Why might the firms that sell a product charge
Dominik [7]

Answer: The correct answer is "firms offer different levels of service".

Explanation: Firms might charge different prices for the same product even when transactions costs are zero and the product can be resold if the  <u>firms offer different levels of service. </u>Because depending on the level and quality of the service offered they may charge a higher or lower price.

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4 0
3 years ago
"what is south korea's opportunity cost of producing one digital camera"
dalvyx [7]
"what is south korea's opportunity cost of producing one digital camera?"

A: 20lbs of wheat.
7 0
3 years ago
What is the expected dividend to be paid in 3 years if yesterday's dividend was $6.00, dividends are expected to grow at a const
kirill [66]

Answer:

D3 = $7.146096 rounded off to $7.15

Explanation:

The dividend growth projected for the stock expects the stock to grow at a constant rate of 6% each year over an indefinite period of time. This means that the $6 dividend paid by the stock in the current year will grow by 6% every year over its life. Thus, the expected dividend to be paid in 3 years will be calculated as follows,

Lets say that the dividend just paid is D0. Thus, the dividend to be paid in 3 years will be D3. So, D3 will be calculated as follows,

D3 = D0 * (1+g)^3

D3 = 6 * (1+0.06)^3

D3 = $7.146096 rounded off to $7.15

5 0
3 years ago
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