Answer:
A. Buy a low strike price call and sell a high strike price call
Explanation:
Bull spread is an optimistic, vertical spread options master plan that is designed to profit from an average rise in the price of the basic security and thus, the above-mentioned scenario creates a bull spread.
Answer:
$2,900 Increase
Explanation:
Considering the transaction
- Bassett sold inventory that had cost the company $1,400 for $4,300 on accounts receivable - Here, inventory reduces by $1,400 while accounts receivable increase by $4,300. This leaves a net impact of $2,900 (4300-1400) on total assets.
Hence the results of this one transaction is an increase of total assets by $2,900.
For a loss to be shown on his tax return, the total expenses (prices of goods, supplies, transportation and so on) must be larger than the sale or revenue.
Since he's always showing profit, this means that his revenue his more.
Scott may be including some illegitimate factors (factors that are not usually included in the calculation) in his calculations. These factors may lead to hypothetical loss for him.
The first two scenarios are <span>Hierarchical control and the third scenario is Decentralized control. </span>