All categories

4 years ago

Which of the following statements about moneyness is least accurate? When:____.

Business

1 answer:

jolli1 [7]4 years ago

3 0

Answer:

The answer is C.

Explanation:

Option A is correct because a call option is in the money when the price of the underlying asset(S) is greater than the exercise price (X)

Option B is correct because a call option at the money when the price of the underlying asset(S) is equal the exercise price (X)

Option V is incorrect because a put option is in the money when the price of the exercise price(X) is greater than the underlying price (S). (X -S > 0)

You might be interested in

What is the variance of returns of a portfolio that produced returns of 20%, 25%, and 30%, respectively

torisob [31]

Answer:

16.7

Explanation:

Calculation for What is the variance of returns of the portfolio

First step is to calculate the mean

Mean = (20% + 25% + 30%) / 3

Mean =75% / 3

Mean = 25%

Now let calculate the variance of returns of the portfolio

Portfolio variance of returns = {(20 − 25)^2 + (25 − 25)^2 + (30 − 25)^2} / 3

Portfolio variance of returns=25+0+25/3

Portfolio variance of returns=50/3

Portfolio variance of returns= 16.7

Therefore the variance of returns of the portfolio will be 16.7

3 0

3 years ago

Social computing increases

Tanya [424]

Answer:

Yes it does. Yes it does.

5 0

3 years ago

If the demand curve for coconut oil is expressed as Q=1200-10p+16p_p+0.2Y, where Q is the quantity of coconut oil demanded in th

lbvjy [14]

Answer:

$\frac{\Delta Q}{\Delta Y} \frac{Y}{Q}=0.2\frac{501}{1300}=0.077$

Explanation:

To find the income elasticity we first must recall the formula

$\eta_{q,y}=\frac{\Delta Q}{\Delta Y} \frac{Y}{Q}$

which is the percentage change in quantity when income increases in one percent.

From the demand curve we can find $\frac{\Delta Q}{\Delta Y}$ by taking derivative of Q with respect to Y: $\frac{\Delta Q}{\Delta Y} =0.2$

Next we need to know what is the income at the equilibrium quantity of 1300, which we can back out from the data given in the question

$Q=1200-10p+16p_p+0.2Y$

$1300=1200-10\times .50+16\times .30+0.2Y\\100+5-4.8=0.2Y\\Y=\frac{100.2}{0.2}=501$

Then

$\eta_{q,y}=\frac{\Delta Q}{\Delta Y} \frac{Y}{Q}=0.2\frac{501}{1300}=0.077$

8 0

3 years ago

What city on the kansas river is the capital of kansas

almond37 [142]

Answer:

Topeka

The City of Topeka, located 60 miles west of KC Metro area, serves as both the state capital of Kansas and the county seat of Shawnee County, Kansas. Topeka is the fifth largest city in Kansas behind Wichita, Overland Park, Kansas City, and Olathe. The land within the City covers about 62.67 square miles.

6 0

3 years ago

When the marginal cost curve lies below the average total cost curve, it is true that as output increases.

ivann1987 [24]

If the marginal cost curve lies below the average cost curve then as output increases, <u>average total cost </u><u>is </u><u>decreasing. </u>

<h3>What is marginal cost?</h3>

It shows the cost of producing an additional unit.

When this measure is decreasing, it means that every time another unit is produced, less cost is incurred. This will lead to average total cost falling because there is less cost but more output.

Find out more on marginal cost at brainly.com/question/10830860.

8 0

3 years ago