Answer:
Consider the following explanation.
Explanation:
The six different strategies (spreads or combinations) the investor can follow:
1)short Butterfly spread: it’s a spread with selling one call option with the lowest strike price(XL),purchasing two call options with the medium strike price(XM) and selling one call option with the highest strike price (XH) , XL<XM<XH. The strike price (XM) is generally chosen such that its equal to the stock price and options are of same maturity. The strategy shall generate the net income from the selling of calls when the stock price deviated from the strike price XM due to the high volatility. A high jump either way guarantees a net income.
2) The Straddle combination with long one put and long 1 call with the same strike price X and maturity. Its payoff depends on the deviation of the strike price if the big jump either way is expected then either the put or the call expires in the money so that the moneyness(payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call.
3)In the Strangle combination there is one long call with strike price (Xc) and one long put with strike price Xp,this combination is cheaper to generate due to purchase of OTM(out of the money) options. If the big jump either way is expected then either the put or the call expires in the money so that the moneyness (payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call. It’s easier to cover all the lesser premiums paid for the call and put and generate profits with a big move.
4) The Strip combination consists of 1 call+2 put with same exercise price and maturity. If the big jump either way is expected then either the two put or the call expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 puts is much more when the stock moves downwards as compared to when the stock moves upwards. Investor is sure of the uncertain directional big jump but thinks that the probability of downward move is greater than the upward move.
5) The Strap combination consists of 2 calls+1 put with same exercise price and maturity. If the big jump either way is expected then either the 1 put or the 2 calls expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 calls is much more when the stock moves upwards as compared to when the stock moves downwards. Investor is sure of the uncertain directional big jump but thinks that the probability of upward move is greater than the downward move.
6) Short Calendar spread: short shorter term call and at the same time short longer term call therefore the income is generated by the big move from the premiums of the calls and differences in the maturity.
Answer:
The correct answer is "$28.03".
Explanation:
The given values are:
Good purchase,
= $25
Dividend,
= $1.40
Annually earning,
= 5%
Beta coefficient,
= 1.3
Treasury bills,
= 1.4%
Now,
= 
= 
= 
(%)
hence,
The fair value will be:
= 
= 
Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.
Answer:
The correct answer is A) Fraud perpetrators.
Explanation:
Being fraud a crime it is normal to think of certain attributes that make us determine some characteristics of criminals; Preconceived are: poor education, bad manners, and bad by nature. Scholars of criminal behavior have determined certain personality characteristics of the fraud perpetrator that are far from the stereotypes cited.
A likely reason that a company would move its facility from one location to another is that they would like to access various modes of transportation, such as boats and/or railroad.
