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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 are the different types of economic measurements used to analyze most economies
Nata [24]

Answer:

The levels of poverty.

Exchange rate.

The productivity of laborers.

National debt/The total borrowings of the government.

Inequality in Income.

Real Disposable Income

The Misery Index.

Explanation:

The above are some of the distinct types of economic measurement methods that are employed to analyze the economic growth of a nation. The higher poverty level affects the economic growth negatively. Similarly, the exchange rate, the labor productivity, the amount of national debt, income inequality, etc. are the key factors that displays the economic health of a country. It helps show how well a nation has performed in a specific duration and where they are lagging behind in comparison to other nations.

7 0
3 years ago
If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below av
denpristay [2]

Answer:

The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.

Explanation:

A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.

In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.

3 0
2 years ago
Price controls on rents are frequently implemented by governments in an effort to protect renters from high housing prices. Diff
Mamont248 [21]

The two primary varieties of price restrictions are known as price ceilings and price floors respectively.

<h3>What exactly are these pricing controls?</h3>

Price control is a technique that the government uses to guarantee that the price of a product or service on the market does not become too high or cheap.

Price controls may be broken down into two categories: price ceilings and price floors. Price floors and ceilings are used to determine the lowest and maximum amounts of a product's price, respectively. Price ceilings are used to determine the maximum amount of a product's price.

Read more about Price controls

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3 0
1 year ago
You're optimizing a client's Shopping campaign to drive online sales and are assessing the company's website. You determine that
skad [1K]

Answer: must allow shoppers to go back to their shopping cart when using their desktop computer.

Explanation: It important to use strategies that maximise the size of the mobile screens of people's phones when making a mobile website. This makes it easier for people to return to their shopping cart when they are on their desktop computer, thereby allowing them to carry on again on their desktop, to complete their purchase.

8 0
3 years ago
Ifre chapter 1, conceptual multiple
geniusboy [140]

Answer:

Explanation:

When the future revenue producing ability of the inventory is above its original cost the

companies should reports their inventory value with LCNV method.

5 0
2 years ago
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