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wolverine [178]
3 years ago
6

Economic theory Group of answer choices

Business
1 answer:
Elis [28]3 years ago
3 0

Answer:

D

Explanation:

Economic theory provides economists with a common language and way of thinking about how the world works

Is a set of definitions, postulates, and principles assembled in manner that helps make cause-and-effect relationships clear in economics?

Is like a guidebook in that it points out what to look for

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Why are banks willing to lend funds to people?
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If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is:_________
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If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.

<h3>What is maximum gain potential/capital gain?</h3>

When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.

Now according to the question-

  • A short stock with such a short puts is an income strategy with unlimited loss potential.
  • Although the customer will profit if the price falls, the customer signed an in-the-money put that would be exercised, requiring the client to acquire stock at 80 for a $100 loss here on stock shorted at 79.
  • However, the customer collected $500 in premiums, for a total gain of $400.
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  • In this scenario, the break-even point is 84, and the maximum gain is four points, between 84 to 80.

Therefore, the maximum gain potential is 400.

To know more about the maximum gain/capital gain, here

brainly.com/question/1381751

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