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Alika [10]
3 years ago
5

All of the following are TRUE of a covered call writing strategy EXCEPT: (A) The strategy works best in a bull market. (B) The c

ost basis of the stock should be considered for tax purposes. (C) The call writer is expecting little change or a fall in the price of the underlying stock. (D) Repurchasing the calls in a closing transaction could lead to a loss.
Business
1 answer:
tiny-mole [99]3 years ago
4 0

Answer:

(A) The strategy works best in a bull

Explanation:

In the case of the call writing strategy, the following statement should be considered

a. the stock cost basis should be relevant for the tax purpose

b. The call writer should predict the little much change or there may be the decline in the price of the stock

c. If repurchasing is done for closing the transaction so it would result a loss

Therefore the option a is to be considered

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_____________ are a form of financial instrument through which corporations and governments borrow money from financial investor
makkiz [27]

Answer:

Bonds

Explanation:

Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.

When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.

Bonds can be municipal bonds or corporate bonds.

Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.

3 0
3 years ago
I NEED THIS ASAP
scoray [572]

A Digital Lab is a good digital learning environment for someone who is studying science.

Electronic Health Records are technology trends found in the field of medicine.

If you are looking for an out-of-print copy of a book, you should check a <u>Digital Library</u> .

(I just answered the question on Edgenuity myself)

7 0
3 years ago
Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is
nataly862011 [7]

Answer:

$0.25

Explanation:

The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:

MC = \$1.75-\$1.50 = \$0.25

The marginal cost of the sixth pencil is $0.25

4 0
3 years ago
Excellent Manufacturers Inc. has a current production level of​ 20,000 units per month. Unit costs at this level​ are: Direct ma
Marina CMI [18]

Answer:

The increase in operating profit is $1,829.00.

Explanation:

The rise or fall in the operating income:

= Purchase unit × ( offer price- direct material- direct labor- variable overhead)

The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)

The rise or fall in the operating income: = $1829

Therefore the profit will increase by $1829

Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.

6 0
3 years ago
The curve that shows the relationship between the sales price and quantity sold is called the:__________
Vinvika [58]

The curve that shows the relationship between the sales price and quantity sold is called the: demand curve.

The call for a  demand curve is a graphical representation of the relationship between the price of an excellent or carrier and the quantity demanded for a given time frame. In a standard representation, the rate will seem on the left vertical axis, the amount demanded on the horizontal axis.

A demand curve is a graph that shows the amount demanded at every rate. every now and then the demand curve is likewise referred to as a demanding agenda because it is a graphical illustration of the call for schedules.

The demand curve can be a critical device to apply while corporations make pricing decisions. this is because the call for a curve can show the price point where the purchaser responsiveness drops, as well as the fee point that elicits the very best demand.

Learn more about the demand curve here:

brainly.com/question/16790743

#SPJ4

5 0
1 year ago
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