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
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

You might be interested in
A young man recently was hired by a major mortgage company in Tampa. Because he was unfamiliar with Tampa, the man purchased a r
Pavel [41]

Question Completion with Options:

A)  The man is not entitled to a refund, however, he may request that the $200 be applied to his down payment.

B)  He is entitled to a refund of $200 if requested in writing within 30 days of the contract date.

C)  He is entitled to a refund of $100 if requested within 45 days of the contract date.

D)  He is entitled to a refund of $150 if requested within 30 days of the contract date.

Answer:

The statement that applies to this situation is:

B)  He is entitled to a refund of $200 if requested in writing within 30 days of the contract date.

Explanation:

The Florida real estate laws provide that any real estate company that furnishes rental information to a prospective tenant for a fee must provide the prospective tenant with a receipt.  The receipt should contain the repayment provision, which can be made under specified conditions. However, the young man is expected to make his demand for a return of any part of the fee within 30 days from the date of the broker/sale contract.

3 0
3 years ago
In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects r
Iteru [2.4K]

Answer:  Please see answers in explanation column

Explanation:

Accounts title and explanation            Debit          Credit

Sales returns and allowances       $121,200      

Sales refund payable                                               $121,200

Calculation

Expected Sales returns and allowances = sales x expected percentage

= 2,020,000 x 6%=   $121,200

Accounts title and explanation            Debit              Credit

Inventory returns estimated               $72,600

Cost of goods sold                                                     $72,600

Calculation

expected Cost of goods sold =  Cost of goods soldx expected percentage

= 1,210,000 x6%=$72,600

7 0
3 years ago
Problems and Applications Q2 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per
kari74 [83]

Answer:

$550,000

Explanation:

Based on the information given the OPPORTUNITY COST OF RUNNING THE HARDWARE STORE will be $550,000 ($500,000+$50,000), which include the amount of $500,000 which is the cost of renting the store as well as to the cost to buy the stock while the $50,000 is her salary as an Accountant, reason been that she would QUIT HER JOB as an accountant in order for her to run the store.

Therefore the OPPORTUNITY COST will be $550,000

3 0
3 years ago
The number of accidents that occur annually on a busy stretch of highway is an example of:
andrew11 [14]
I believe the answer to this question is "<span>A discrete random variable". </span>
8 0
3 years ago
What can happen when international rivals compete against one another in multiple-country markets?
Genrish500 [490]

Answer:

It will initiate a trade war between countries.

Explanation:

When international rivals compete in the multi-country or global market, they usually show aggressive behaviour that initiates trade war between them and the countries. In order to compete in the market and to compete against each other, the rivals show aggressive behaviour in terms of profit and cost margins that helps the buyers to buy commodities of good quality and at low prices.

3 0
3 years ago
Other questions:
  • Ajax, a pharmaceutical company, has designed a new medicine for morning sickness among pregnant women. testing at their r&amp;d
    8·1 answer
  • Below are a set of heights (in inches) and GPA scores for a sample of 6 students. Height, GPA 60, 4.0 55, 3.2 62, 3.7 55, 3.9 49
    14·1 answer
  • The best strategy to hedge a short stock position against the possibility of an increase in the market price of the security wou
    12·1 answer
  • Fess Hardware Store had net credit sales of $8,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivabl
    12·1 answer
  • Which statement is most appropriate for the body of a cover message?
    6·1 answer
  • Sampson Company's accounting records show the following at the year ending on December 31, 2010: Purchase Discounts $ 5,600 Frei
    15·1 answer
  • To some people, speaking in public is not a stressor. <br><br> A. True B. False
    11·1 answer
  • There will be a higher equilibrium price and lower quantity if _____.
    13·1 answer
  • Calcular el valor futuro de $2,500 que se ahorran al final de cada mes por un periodo de 4 años con una tasa de interés del 9% a
    5·1 answer
  • Differentiate between manufacturer and Cunsumer​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!