Answer:
finding the best of three suggested routes to drive to a concert
Answer:
The maximum profit and loss for this position is $3 and -$7 respectively
Explanation:
The computations are shown below:
For maximum profit:
= Strike price at the sale - stock price + put price - call price
= $42 - $39 + $0.55 - $0.55
= $3
For maximum loss:
= Strike price at purchase - stock price + put price - call price
= $32 - $39 + $0.55 - $0.55
= -$7
Simply we take the difference between the strike price ,and the stock price and after that the put and call price are adjusted
Answer:
The correct answer is Chunking
Explanation:
Answer:
C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.
Explanation:
In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets