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
yawa3891 [41]
3 years ago
5

A trader wants to gain a profit by expecting a significant move in either direction of the underlying stock. Which strategy best

aligns to this goal?
Business
1 answer:
alexira [117]3 years ago
3 0

The best strategy for this trader, who wants to profit from either direction of the underlying stock, is <em>A. Long Put and C. Short Call.</em>

In securities trading, a call option gives the trader the <em>right to purchase </em>underlying security <em>without any obligation</em>.  On the other hand, a put option grants the trader the <em>right to sell</em> the underlying security <em>without any obligation</em>.

Thus, the trader will profit by using options A and C.

Learn more: brainly.com/question/24767538

You might be interested in
Which of the following scenarios most accurately reflects the concept of scarcity?
mojhsa [17]

Answer:

2. Brett is a farmer with an open field on which he can plant either soybeans or corn. 

Explanation:

Scarcity in economics means the resources available to meet man's needs are limited or scarce.

In brett's case, land is limited, so he has to choose between planting soybeans and corn.

I hope my answer helps you

3 0
3 years ago
XYZ Company uses an allowance method to account for bad debts. It estimates that 5% of the accounts receivable will be uncollect
Papessa [141]
Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
8 0
3 years ago
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi
Wittaler [7]

Answer:

Option (a) is correct answer (14 Months)

Explanation:

Given data

Investing in TQM = $2,000,000

Minimum rise in demand = 3.0 %

Last year’s sales = $163,508,343

As per the given data next year sales is increased by 3.0%. So, 3.0% of last year sales

=> 0.03 × $163,508,343 = $4,905,250.29 ~= $4,905,250

Income added to the bottom line = 34.1% of increased demand

=> 0.341 × $4,905,250 = $1,672,690.25~= $1,672,690

Payback on the initial $2,000,000 TQM investment can be attained in a period and can be computed by using the formula

=> (Investment in TQM / Revenue added to the bottom line) × 12

=> ($2,000,000 / $1,672,690) ×12 = 14.34 ~ = 14 Months

7 0
3 years ago
If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve ________ returns, an
Ede4ka [16]

Answer:

Explanation: do your best and i hope you do good

8 0
2 years ago
A ___________ jury is one whose members are irreconcilably divided.
elena-14-01-66 [18.8K]
<span>A hung jury is one whose members are irreconcilably divided.
In hung jury the members are </span>irreconcilably divided in their opinions that they cannot reach a verdict (a formal decision that was made by the jury) or we can say that they can't concur upon a decision after stretched out thought and can't achieve the required unanimity or super-majority, hung jury is also known as deadlocked jury.
4 0
3 years ago
Other questions:
  • Adair Valley issued $20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a
    8·1 answer
  • "at the clearing house, bank x has $300 in checks drawn on bank y and bank y has $200 in checks drawn on bank x. how does the cl
    12·1 answer
  • In an imperfectly competitive labor market, the cost of labor inputs and the value of the products sold will _________ vary as m
    5·1 answer
  • Based on the article, As Middle Class Shrinks, P&amp;G Aims High &amp; Low, identify the environmental forces from among the six
    8·1 answer
  • It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 m
    6·1 answer
  • Which organization was one of the five services that merged to form the current Coast Guard?
    5·1 answer
  • If your college leadership sought your advice on setting tuition, why would it matter if your college was the only college for m
    12·1 answer
  • Alex works as a customer service representative at an insurance company. Before starting his shift, Alex reviews issues from his
    5·2 answers
  • Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at a
    5·1 answer
  • A letter of resignation should be written and delivered to each of your coworkers when you leave a job. True or False?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!