1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
3 years ago
12

Which of the following is true for American options? A. Put-call parity provides an upper and a lower bound for the difference b

etween call and put prices B. Put call parity provides an upper bound but no lower bound for the difference between call and put prices C. Put call parity provides a lower bound but no upper bound for the difference between call and put prices D. There are no put-call parity results
Business
1 answer:
velikii [3]3 years ago
4 0

The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices

Explanation:

According to the Put-call parity concept when we hold the  short European put and long European call of similar class the return delivered is same as  holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option

In financial management  put–call parity concept is used to define the  relationship that exist  between the price of a European call option and European put option, and both of them have identical strike price and expiry

The formula used for calculating  put call parity is

c + k = f +p

where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)

You might be interested in
Will the current market situation cause the price to go up, go down, or stay the same?
dusya [7]

Because Demand is up and supply is down companies are going to start demanding a higher price for their product since there are less on the market

5 0
3 years ago
A step out is a pricing practice in which a firm:
Katen [24]
I would say the answer is D
3 0
3 years ago
If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journal
Paraphin [41]

Answer:

(C) Debit Cash, credit Unearned Revenue.

Explanation:

The journal entry is shown below:

Cash A/c Dr $2,000,000

   To Unearned revenue A/c $2,000,000

(Being the receipt of cash is recorded)

Since the cash is received so we debited the cash account as it increases the current assets and credited the unearned revenue account as it is a current liability account so the same is to be credited

3 0
2 years ago
Why is VisionSpring, an organization devoted to the problem of poor eyesight in the developing world, classified as a hybrid mod
JulsSmile [24]

VisionSpring can be classified as a hybrid model of social entrepreneurship since it is devoted to the problem of poor eyesight in the developing world which is a social issue.

It should be noted that social entrepreneurship mixes economic logic with social logic.

Hybrid organizations are the enterprises that design the business models in order to alleviate a particular environmental or social issue. Since VisionSpring is devoted to the problem of poor eyesight in the developing world, it's a hybrid organization.

Learn more about entrepreneurship on:

brainly.com/question/13628349

4 0
2 years ago
You are the manager of two employees who have repeatedly displayed hostility toward a new employee. You decide to confront these
lozanna [386]

Answer: a. Gather all the information

d. Be patient with the reaction

Explanation:

It is very important that before the conversation begins, that you have all the relevant information you will need to find out why they are so hostile to the new employee to avoid judging them prematurely and therefore putting them on the defensive which will not do well for the progress of the conversation. It will also help you detect any lies that they may have.

When the conversation is also going on along, let them explain themselves and be very patient with them as they do so. This way you will listen to respond not listen to react. This way you can hear their side of the story before making an informed decision.

7 0
3 years ago
Other questions:
  • As a college senior, mason researched many companies before deciding on those he wanted to apply to. he searched particularly fo
    12·1 answer
  • In general, education is correlated to income
    15·2 answers
  • Equilibrium occurs when supply and demand coordinate to
    15·2 answers
  • According to Michael Porter, a firm’s _____ is composed of primary and secondary support activities that can lead to competitive
    6·1 answer
  • How can choosing the right institution help you manage money effectively?
    11·1 answer
  • When the effective-interest method of bond discount amortization is used,
    7·1 answer
  • In a free-market economy, a product which entails a positive externality will be
    9·1 answer
  • Whats Your Favorate View!<br><br><br><br> 2: whats your favorate exercize!
    12·1 answer
  • You pay $5,500 per year for insurance on your building. Fire damage caused $15,000 in repairs. The insurance company paid for th
    9·1 answer
  • If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!