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torisob [31]
2 years ago
9

A put on Sanders stock with a strike price of $31 is priced at $2 per share, while a call with a strike price of $31 is priced a

t $2.50. The maximum per-share loss to the writer of an uncovered put is __________, and the maximum per-share gain to the writer of an uncovered call is _________.
Business
1 answer:
larisa86 [58]2 years ago
6 0

Answer: $29; $2.50

Explanation:

The maximum per share loss to the writer of an uncovered put; that is price of put is zero on expiration

Strike price = $31, at $2 per share

Therefore, maximum per share loss ;

($31 - 0) - $2 =

Maximum per share gain to the writer of an uncovered put occurs when the stock price falls below $31 on expiration.

Maximum per share gain equals $2.50

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6: the cost of a protein bar increased from $2.50 to $2.80. the percent increase in the $2.80 rate was how much?
fredd [130]
<span>The original cost of protein bar = $2.50
 The increased cost of protein bar = $2.80
 Therefore, the increase in price of the protein bar = $2.80-$2.50 =$0.30 percentage increase = (Difference in price / Original price) x 100
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5 0
3 years ago
According to the AD-AS model, if the economy is initially at its long-run potential growth rate, then a temporary increase in th
ivann1987 [24]

Answer:

C:an increase in both the inflation and real growth rates in the short run.

Explanation:

According to the AD-AS model, if the economy is initially at its long-run potential growth rate, then a temporary increase in the growth rate of investment spending will cause an increase in both the inflation and real growth rates in the short run.

8 0
3 years ago
Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $.306 an
Elenna [48]

Answer:

The profit for an investor who has $500,000 available to conduct locational arbitrage is $1,639.

Explanation:

Bank A has a ask rate of $0.305, so the investor can exchange his $500,000 at Bank A and get = $500,000/$.305 =  MYR = 1,639,344

Bank B has a bid rate of $0.306, he can invest 1,639,344= 1,639,344 × $.306 = $501,639.

501,639 - $500,000 = $1,639.

Thus, the profit is $1,639.

3 0
3 years ago
Alto and Solo are all-equity firms. Alto has 2,400 shares outstanding at a market price of $24 a share. Solo has 4,000 shares ou
Novosadov [1.4K]

Answer:

$100

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Net present value (NPV) = Alto's total value - Cost of acquisition =  $63,100 - $63,000 = $100

Therefore, the net present value of acquiring Alto to Solo is $100.

7 0
3 years ago
When a buyer finances a newly built home with a federal housing administration loan, what does the fha require the builder to do
AveGali [126]

A client finances a newly constructed home with a federal housing management mortgage,  the FHA requires the builder is The FHA set requirements for production and underwriting and insures loans made through banks and other private creditors for domestic building.

Finance is described because of the control of cash and consists of activities inclusive of making an investment, borrowing, lending, budgeting, saving, and forecasting. There are 3 primary forms of finance: (1) private, (2) company, and (3) public/government. The finance subject includes 3 fundamental subcategories: personal finance, corporate finance, and public (authorities) finance. customers and organizations use monetary services to collect economic goods and obtain economic desires.

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5 0
1 year ago
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