The answer is D.
this is because principles are the total amount of money borrowed or invested.
Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000
.
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
<h2>Goods & services is an example of "economic activity".</h2>
Explanation:
Economic activity is basically an action pertaining to production, distribution and consumption of goods.
Any activity which involves money for which we get products are called "economic activity".
Exchange of Product / services which involves money can be considered as economic activities.
Out of box information:
In the ancient days, people get product for another product and this was going on when the currency was not invented.
The word economy was coined by "Aristotle".
Answer:C
Explanation: do visualization and deep breathing
