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
dybincka [34]
3 years ago
14

Suppose the price of a share of IBM stock is $200. An April call option on IBM stock has a premium of $5 and an exercise price o

f $200. Ignoring commissions, the holder of the call option will earn a profit if the price of the share:______ a. increases to $204 b. increases to $206 c. decreases to $190 d. decreases to $196
Business
1 answer:
SCORPION-xisa [38]3 years ago
5 0

Answer:

b. increases to $206

Explanation:

Based on the above information given the holder of the call option will earn a profit if the price of the share increase to 206 because

the price of the stock have to increase to above $205 breakeven which is ($200+$5) in order for the option holder to earn a profit or make a gain.

Hence:

$200 + $5

= $205 (breakeven)

Therefore the holder of the call option will earn a profit if the price of the share increases to $206

You might be interested in
Justin has visited ESPN.com several times within in the last hour and almost daily within the last 3 months. In terms of countin
Kitty [74]

Answer:C. If Justin accesses ESPN from a different computer, he will not be counted as a new visitor

Explanation: internet connectivity is recognised through the use of the IP(INTERNET PROTOCOL) ADDRESS.

The internet protocol number is essentially recognised and through it a particular connection is recognised, every connection has a unique internet protocol number, so it Justin connects with ESPN using another computer system he will be recognised as a new user as he is connected through another internet protocol number or address.

8 0
3 years ago
HELP
stepladder [879]

Answer:

What is the article tho? U can take a picture of the article and send it here so I can try and help you

5 0
3 years ago
What is the typical relationship between satisfaction and loyalty?
ra1l [238]

The typical relationship between satisfaction and loyalty is Satisfaction determines loyalty.

<h3>How are satisfaction and loyalty related?</h3>

In the business world, loyalty is dependent on satisfaction because the level of satisfaction that a consumer gets will determine if they will be loyal to a brand.

This is why companies place a huge premium on pleasing their customers to ensure that they are loyal to the brand.

Find out more on loyalty in business at brainly.com/question/26372157.

#SPJ12

5 0
2 years ago
When or how does a contract become a legal document and is binding on all parties involved?
mr_godi [17]
For a contract to be legally binding and enforceable, consideration must be exchanged. A legally enforceable contract can either be written or oral. However, depending on the nature of the transaction, some contracts might need to be written down to be enforceable. Hope this helps
7 0
4 years ago
Which sentence is punctuated correctly?
Alchen [17]

Answer:

im pretty surre its b(mb answer got deleted)

Explanation:

4 0
3 years ago
Other questions:
  • T/F BI represents a bold new paradigm in which the company's business strategy must be aligned to its business intelligence anal
    9·1 answer
  • Who Done It Mystery Theater sells tickets for dinner and a show for $ 40 each. The cost of providing dinner is $ 22 per ticket a
    11·1 answer
  • When a company buys out all of its competitors to be a monopoly, that company is practicing ______________________________ integ
    15·1 answer
  • Drexel brothers is recruiting recent graduates with a physics or chemistry degree because of their problem-solving skills. the t
    5·1 answer
  • This is an organization of workers that negotiates with employers for better pay
    6·1 answer
  • Yittercorp regularly trades in securities on a national exchange. The company is a widely-held corporation with 600 shareholders
    13·2 answers
  • Why do firms need objectives <br>in a company ​
    15·1 answer
  • A collection of related web pages for one individual or organization is what?​
    14·1 answer
  • Some employees at a clothing manufacturer investigate pay rates on Salary and learn that the company has been paying them signif
    13·1 answer
  • Which of the following best describes a typical liberal arts college?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!