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
mr Goodwill [35]
3 years ago
6

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock pri

ce at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)
Business
1 answer:
horsena [70]3 years ago
8 0

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

You might be interested in
Today, money comes in many different forms. When you go to purchase something at a store, you pay money in the form of cash, a c
seropon [69]

Answer:

The Tulip Mania in Holland went to a economic collapse in the value of Tulip bulbs in 1637. Stating this, even though, it didn't affect the Dutch economy at the time, since the Dutch Republic was the leading economy in the 17th century. Stating this, if Holland was did not possess financial stability, the following potential problems might occur:

1. The entire Dutch Republic might go into a depression, making every form of  consumable and necessities inflated and money invaluable.

2. Might lead to a higher rate of unemployment, consequently resulting in other harmful factors like death.

3. Lastly, stating all of this, it would push back development for the Dutch and slow down progression.

Explanation:

I tried my best :)

7 0
3 years ago
Hi there !
Zanzabum

Answer:

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period while revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.

6 0
2 years ago
Read 2 more answers
MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan compa
Grace [21]

Answer:

Legal Risk

Explanation:

Legal risk are damage, financial, reputational losses or any other form of loss received by a business due to negligence in compliance with the law related to the business. They are prospective fines or loses that a business or an organization receives for not complying with the business law and regulations.

In this case, the prospective loss could come by associating with Azpak limited which have inadequate protection of intellectual property rights.

3 0
3 years ago
Read 2 more answers
When the market interest rate rises above the coupon rate for a particular quality of bond, the "current yield": will be below t
meriva

Answer: will be above the coupon rate

Explanation:

The Coupon rate is a fixed rate that a bond issuer pays to it's bond holders. The <em>Current Yield</em> however is calculated by dividing the Coupon payment by the Price of the bond.

When Market interest rises above the Coupon Rate, the price of the bond decreases in the market and vice versa.

Because the price of the bond is now less and it is the divisor of the Coupon rate to get the Yield, it will give a higher percentage which will be more than the Coupon rate.

4 0
3 years ago
Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc, during February, the first
pentagon [3]

Answer and Explanation:

The Preparation of income statement is prepared below:-

<u>Rushmore Biking Inc. </u>

<u>Income statement </u>

<u>For the month ended February 28 </u>

<u>Particulars                                                 Amount</u>

Revenues                                               $7,30,300

Less: Cost of goods sold                      $4,41,400

Gross profit                                            $2,88,900

Selling and administrative expenses:  

Selling expenses                    $1,48,500

Administrative expenses       $72,200  

Less: Total Selling and administrative

expenses                                                    $2,20,700

<u>Income from operations                             $68,200</u>

3 0
3 years ago
Other questions:
  • Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matri
    8·1 answer
  • 1. Which of the following sequences of events most accurately portrays a real-life scenario? (1 point)
    15·1 answer
  • ​John, a purchasing​ agent, is offered an​ all-expense paid trip to Hawaii by a supplier if he agrees to award a substantial amo
    8·1 answer
  • In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are:a. Excluded from the lab
    7·1 answer
  • A law firm would be considered a A. Service company B. Manufacturer C. Merchandise company D. None of the above
    14·1 answer
  • HR is focused on issues directly related to a person's job and with things that happen at work, as opposed to concerns that may
    10·1 answer
  • Type the correct answer in the box. Spell all words correctly. Which term describes a list of all ledger accounts that businesse
    5·2 answers
  • Giả sử anh/chị đang chuẩn bị thành lập một doanh nghiệp kinh doanh về một/hoặc một số sản phẩm trong một lĩnh vực. Hãy xây dựng
    15·1 answer
  • Lance contracts with Herman to fix the brakes on his car. The agreed upon amount is $750. When Herman is fixing the brakes, he n
    15·1 answer
  • Which ics function is responsible for documentation.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!