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
Answer:
0.047424
Explanation:
Given that
Expected return of security M = 17%
Standard deviation of Security M = 32%
Expected return of security S = 13%
Standard deviation of security S = 19%
And, the correlation coefficient = 0.78
So, by considering the above information the co variance is
= Correlation coefficient × Standard deviation of Security M × Standard deviation of security S
= 0.78 × 0.32 × 0.19
= 0.047424
The quantity of the $1,000 deposit is the bank required to keep in reserves is 20%.
<h3>What is a reserve deposit?</h3>
A reservable deposit would be any bank deposit subject to bank reserves established by the Federal Reserve Bank of the United States.
Some key features of reserve deposit are-
- Through the mechanism of fractional reserve banking, such a deposit could be used in part as a loan.
- The remaining portion, as established by the Fed's bank reserves, must be kept by bank & made available for prompt withdrawal upon request.
- A reservable bank is a banks deposit that is subject to the reserve requirement guidelines of the Federal Reserve.
- Transaction (checking) savings account, savings accounts, as well as non-personal time deposits are all examples of reservable deposits.
- Sweep accounts, often known as money market funds, is non-reservable deposit account that generate a greater rate of interest than reservable deposit accounts.
To know more about the reservable deposit, here
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Answer & Explanation:
C. the benefits accrue to politically powerful government officials and their constituents
