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
vitfil [10]
3 years ago
6

An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e

qual the_______________.
[A] strike price
[B] strike price plus the premium
[C] strike price minus the premium
[D] market price of the stock when the put was exercised
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price -  Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

You might be interested in
All of the following components are commonly found in tents housing in rental housing agreements Except
Leviafan [203]
The answer is c, the type of renter Insurance must buy
6 0
3 years ago
A legal firm would be considered a
Serjik [45]
A legal firm would be considered a service company because they provide legal services to clients and persons.
4 0
3 years ago
Read 2 more answers
Which of the following statements about the theory of sustainability is true?a. Sustainability is the idea that socially respons
hammer [34]

Answer:

The correct answer is option A.

Explanation:

Sustainability can be basically defined as the ability to last constantly.

The theory of sustainability tries to describe a type of society and economy that is long lasting and can be lived on a global scale.

Sustainability in business is the proposition that if the companies act responsibly towards the environment and the society, they will be able to outperform their  peers. When they focus on the world's problems and see them as marketing opportunities they will be able to perform better than their peers.

8 0
3 years ago
Assume for a perfectly competitive firm, the market price of one box of tissues is $2. What is the marginal revenue when sales i
trapecia [35]

Answer:

The marginal revenue = $2

Explanation:

Firstly we calculate the value in dollars for the number of boxes sold

For 100 boxes, we have 100 * 2 = $200

For 200 boxes, we have 200 * 2 = $400

Mathematically, the marginal revenue = (cost of 200 boxes- cost of 100 boxes)/difference in quantity

= (400-200)/(200-100) = 200/100 = $2

Thus affirms the fact that for a perfectly competitive firm, marginal revenue MR = P (price)

8 0
3 years ago
Jeremy is working on a spreadsheet. Which part of the information processing cycle will justify Jeremy's use of the spreadsheet
Tom [10]

Answer:

A

Explanation:

if its wrong than forsure d

7 0
3 years ago
Other questions:
  • All of the following costs are likely to decrease as a result of better quality EXCEPT: a. customer dissatisfaction costs. b. in
    9·1 answer
  • If you invest P dollars and you want the investment to grow to A dollars in t years, the interest rate that must be earned if in
    13·1 answer
  • The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for
    13·1 answer
  • Identify at least one cost and one benefit of both the trustee and delegate models.
    12·1 answer
  • Aliyah purchased Verizon Communications stock in April 2015 for $48.90 per share. She sold the stock one-year later for $54.01 p
    11·1 answer
  • Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was
    8·1 answer
  • Will name brainleist and give 5 points and friend
    11·2 answers
  • When and under which Act citizen investment trust was established ?
    12·2 answers
  • When would you want to get the lowest interest rate possible?​
    5·2 answers
  • 1) Define JTA <br><br><br>please help<br>​
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!