1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nitella [24]
3 years ago
10

The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a strike price of $120 when the opt

ion price is $5. The options are exercised when the stock price is $110. The trader's net profit or loss is A. Gain of $1,000 B. Loss of $2,000 C. Loss of $2,800 D. Loss of $1,000
Business
1 answer:
lana [24]3 years ago
4 0

Answer:

D. Loss of $1000

Explanation:

Given that

A trader sells 200 put options at strike price of $120

And options are exercised when stock price is $110

Thus, payoff that must be made on option

= 200 × (120 - 110)

= 200 × 10

= $2000.

Also,

Amount received for the option

= price of option × quantity

= 5 × 200

= $1000

Therefore,

Trader's net loss = 2000 - 1000

= $1000

You might be interested in
Describe at least three other investments you want to make with your income either now or someday in the future. Explain why you
const2013 [10]
 <span>Don't invest in stock, period. Look up Options....Options are successful in a bearish and bullish market. As opposed to stocks are only in bullish markets. NEVER go in it for the long haul! Plain and simple.</span>
8 0
4 years ago
Read 2 more answers
About COMM101
ValentinkaMS [17]
What would you say your style is mine is a mix of grunge,kinderwhore and a little bit of hippie fashion
5 0
3 years ago
The material wealth of society is determined by the economy's _________, which is a function of the economy's _________. a. inve
Yakvenalex [24]

Answer:

The material wealth of society is determined by the economy's productive capacity, which is a function of the economy's real assets.

Explanation:

Production capacity or <em>productive capacity</em> is the maximum level of activity that can be achieved with a given productive structure. The study of capacity is essential for business management in that it allows analyzing the degree of use made of each of the resources in the organization and thus have the opportunity to improve them.

<em>Real assets</em> are physical assets that have value due to their substance and properties. Real assets include precious metals, raw materials, real estate, agricultural land, machinery and oil. They are appropriate for inclusion in more diversified portfolios due to their relatively low correlation with financial assets such as stocks and bonds.

7 0
3 years ago
Matthew manages the sales team at an information technology (IT) firm. His focus is to conduct business in accordance with his f
Romashka-Z-Leto [24]

Answer: utilitarian

Explanation:

Utilitarianism: this is one of the oldest, best known and most influential moral theories.

Like other forms of moral theories, its core principles is that whether an action is morally right or wrong depends on the final outcome or effects of such actions.

To be more specific, the only effects of actions that are relevant here are the good and bad results that they produce that such action produces nothing else matters.

7 0
3 years ago
GDP is defined as the a. value of all goods and services produced within a country in a given period of time. b. value of all go
Anon25 [30]

Answer:

c. value of all final goods and services produced within a country in a given period of time. 

Explanation:

GDP is the value of all final goods and services produced within a country in a given period of time. 

GDP = Consumption + Investment + Government Spending + Net Exports

GNP is the value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.

5 0
3 years ago
Other questions:
  • You have been a BCBA for over 5 years and decide to take on some additional work in the evening, supervising students seeking ho
    13·1 answer
  • A consumer has decided to buy a new automobile. before investing money in that purchase, the consumer should invest time in ____
    15·1 answer
  • The Consumer Products Division of Mickolick Corporation had average operating assets of $510,000 and net operating income of $42
    10·1 answer
  • The text identifies three goals of strategic messages. During office meetings, Sara expresses her respect for her boss by listen
    14·1 answer
  • The following information is provided for a company. Accounts payable $ 15,000 Buildings 80,000 Cash 10,500 Accounts receivable
    6·1 answer
  • A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer re
    7·1 answer
  • Contribution margin is:
    15·1 answer
  • Explain how money market accounts differ from regular savings accounts.
    9·1 answer
  • A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category o
    15·1 answer
  • Listing contracts, disclosures, and seller net sheets all have to do with<br> an understanding of:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!