Answer:
A) $1,000 gain
Explanation:
When a client buys a straddle, he is purchasing a call and a put option on the same stock with the same strike price and expiration date.
this client bought 5 ABC Jan 30 calls and 5 ABC Jan 30 puts:
each contract was worth $700 (= $3,500 / 5 contracts)
If the price of the stock fall below $30, the call option will not be taken, but the put option will be enforced. Since the value of the stock is $21, this means that the put option resulted in a $900 profit (= ($30 - $21) x 100).
The client paid $700 for each option, therefore his profit per option = $900 - $700 = $200
His total profit = $200 x 5 options = $1,000
Answer:
The main difference between wholesaler and retailer is that wholesaler are people who buy products in large quantities for reselling purpose to earn a profit whereas retailer is a person who sells products to the final consumer in small quantities.
Explanation:
Answer: $0; $0
Explanation:
New classical economists believe that any fiscal policy that the government embarks on is ineffective on the goods demanded by people.
If the government reduces taxes, Crystal (according to the New classical) will believe that the government will raise taxes in future to make up for the shortfall so she will send the $2,500 to savings so she can be able to pay off the future taxes.
If the government increases spending, Crystal will believe that this will be financed by future tax increases so she will still save the money to pay off future taxes.
Answer:
A. can be held liable for negligence because the store has a duty to warn its customers against foreseeable risk.
Explanation:
Negligence is a breach of act or certain level of behaviour, expected to be carried out by a reasoble person normal under the normal circumstances.
For a negligence claimed to stand in the court of law,
There must be an absence of duty of care by the defendant to the plaintiff.
There must be damages, losses, injury or harms suffered in the process by the plaintiff.
Causation. It must be proven that the plaintiff suffered loss, damage or injury as a result of defendant's negligence.
Examples of negligence is a shop owner who fails to put caution sign on a wet floor, a driver who fails to observe road signs thereby causing injury to pedestrians.
<h2>Analytical skill allow a manager to be able to make a problem apart and determine where the snag is.</h2>
Explanation:
Decision making:
Though it looks like closely matches, this skill enable people to take decision on various choices by analyzing its pros and cons. So this option goes invalid for the given situation.
Analytical:
This is the right choice. Analytical ability allows the person to analyze the problem, find the root cause and suggest possible solution.
Conceptual & Technical skill: These both are related to Technical aspect. But the given situation is based on the soft skill aspect.
