Answer:
$500 loss
Explanation:
Since you purchased a call contract for IBM stock, you had the option to buy IBM stock at a specified price ($125) within a specified time (?). The problem is that the price of your call contract was higher than the market price at that specific date. Obviously you will not exercise your option in order to limit your losses.
long call profit = Max [0, (current stock price - strike price) x number of shares] - premium paid)
where:
- current stock price = $123
- strike price = $125
- number of shares = 100
- premium paid = $5 x 100 = $500
long call profit = Max [0, ($123 - $125)(100)] - $500 = -$500
Answer:
probably not paying it off in time or something
Explanation:
The inductive method is also sometimes called a scientific method. The method starts off by stating many observations of nature then arriving to the conclusion. The goal is to find a few and powerful ending statement based on the previously stated individual reasons.
Answer:
The supply of the output from the hydroelectric power plants to decrease
Explanation:
As mentioned in the problem statement now an extra task is added to the process of electricity production. This will slow down the output rate of electricity and hence it can be safely concluded that the supply of electricity will decrease.
