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Greeley [361]
3 years ago
5

What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 p

oints) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling price for the bonds is $80,000.
Business
1 answer:
Klio2033 [76]3 years ago
7 0

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1,500

Break even point = Strike price - Premium

Break even point = $90,000 - $150

Break even point = $88500

Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500

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SSSSS [86.1K]

Answer:

The correct answer is I and II.

Explanation:

Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because of several reasons.  

The financial intermediaries such as commercial banks, mutual funds, insurance companies, pension funds, etc. are more diversified than individual investors. They provide a number of options for borrowing and lending.  

These intermediaries work on a larger scale than an individual investor. They are thus able to reap the advantages of economies of scale which an individual investor cannot.

8 0
3 years ago
15. A market decline of 23% on a day when there is no significant macroeconomic event ______ consistent with the EMH because ___
gayaneshka [121]

<u>Answer:</u>Option c

<u>Explanation:</u>

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When the macroeconomic event has not taken place but there is market decline then EMH is not consistent with the event or the macro economic news.Market prices also reflect due to the latest information if any.

4 0
3 years ago
Plaintiffs purchased state lottery tickets and were winners along with 76 others. The state had advertised that $1,750,000 would
GenaCL600 [577]

Answer:

  • yes
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Explanation:

The plaintiffs must exhaust their administrative remedies before a court of law  would grant them the opportunity to pursue a legal action against the lottery board because it might a breach in communication or administration from the lottery board or the lottery director and the plaintiffs should  seek to resolve the issues without having to seek a legal action but through administrative remedies and procedures which more swift in resolving such issues

5 0
3 years ago
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Zarrin [17]

Answer:

The correct answer is D) offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that renders rivals largely irrelevant and allows a company to create and capture altogether new demand.

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3 years ago
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vampirchik [111]

Answer:

true

Explanation:

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6 0
3 years ago
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