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emmainna [20.7K]
4 years ago
8

A customer who is long 500 shares of xyz writes 7 calls against the position. this is an example of

Business
1 answer:
taurus [48]4 years ago
3 0

Answer: Covered Call

When a person holds a stock and writes (sells) calls on the same stock, the strategy is known as a covered call.  

A person can opt for this strategy if he has a neutral view on the stock, but wants to generate an income stream by receiving premiums by writing the call option.  

The risk involved in this strategy occurs when the stock price moves above the strike price. In this scenario, the covered call writer has to deliver the shares when the call is exercised. He doesn’t benefit from an increase in price.

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A variable annuity is a: A face amount certificate company B management company C fixed unit investment trust D participating un
ki77a [65]

Answer:

D participating unit investment trust

Explanation:

A variable annuity is a contract between you and an insurance company. It serves as an investment account that may grow on a tax-deferred basis and includes certain insurance features, such as the ability to turn your account into a stream of periodic payments. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

A variable annuity offers a range of investment options. The value of your contract will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.

8 0
3 years ago
________, which are incurred when pursuing a related-diversification strategy, are a function of the number, size, and types of
Anton [14]

coordination costs which are incurred when pursuing a related-diversification strategy, are a function of the number, size, and types of businesses that are linked to one another.

<h3>What are coordination costs?</h3>

This is the term that has to do with the type of costs that people come about through the fact that they collaborate.

Firms are made to work together so that they would be able to carry out an activity.

Read more on coordination costs here:

brainly.com/question/24940564

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5 0
2 years ago
Describe legislation passed to regulate banks​
Dima020 [189]

Answer:

add 4 to 983

Explanation:

4 to 983 to the power of 50

8 0
3 years ago
Which of the following is an advantage to purchasing a commercial property compared to a residential property?A. Business tenant
vodomira [7]

Answer: A. Business tenants are generally easier to deal with than apartment house tenants.

D. Ask each agent to fill out an evaluation.

Explanation:

Property tax is a tax that is paid by an individual to the government for having a property such a a real estate. An advantage to purchasing a commercial property compared to a residential property is that business tenants are generally easier to deal with than apartment house tenants. Typically, apartment house tenants are tougher to deal with because there are a lot of challenges or misunderstanding that one will encounter with them.

For Blake or his agent to get a feedback from the other licensees, he should ask them to fill out an evaluation. This will be vital to know how they feel and other necessary issues can also be addressed using the evaluation.

6 0
3 years ago
Though markets can provide goods that are excludable but nonrival, they do so at the price of: equity. inefficiency. inequity. e
OverLord2011 [107]

Though markets can provide goods that are excludable but nonrival, they do so at the price of <u>inefficiency </u>

Explanation:

An excludable but non-rival product is also known as 'club goods'

Unlike public goods which are accessible to everyone and have no rivals, club goods are not accessible to everyone, only to those who can pay for them. At the same time, they have no rivals in the market.

This is a clear indication of an inefficient economy because such a product means there is a monopoly operating in the market.

An example of this can be a cable operator in an area. It dominates the market and has no rivals or competitors but its service is only accessible to people who can pay for it. However, in the same area, a Free Public television channel is the opposite, having no rivals but also being accessible.



To learn more about excludable but non-rival goods Click here: brainly.com/question/25498461

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5 0
2 years ago
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