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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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What is an example of what a business would write a check for​
Helga [31]

Answer:

To pay in taxes, to purchase goods to make things if the business is a factory etc. hope this helps

Explanation:

7 0
3 years ago
What feature of heaps allows them to be efficiently implemented using a partially filled array?
oksian1 [2.3K]
The answer is "<span>Heaps are complete binary trees".</span>

In software engineering, a heap is a particular tree-based information structure that fulfills the heap property. The heap is one maximally effective execution of a dynamic information sort called a priority queues, and in reality priority queues are regularly alluded to as "heaps", regardless of how they might be implemented.
7 0
3 years ago
Beginning on January 1, 2020, 5 equal deposits are to be made in a fund. Required: Using the appropriate tables, determine the e
8090 [49]

Answer:

Explanation:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\  

FV  $200,000.00  

time 5 years

rate 0.1% = 10/100 = 0.10

200000 \div \frac{(1+0.1)^{5} -1}{0.1} = C\\  

C  $ 32,759.496  

The installment will generate 10% interest overtime and provide with a 200,000 dollar count after six years

7 0
3 years ago
An asset has an average return of 10.94 percent and a standard deviation of 20.98 percent. What range of returns should you expe
valkas [14]

If the standard deviation is 20.98%. The range you should expect to see with a 95 percent probability is: -31.02 percent to +52.9 percent.

<h3>Expected range of return </h3>

Expected range of return = 10.94 percent ± 2(20.98 percent)

Expected range of return =[10.94 percent- 2(20.98 percent)]; [10.94 percent + 2(20.98 percent)]

Expected range of return =(10.94 percent- 41.96 percent); (10.94 percent + 41.96 percent

Expected range of return = -31.02 percent to +52.9 percent

Inconclusion the range of returns is: -31.02 percent to +52.9 percent.

Learn more about expected range of return here:brainly.com/question/25821437

8 0
2 years ago
China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt forgiveness was zero in 2012 (i
Pie

Answer:

The correct asnwer is $-214 billion.

Explanation:

A surplus occurs when an account exceeds the credit after having paid all its debts and obligations.

As the example says, assuming that China’s net debt forgiveness was zero in 2012, then the net balance of China's financial account balance would be -214 billion.

This means that China would be facing a deficit.

A defit means that more money comes out of our company's account than it enters.

Which causes China to have a<u> negative balance account.</u>

4 0
3 years ago
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