Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Answer:
10%
Explanation:
if you do 10% off of 90$ you get 81$
Answer:
The purpose of storing an index is to optimize speed and performance in finding relevant documents for a search query
Answer:
Maturity Stage
Explanation:
At the maturity stage the company is running at full capacity and is charging lower prices because the competitors has entered the market and it is more likely that the they affect the customer's choices. To retain this customer the company will have to offer the product at a lower price and increase the promotion cost to retain the share of the market share which means the profit per unit will decrease.