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Ilya [14]
3 years ago
8

Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both hav

e the same expiration date. The call costs $5, while the put costs $2 (cheaper than the previous put with the strike price of $100). For what range of stock prices would the strangle lead to a loss
Business
1 answer:
Anuta_ua [19.1K]3 years ago
4 0

Answer:

[89, 106]

Explanation:

Call Strike Price (Xc) = 100

Put Strike price (Xp) = 95

c = 5, p = 2

In case of a long strangle, which means 1 long call and 1 long put.

Payoff at expiration =  Max (0, ST-100) + Max (0, 95-ST) - 7

Strangle would lead to a loss if ST falls in the range between 89 and 106.

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Vertical integration is a strategy in which a company expands backwards into an industry that provides outputs for its products.
Masja [62]

Answer:

The correct answer is letter "B": making wire ropes and expanding to make the steel for the ropes.

Explanation:

Indian company Usha Martin Ltd. manufactures wires and steel to be traded worldwide. Usha Martin operations are centralized from is headquarters from where it designs, cuts, manufactures and distributes steel. The company acquires raw material on its own through coal mining to later be sent to its power plant where the mineral is produced until it is transformed for sale.

<em>By making wire ropes, expanding to steel ropes while having full control of all the production operations, Usha Martin is implementing a vertical integration.</em>

5 0
3 years ago
Which investment type typically carries the least risk
iren [92.7K]
I think it would be the fixed income market. Hope this helps you.
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5 0
4 years ago
Read 2 more answers
A Nike Hoodie has a retail price of $99.00 and it costs the retailer $49.50. What is the mark-up
guajiro [1.7K]

Answer:

100%

Explanation:

Mark-up is the difference between selling price and cost price

Selling price =$99.00

Cost price = $49.50

Mark up = $99- 49.50

=$49.50

As a percentage

= $49.50/$49.50 x 100

= 1 x 100

= 100%

6 0
3 years ago
A canadian agent has an existing client who goes on vacation to Seattle, Washington. The agent wishes to contact the customer in
Rashid [163]

Answer:

The exception is due to vacation.

Explanation:

This is an example of a right answer, while, yes the individual must be registered in Canada, the exception is due to vacation.

7 0
4 years ago
Which of the following is not an example of a natural experiment an economist might use to evaluate a theory? a. Transit ridersh
Verdich [7]

Answer:

Example of not a natural experiment an economist might use to evaluate a theory is:

C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.

Explanation:

Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.

Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.

So, the right option is:

C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.

7 0
4 years ago
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