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finlep [7]
2 years ago
11

Which of the following is NOT true Group of answer choices An American option can be exercised at any time during its life A put

option will always be exercised at maturity if the strike price is greater than the underlying asset price When a CBOE call option on IBM is exercised, IBM issues more stock A call option will always be exercised at maturity if the underlying asset price is greater than the strike price
Business
1 answer:
galina1969 [7]2 years ago
4 0

Answer:

When a CBOE call option on APPLE is exercised, APPLE issues more stock.

Explanation:

A call option can be regarded as a "call", and can be explained as contract which exist between the buyer as well as the the seller of that call option, so they can exchange a security at a set price.

In domain of finance, the style or family of particular option can be regarded as the class that the option falls into, and this can be defined using dates that the option could be exercised. Most options usually fall as European or American options. It should be noted that An American option can be exercised at any time during its life. These should be noted;

✓A put option will always be exercised at maturity if the strike price is greater than the underlying asset price.

.A call option will always be exercised at maturity if the underlying asset price is greater than the strike price

Facts about

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If 1-Year Treasuries are yielding 5%, all preferred stocks are yielding 10%, and a manager selects a portfolio of preferred stoc
Burka [1]

Answer:

Risk Premium is 10%

Explanation:

Government treasuries represent risk free rate of return.

[tex]Risk Premium=R_{m}-R_{f}/tex] ,

where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]

           [tex]R_{m} = Market\ Rate\ Of\ Return/[tex]

           Risk Premium = 15 - 5 = 10%

Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.

So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.

4 0
3 years ago
Read 2 more answers
An experiment consists of measuring the speed of automobiles on a highway by the use of radar equipment. The random variable in
nalin [4]

Answer:

Continuous random variable

Explanation:

Continuous random variable is the one of the random variable which is defined as where the data could take infinitely many values for the variable.

For example, the random variable evaluates the time taken for doing something which is to be done or performed on continuous basis as there are infinite number of the possible times could be taken or consider.

So, in this case, the experiment comprise of evaluating the automobile speeds on the highway. Under this experiment, it have the infinite number. Therefore, this a continuous random variable

3 0
3 years ago
Professional etiquette suggests you should send a(n) ____ to each person who agrees to meet with you in support of your career e
olchik [2.2K]

Answer:

handwritten thank-you note

Explanation:

Professional etiquette can be regarded as ways of being able to live comfortably when with people and making them comfortable when they are arround you. They are general

guidelines as well as behavior that are needed in professional setting. It should be noted that Professional etiquette suggests you should send a

handwritten thank-you note to each person who agrees to meet with you in support of your career exploration.

5 0
3 years ago
What form of FDI is NOT an option in the service industry, due to the fact that many services have to be produced where they are
ankoles [38]

Answer: C. exporting

Explanation:

As many services have to be produced where they are sold, Exporting is not very ideal in the Service industry even if it might work here and there.

Exporting is a form of FDI that means sending the good in question to another country and this is not ideal when services are needed.

For instance, you need your hair cut in Maine but Maine uses exported Barbers from Mexico City, the logistics of such a business are to understate it, untenable. The barber should be in Maine.

8 0
3 years ago
Suppose the cost per hour incurred in operating a cruise ship is 3a + bv3 dollars per hour, where a and b are positive constants
Airida [17]

Answer:

Suppose the cost per hour incurred in operating a cruise ship is 3a + b v^{2}dollars per hour, where a and b are positive constants and v is the ship's speed in miles per hour. At what speed (in miles per hour) should the ship be operated between two ports, at a distance D miles apart, to minimize the cost? (Hint: Minimize the cost, not the cost per hour.)

<em>The speed at which the ship would maximize cost is </em>\sqrt[3]{\frac{3a}{2b} }

Explanation:

The problem can be solved using differentiation to get the minimum value of the speed to travel between the two ports. Step by step calculation is contained in the attached images;

3 0
3 years ago
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