Ask question

Ask question

All categories

3 years ago

12

Which is not a consumer's right? Select one: a. safety b. informed choice c. to purchase more than one can afford d. responsibil

ity

1 answer:

dem82 [27]3 years ago

6 0

Answer:

C is the answer

Explanation:

You might be interested in

a trader creates a long butterfly spread from options with strike prices x, y, and z, where x < y < z, and y is exactly mi

Montano1993 [528]

Answer:

<em>$1006 </em>

Explanation:

A long butterfly is created by following these steps

Long 1 call option for strike X ( highest premium say C)

Short 2 call option for Strike Y (premium =C-6.67 )

Long 1 call option for strike Z (premium = C-6.67 - 5.03 = C-11.70 where X<Y<Z

Here, Y-X = Z-Y =$11.70

<u>i) whenever the price at maturity goes below the price of x ( no call option is executed )</u>

payoff = 2*(C-6.67) -C-(C-11.7) = - 13.34 + 11.70 = - 1.64

<u>ii) when the price at maturity is between X and Y, only call with strike X is executed </u>

hence payoff = -1.64 +(P-X) where P is the Price at maturity

p - x = y-x = 11.70

hence maximum payoff = - 1.64 + 11.70 = $10.06

<u>iii) When the price is between Y and Z , only call with strike X and Y are executed.</u>

hence, payoff = -1.64 + (P-X) -2* (P-Y) = -1.64 +( 2Y - X - P) and this value decreases as P increases

the minimum payoff occurs when P=Z

So, maximum payoff = -1.64 + (Z-X) - 2*(Z-Y) = -1.64 + 23.4 - 2*11.7 = -$1.64

<u>iv) When the price at maturity is more than Z , all calls are executed</u>

hence, payoff = -1.64 +(P-X) -2* (P-Y) + (P-Z) = -1.64+(2Y-X-Z)

= -1.64+(Y-X -(Z-Y)) = -1.64+(11.7 - 11.70)

= -$1.64

the maximum payoff occurs when P=Y

considering the four options traded the maximum payoff = $10.06

<em>Finally determine the maximum net gain when 400 options are traded</em>

<em>= 10.06 * 400 / 4 </em>

<em>= 10.06 * 100 = $1006 </em>

3 0

3 years ago

Area of a rectangle is the product of its length of breadth?

kirill [66]

Answer:

Explanation:

4 0

3 years ago

Read 2 more answers

34kurt

for you is it like this?

6 0

3 years ago

g What are the causes of rising government budget deficits when expansionary fiscal policy is used during recessions

Irina18 [472]

Answer:

reduced economic activity and increased government borrowing

Explanation:

Expansionary fiscal policy increases the level of aggregate demand, through either increases in government spending or reductions in tax rates. Expansionary policy can do this by (1) increasing consumption by raising disposable income through cuts in personal income taxes or payroll taxes; (2) increasing investment spending by raising after-tax profits through cuts in business taxes; and (3) increasing government purchases through increased federal government spending on final goods and services and raising federal grants to state and local governments to increase their expenditures on final goods and services.

5 0

2 years ago

Kellyn needs to move Slide 8 of his presentation up so that it becomes Slide 6. What best describes how he can do this using the

777dan777 [17]

Answer:

The answer is "Option C".

Explanation:

In the given question, the numbering of the choices is missing, which is defined in the attached file please find it.

The slide Thumbnail implies its word used during PowerPoint presentations that denote the slide's tiny edition. It is the smaller version of a larger image that was simply a thumbnail. It has no long since digital image control thumbnails have been used, that's how much PowerPoint utilizes them.

Hold the slide until the slider is raised instead move it to sixth position to move to sixth position.
All slideshow software allows a person to click on it and drag a slide only to spot.

6 0

3 years ago