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mina [271]
3 years ago
10

Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. You plan to create a bull spread call (Bu

ying a call spread) by trading a total of 200 options?
Business
1 answer:
trasher [3.6K]3 years ago
5 0

Answer:

A bull spread is created when you buy at a low strike price call and sell at a high strike price call.

In this case, you would need to buy a call option with a strike price of $35 and sell a call option with a strike price of $40. The cost of the transaction would be = purchase price - selling price = ($6 x 100) - ($4 x 100) = $600 - $400 = $200

If the strike price is equal or higher than $40, you will be able to earn $500, which is the difference between the low strike price and the high strike price times 100 stocks.

So your maximum gain can be = maximum revenue - cost = $500 - $200 = $300

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A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its
natali 33 [55]

Answer: 2.4%

Explanation:

Cash dividend = $0.85

Earnings per share = $3.50

Market price per share = $35.50

The dividend yield will be calculated as:

= Cash dividends / Market price per share

= $0.85 / $35.50

= 0.024

= 2.4%

The dividend yield is 2.4%.

3 0
3 years ago
The relationship between an employer and an employee can be thought of in terms of a(n) __________, a description of what an emp
myrzilka [38]

The answer is psychological contract.

A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.

Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.

`

In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.

Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.

To know more about employer and employee relationship click here:

brainly.com/question/13400621

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8 0
2 years ago
Prove that F=Gm1m2/d2​
podryga [215]

Answer:

From the statement of Universal law of gravitation,

F ∝ m1 m2

F ∝ 1/d²

by combing above two equations we get,

F ∝ m1 m2/d²

F = G m1 m2/d²

HOPE THIS HELP!!

MARK IT AS BRAINLIEST!!!!

6 0
3 years ago
Assume the price elasticity of demand (Ed) is 0.4 for gasoline in the long run. Some argue that we need a 50% reduction in gasol
dybincka [34]

Answer:

125%

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Let x = percentage change in price

o.4 = 50 / x

x = 125

7 0
3 years ago
When economists speak of "demand" in a particular market, they refer to?
saveliy_v [14]
Demand is the quantity of a good or service for which a consumer is willing to buy and a company is willing to sell at a given price at a specific time. For the entire market, the demands for the buyers are summed to find the market demand. 
4 0
3 years ago
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