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Helga [31]
3 years ago
13

A client has an options account that is qualified to buy options and sell covered calls. The client calls his representative, te

lling him that he wants to sell naked calls in the account. Which statement is TRUE about this?
A. The representative can do this without taking any further action
B. The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction
C. The "Options Disclosure Document" must be provided before executing the transaction
D. The representative must open a separate options account for the customer and segregate the resulting naked options positions
Business
1 answer:
eduard3 years ago
6 0

Answer:

The correct answer is letter "B": The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction.

Explanation:

A naked call is a type of strategy options traders use when writing a call option without owning the underlying assets. For this to be possible, the trader must sign an options agreement and the Registered Options Principal (ROP) must approve the account so the trader can write naked options.  

Before proceeding the "<em>Special Statement for Uncovered Options Writers</em>" must be provided.

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Southwest Airlines (SWA) has enjoyed a sustained competitive advantage, allowing it to outperform its competitors over several d
larisa [96]

Answer:

resource immobility

Explanation:

"Resource Immobility" refers to<em> the ability of a company to enjoy a comparative advantage of its resources because other companies cannot easily copy their strategies and resources. </em>

So, in the situation above, the Southwest Airlines' (SWA) <u>offerings</u> (strategy) are <em>imperfectly imitable</em> by Continental and Delta. This makes the offerings by SWA valuable to the company. This has given the company a sustained competitive advantage over several decades since the other companies have a hard time copying it.

In this kind of scenario, the strategies and resources that are hard to imitate are often rare and costs a lot to organize.

5 0
3 years ago
Omaha Beef Co. purchased a delivery truck for $50,000. The residual value at the end of an estimated eight-year service life is
kati45 [8]

Answer:

2500

Explanation:

First depreciate for 6 years using regular method: (Cost - Salvage Value)/Initial Useful life

(50,000-10,000)/8 = 5000 <- this is annual depreciation

For 6 years, $30,000 accumulated depreciation

Now to calculate change in useful life, you do (Cost - Accumulated Depreciation - Salvage Value)/Remaining Useful life

Remaining Useful life = 10-6 = 4

(50,000-30,000-10,000)/4 = 2500

8 0
3 years ago
After putting her 1 year old boy down for a nap, a mother failed to find one of the larger beads she used to make custom jewelry
notsponge [240]
The bead may have been swallowed by the little boy being that infants tend to put anything in their mouth at that age, including objects. Anatomically you would expect it to be found in his digestive system gastrointestinal tract.

please vote my answer brainliest. thanks!
4 0
4 years ago
Does drinking coffee decrease the chances of an alcohol overdose
svlad2 [7]
<span>Drinking coffee DO NOT decrease the chances of an alcohol overdose. Only the passage of time can decrease the overdose. The human body cannot take up a high percent of alcohol that is why most people who get drunk by alcohol ended up either vomiting or passing out. Alcohol dampens the nerves that regulates involuntary action such as gag reflex and breathing. There is danger in vomiting since the person can be choked which lead to asphyxiation to a person who is unconscious and could result to death. When a person passes out, it’s BAC or blood alcohol concentration rises. Even if the person stops drinking, alcohol in the system continues to circulate in the stomach and in the intestine that is why it is not safe to assume that a drunk person is better of sleeping to make it go away.

</span>
3 0
3 years ago
How do organizations calculate various costs, and what do these calculations mean to business?
QveST [7]

Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

8 0
3 years ago
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