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BartSMP [9]
3 years ago
10

tock is trading at $100 and you buy a put option on it with one year to expiration and a strike price of $110. The put premium i

s $15. What is the maximum profit you can make on this put option if you wait until expiration
Business
1 answer:
klio [65]3 years ago
3 0

Answer:

The answer is -$5

Explanation:

A put option gives its owner/holder the right but not the obligation to sell. The holder of a put option is expecting the price of the underlying asset(stock) to drop.

The formula is:

Profit = max(0, X - St) - P

where X is the strike or exercise price

St is the market value or the spot price of the underlying asset

P is the premium

max(0, $110 - $100) - $15

10 - $15

-$5

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Ellen Benson has been operating a small catering business out of her home. Business growth is now requiring an office and kitche
miskamm [114]

Answer:

B. State statutes

Explanation:

When it comes to incorporating an entity, each state has its own definitive laws of incorporation and that can be found in state statutes. The laws of incorporation that can be found in this statute includes laws regarding the extent of personal liabilities of directors of a limited liability company.

All other options- zoning ordinances, county ordinances and code of Federal regulation- have nothing relevant to the laws of incorporation.

So Ellen Benson can find the laws of incorporation in her state statutes.

6 0
3 years ago
The chief reason that family and friends are frequent targets of aggression is that
jarptica [38.1K]
I think the most likely reason that family and friends frequently become targets of aggression is that "they're there", that is, they are present when you come home from work, or when something happens and might just accidentally encounter us in a bad mood.

This can be phrased as "they are convenient"- they are there to be the object of frustration. <span />
4 0
3 years ago
Sandra's automobile, which is used exclusively in her trade or business, was damaged in an accident. The adjusted basis prior to
strojnjashka [21]

Answer:

The Sandra's adjusted basis for the automobile after the casualty will be $7000.

Explanation:

Sandra's adjusted basis after accident can be taken out using the following procedure -

  ADJUSTED BASIS BEFORE ACCIDENT

                         -

 LOSS DEDUCTION

                         -

 INSURANCE PROCEEDS

we have been given the value of adjusted basis before accident = $11,000 and insurance proceeds as = $3200, but we have to find the value of loss deduction.

LOSS DEDUCTION =

VALUE DECLINE - INSURANCE PROCEEDS

Where value decline is the difference between the market value of automobile before and after accident and insurance proceeds - ($10,000 - $6000) - $3200

     VALUE DECLINE - $4000 - $3200

                                 = $800

Now putting all the values in the procedure -

= $11,000 - $800 - $3200

= $7000

5 0
3 years ago
The process of setting aside money and putting it to work by having it earn interest or dividends or gain value in the equities
Kisachek [45]

Answer:

Saving and investing.

Explanation:

Savings is basically putting aside current money for future use. Investing is committing money to make profit over period of time.

4 0
4 years ago
the circular flow model is group of answer choices a simple model that explains how the economy is organized. a geographic model
pickupchik [31]

The circular flow model is  a model that shows the flow of money in major financial institutions.

<h3>What is circular flow model?</h3>
  • The circular flow model shows how money flows in an infinite loop from producers to households and back again.
  • In an economy, money moves from producers to workers as wages, and  from workers back to producers as workers spend money on products and services.
  • In economics, a circular flow model represents the organization of the economy in a simple economic model.
  • The diagram includes households, firms, markets for factors of production, and markets for goods and services.
  • A circular flow model is an economic model that shows how money, goods, and services move between sectors of an economic system.
  • This model is also known as the income cycle because money flows  between  sectors are also tracked to measure a country's national income or GDP.

To learn more about circular flow model from the given link :

brainly.com/question/11324259

#SPJ4

7 0
1 year ago
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