the maximum gain on a long call is a) unlimited. b) strike price – premium. c) the premium. d) strike price + premium.

Answers

Answer 1

The maximum gain on a long call is a) unlimited. Option A is correct.

When an investor purchases a long call option, they have the right to buy the underlying asset at the strike price. If the price of the underlying asset increases significantly, the value of the call option also increases. This allows the investor to sell the option at a higher price or exercise it to buy the asset at a lower price and sell it in the market at a higher price. Since there is no limit to how high the price of the underlying asset can rise, the potential gain on a long call option is unlimited. Therefore, the correct answer is a) unlimited.

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Related Questions

If at the end of a period, a company has $400 in cash, $100 in accounts
receivable, and $100 in accounts payable, the post-closing trial balance will
show _____worth of debits.
A. $200
O B. $400
O C. $600
O D. $500

Answers

Option D

The post closing balance will show $500 worth of debits.

This is because if a company has $400 in cash, that is considered an asset for the company. Cash is an asset for the business.

Accounts receivable is an asset as well because it is the amount that debtors owes the business. It’s the amount that debtors should give to us the business.

Fatoumata just accepted a job at new company where she will make an annual salary of $ 43,000. Fatoumata was told that for each year she stays with the company, she will be given a salary raise of $ 5,000. How much would Fatoumata make as a salary after 3 years working for the company? What would be her salary after t years?
Salary after 3 years?
Salary after t years? I have to write it out as independent and dependent so what is what? How would I write it in the formula that I'm using which is y=f(x).

Answers

Fatoumata would make a salary of $58,000 after 3 years working for the company. Her salary after t years can be represented by the formula y = 43,000 + 5,000t, where y represents her salary and t represents the number of years she has worked.

The initial salary for Fatoumata is $43,000. For each year she stays with the company, she receives a salary raise of $5,000. This means that for each year, her salary increases by $5,000. Therefore, the formula y = 43,000 + 5,000t represents her salary after t years, where t is the number of years she has worked.

In the formula y = 43,000 + 5,000t, y is the dependent variable (salary) since it depends on the number of years worked (t), which is the independent variable. The constant term, 43,000, represents her initial salary, while the coefficient of t, 5,000, represents the salary raise per year.

After 3 years working for the company, Fatoumata's salary would be $58,000. Her salary after t years can be calculated using the formula y = 43,000 + 5,000t, where y represents her salary and t represents the number of years she has worked.

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suppose stock a has a return of 14.1%. the risk-free rate is 2.74%. what is the risk premium on stock a?

Answers

The Risk premium on stock in the given question is 11.36%.The risk premium formula is Simply subtract the expected return on a given asset from the risk-free rate.

What is Risk premium of a stock?

The investment return that an asset is anticipated to generate over and above the risk-free rate of return is known as a risk premium. Investors receive compensation in the form of an asset's risk premium. It serves as compensation to investors for their willingness to accept greater risk in a particular investment than in a risk-free asset.

For instance, there is often low default risk associated with bonds of excellent quality issued by well-known companies making substantial profits. As a result, these bonds offer lower interest rates than those offered by less reputable corporations that face a larger risk of default and uncertain profitability. Investors are rewarded for their increased risk tolerance by requiring these less well-established enterprises to pay higher interest rates.

Simply subtract the predicted return on a particular asset from the risk-free rate, which is the current interest rate paid on risk-free investments like government bonds and Treasury securities, and you have the risk premium formula.

Formula: Asset Return – Risk-Free Rate = Risk Premium

              14.1-2.74=11.36

The Risk premium on stock in the given question is 11.36%

The investment return that an asset is anticipated to generate over and above the risk-free rate of return is known as a risk premium.When they make an investment, investors expect to be compensated for the risk they take. This manifests as a risk premium.The premium investors anticipate receiving for accepting the comparatively higher risk of investing in stocks is known as the equity risk premium.

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Imagine you work in a factory that produces several types of bicycles. A county bureaucrat delivers a report listing numbers, types, and prices of bicycles the factory should make for the upcoming season. Which kind of economic system is this most likely to be? Explain

Answers

The economic system depicted in this example is a Command Economy since the government determines the production decision.

