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QveST [7]
3 years ago
8

Steve has an option with a payoff profile that depicts a line that is constant at zero up until some point after which the line

slopes downward. What type of action did Steve take to obtain this profile?
a. Purchased a call option
b. Purchased a put option
c. Sold a call option
d. Sold a put option
e. Purchased and simultaneously sold the same call option
Business
1 answer:
ICE Princess25 [194]3 years ago
4 0

Answer:

D) Sold a call option

Explanation:

From the question, we are informed about Steve, who has an option with a payoff profile that depicts a line that is constant at zero up until some point after which the line slopes downward. In this case the type of action did Steve take to obtain this profile is Sold a call option.

a call option can be regarded as a kind of derivatives contract that enable the a call option for those that want to purchase stock or financial instrument the right to buy it at a specific price but not obligation. When a call option is sold, then the buyer is given the opportunity to buy the stock at a particular price with expeiration. The price is known as "strike price".

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institution ID Institution II 1. finances budget deficits. 1. loans funds to the banking system. 2. Sells newly issued governmen
mars1129 [50]

Answer: The answer is central bank

Explanation:

Budget deficit : This is when government total proposed expenditure for a period is more than the total estimated revenue. When this happens, government get the money to finance the deficit in the budget from the central bank or ask the central bank to print more currency or get aid and grant from foreign aid donors to finance the deficit.

Loan fund to the banking system: This is a function of central bank when they act as lenders of last resort to the commercial bank. If people begins to withdraw their money from commercial banks, the banks may be placed in such a position that they will not have enough cash to pay their customers. They will run to the central bank to borrow money or to rediscount bills and the central bank must not refuse to come to the aid of commercial banks in order to prevent banking crisis which may shake a country's economy.

Sells newly issued government bond : This is when central bank wants to reduce the volume of money in circulation, the central bank sells bond or securities in the open market .people buy with cheque drawn on their deposits in the commercial banks. The central bank then presents the cheque to the commercial bank and draw on their cash reserves by this the cash reserve of commercial banks is reduced and reduce the supply of money in the economy.

Create money out of thin air: This is the central bank function of issuing notes, it is the legal authority to issue notes. When new notes are to be put into circulation, this is done by the central bank .but the new notes are set into circulation through the commercial banks.

Control the money supply : This is the function of central bank to regulate the volume of money in circulation or to mop up excess liquidity in the economy by selling treasury bill through the open market to the members of the public .It collect money from the commercial banks this will reduce the cash reserves of commercial banks and reduce their loan given capacity.

Government bonds, the money supply : The central bank is the legal authority to sell government bonds in order to mop up the excess liquidity in the economy. When their is too much money in circulation, the central bank make use of monetary policy instruments such as the open market operation to reduce the supply of money in circulation.

7 0
3 years ago
In 2005, a loan broker and appraiser working for a subsidiary of Bank of America appraised the Cassies home at a fair market val
Tomtit [17]

Answer:

C. The Cassies will win.

Explanation:

In the given case, the cassies would win as this was appraisal fraud that done by the company employee who is a Bank of america Subsidiary. Here the loan broker and the appraiser increase the fair market value of cassies home i.e. $620,000 but it would be lesser that is $250,000. So this inflate the value in order to make the payment of high rate with related to the mortgage

3 0
3 years ago
You want to buy some used textbooks from an online auction but you see they don't accept credit cards. You don't want to send th
Nataly [62]

Answer:

Online actions are not always, but many times a fraud. The Federal trade commission (FTC) warns about them in their website because a lot of people fall for them every year. If the seller doesn't accept a credit card, you can try another online payment method like PayPal, but never send cash or any check.

8 0
3 years ago
Which one of the following would not be considered an advantage of the corporate form of organization?a. Limited liability of ow
solmaris [256]

Answer:

Disadvantage of Corporate Form of Organization:

d. Government regulation

Explanation:

In recent times, government regulation of businesses appears to be regarded as a disadvantage of the corporate form of organizations.  Governments intervene and regulate corporate entities whenever they fail to be self-regulatory.  But, the regulations may appear to be so much that the corporate form of organization now looks like a disadvantage.  Given the many corporate scandals, collapses, and misapplications of resources by corporate entities that have become the order of the day, government regulation is very important.  Without government regulation, many corporate bodies will not be acting in the public interest.  This is more so with public entity corporate organizations with diverse stakeholders and corporate managers who act as if they were running their own autonomous governments.

5 0
3 years ago
The term for a rise in prices of general consumer goods is
skad [1K]
C. Inflation

If you require clarification on why, feel free to comment! 

3 0
3 years ago
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