Because since the seller has no control over the market price of a product. It requires an element of monopoly to allow him influence price
1. What determines the degree of specialization within an organization? The organizational structure of the company determines the degree of specialization within an organization. Dependent on how the organization is broken up into categories allows the organization to figure out how they are able to control and break down their organizations speciality.
2. What three steps are involved in delegation? The three steps involved in delegation include: Assigning responsibility, granting authority and creating accountability. Assigning responsibility refers to giving those who are able to perform a task the duty to perform it. Granting authority is giving someone authority to make a power decision in a given situation to complete the task. Creating accountability refers to making sure an employee knows they are to finish the task and needs to be successful in doing so.
3. How does a firm's top management influence its degree of centralization? Centralization refers to the control or lack there of under different authority within an organization. If the firms top management is strict on their structure the organization will probably be on a tight chain when it comes to who has authority. Likewise, if the firm’s top management was more laid back, they would likely give more people authority to make decisions.
4. Contrast line-and-staff and matrix forms of organizational structure? Line and staff structures within an organization refers to the many different types of functions within an organization. A matrix form refers to transformation within a category that movies items into their set, special properties.
Answer:
-$11
Explanation:
Covered Call involves Buy stocks and Sell call options
Earning $2.89 by selling call. So, at stock price of $27, the payoff from options is $2.89 per option
Options Profits = $2.89 * 100
Options Profits = $289
Profit of stock = ($27 - $30) * 100
Profit of stock = -$300
Investor Net Profit = Profit of stock + Options Profits
Investor Net Profit = -$300 + $289
Investor Net Profit = -$11
