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vova2212 [387]
3 years ago
13

Other things equal, the price of a stock call option is positively correlated with which of the following factors?

Business
1 answer:
seropon [69]3 years ago
4 0

Answer:

a. the stock price.

b. the stock volatility

d. the time to expiration.

Explanation:

The price of the Call Option is positively correlated with the price of the underlying stock because a Call option gives the holder the right to buy a stock at a certain price so if the underlying stock increases in value, the call option will increase in value as well as it means that the holder might be able to buy the stock at a lower price.

Volatility also moves in the same direction as the call option price because a high volatility means there is a chance that the stock will increase past the exercise price.

Time to maturity for non-European call options is also directly related to call option price because it means that there will be more time for the stock to change in value potentially for the better thereby increasing the call option returns.

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Katyanochek1 [597]

Answer:

Option (c) is correct.

Explanation:

Given information states that bananas and tangerines are substitute goods. We know that the cross price elasticity of substitute goods is positive which means that there is a positive relationship between the price of one good and the quantity demanded for substitute good.

Therefore, in our case as the price of bananas increases and all the other factors remains constant then as a result the quantity demanded for tangerines increases.

3 0
3 years ago
A food warehouse store got a very good buy on a brand of frozen orange juice and, rather than maintain it as extra inventory, pr
choli [55]

Answer:

(d) Sales promotion

Explanation:

Sales promotion is one level or kind of showcasing pointed either at the buyer or at the dissemination channel.  

It is utilized to present new item, get out inventories, pull in rush hour gridlock, and to lift deals incidentally.  

It incorporate challenges, coupons, complimentary gifts, misfortune pioneers, purpose of procurement shows, premiums, prizes, item tests, and discounts. Deals advancements can be aimed at either the client, deals staff, or dissemination channel individuals

4 0
2 years ago
Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cos
scZoUnD [109]

Answer:

Correct option is C.

If the CPI is 156.25 in 2007, then 2005 is the base year.

Explanation:

The CPI js given by the formula:

Current year prices/base year prices x 100

Given the values in years 2005,2006 and 2007, of all the given options, option (c) if the CPI is 156.25 in 2007, then 2005 is the base year is corrrect. This is because calculating CPI for 2007 using the above formula and 2005 as base year gives us CPI as 156.25.

5 0
2 years ago
explain sustainable income. what relationship does this concept have to the treatment of discontinued operations on the income s
Anni [7]

A corporation needs sustainable income in order to cover all of its expenses in the long run.

What is Sustainable income?

Sustainable income represents the after-tax gain or loss on the impact of operations on a discontinued segment of business for a period.

Therefore, in the case of a discontinued operation, there is no sustainable income arising in the future as the segment of business is already discontinued and income, if any, is going to come only for the period of the discontinued operation. Income or expense from discontinued operations is a line of item in the income statement of a company below income from continuing operations and before the net income.

To know more about Sustainable income, click here- brainly.com/question/18687603

#SPJ4

4 0
1 year ago
The HRM requirements of a(n) ________ strategy are well matched with a geocentric staffing policy.
slava [35]
<span>i believe its transnational :)</span>
6 0
2 years ago
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