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Andreas93 [3]
3 years ago
11

A customer sells 1 ABC Jul 90 Put at $5 when the market price of ABC is $89. The market falls to $82 and the customer is exercis

ed. The customer then sells the stock in the market. The loss is: A $300 B $500 C $800 D $1,100
Business
1 answer:
Talja [164]3 years ago
7 0

Answer:

A $300

Explanation:

$90-$82= $8

$8-$5= $3

Therefore:

$3×100 shares =$300

The holder has bought the right to buy the stock at $90 per share because She bought this right for a premium of $5 per share. By exercising the call, the holder buys the stock at $90 and in which he /she sells the stock in the market at $82, for a 8 point loss. Since $5 points was paid in premiums, the net loss is 3 points or $300 on the contract covering 100 shares.

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Answer:

a. nations will be unable to specialize in what they are good at and therefore end up consuming less

Explanation:

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If trade between nations is prohibited, countries would have to produce goods that they are both efficient and ijefficient in their production, resources would be wasted, specialisation in the production of goods would not occur and consumption would fall.

I hope my answer helps you

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Arlecino [84]

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creativ13 [48]

Answer:

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