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dalvyx [7]
3 years ago
6

A speculator may write a put option on stock with an exercise price of $15 and earn a $3 premium only if he thought Multiple Cho

ice the stock price would stay above $12. the stock volatility would increase. the stock price would fall below $18. the stock price would rise above $18 or fall below $12. the stock price would stay above $15.
Business
2 answers:
kirill115 [55]3 years ago
6 0

Answer:

the stock price would stay above $12.

Explanation:

Mashcka [7]3 years ago
6 0

Answer:

the stock price would stay above $12.

Explanation:

A put option will allow the owner of the option the right to sell a stock at a certain price. The put can be exercised or not, depending on how the price of the stocks varies. In this case, in order for the option to be exercised and make roughly a $3 profit per stock, the price of the stock must remain above $12. If the stock price rises over $15, then the option would not be exercised since the investor would lose money. If the price of the stocks lowers below $12, the profit made by the investor would be even larger, e.g. if the price is $10 and the investor sells at $15, the profit is $5 per stock.

The put option premium is the difference between the selling price of the stock and the exercise price. Premiums are never negative, since no one will exercise the put option if the price increases.

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Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

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We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

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Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week.Chris's behavior illustrates the <u>Income</u> effect of a wage increase.

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