What is a command economy?

A command economy is an economic system in which the following characteristics are prevalent:

Means of production are publicly owned.Economic activity is controlled by a central authority.Quantitative production goals and raw materials are allotted.

A command economy is different from a:

Market EconomyTraditional EconomyMixed Economy.

Thus, the economic system depicted in this example is a Command Economy since the government determines the production decision.

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A loan is being repaid with 25 annual payments of 300 each. With the 10th payment, the borrower pays an extra 1,000, and then repays the balance over 10 years with a revised annual payment. The effective rate of interest is 8%. Calculate the amount of the revised annual payment.

Answers

The revised annual payment required to repay the remaining balance over 10 years with an effective interest rate of 8% is $3,128.46.

To calculate the revised annual payment, we need to first determine the remaining balance on the loan after the 10th payment.

After the 10th payment, there are 15 payments remaining, and the borrower has paid a total of $3,000 (25 payments x $300).

With the additional $1,000 payment, the total paid is now $4,000, leaving a remaining balance of $21,000 ($25,000 original loan - $4,000 paid).

Using the present value of an annuity formula, we can calculate the revised annual payment required to repay the remaining balance over 10 years at an effective interest rate of 8%.

The formula is: Revised Annual Payment = Remaining Balance / Present Value Factor

The present value factor can be found using a financial calculator or table and is calculated based on the interest rate and number of payments.

For 10 years at 8%, the factor is 6.7101.

So, Revised Annual Payment = $21,000 / 6.7101 = $3,128.46

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which of the following statement is true of many firms today? a. they are focusing more of their resources on core capabilities. b. they are trying to create alliances with suppliers, transportation and warehousing companies and manufacturers. c. they are using a collaborative approach to buying, making, and distributing goods and services. d. all of these

Answers

The correct answer is ​C. they are using a collaborative approach to buying, making, and distributing goods and services.

Justify the answer?

Technique or analysis through which the company is able to detect what are the resources and capabilities that can provide a certain sustainable competitive advantage, that is, a position of superiority in the market compared to its competitors over time.

The VRIO analysis is based on the resources and capabilities approach and arises from the internal analysis of the company.

The terms and definitions that make up the VRIO analysis (Valuable, Rare, Inimitable and Organized) or VRIN Model (Valuable, Rare, Imperfectly Imitable and Non substitutability) are the following:

VALUABLE. They allow new opportunities in the market.RARE, UNIQUE OR SCASSES. Company specific and difficult to obtain in the market.INIMITABLE. Hard to copy or imitate by competitionORGANIZED. Exploited efficiently by the company and complementary.

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True or false?

2 best friends are one mind in 2 bodies?

Answers

Answer:

True

Explanation:

because they are I hope its right

Answer:

well i would say true because friendship is a really strong thing

but then i don't really know

If the demand for a consumer good decreases the demand for resources required to make the good will?

Answers

If the demand for a consumer good decreases the demand for resources required to make the good will decrease.

A consumer is a person who orders, orders, or uses purchased goods, products, or services primarily for personal, social, family, household, and similar needs not directly related to an entrepreneurial or business activity. A person or group intended to

Consumers are defined as individuals or businesses that consume or use goods or services. A customer is a buyer in the economy who buys goods and services, and can exist as a consumer or as a sole customer.

A person who purchases a product or service for personal use rather than manufacturing or reselling it is called a consumer. A consumer is someone who decides whether to purchase an item in a store or who is influenced by advertising and marketing.

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Select the correct answer. Which sales channel is the most effective for a business that has a small scale of operations? a A. telemarketing B. hiring agents C. flea markets D. franchising E. multilevel marketing​

Answers

Answer:

franchising marketing

A(n) _________ is a network of activities that generate value by transforming inputs into outputs.

A. function
B. capability
C. network
D. business process
E. activity

Answers

A(n) business process is a network of activities that generate value by transforming inputs into outputs.

What is the meaning of Business?

An innovative company or group that engages in professional activities. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.

The exchange, acquisition, sale, or creation of goods and services with the aim of making money and meeting client demands constitutes a business. Businesses can be either for-profit or nonprofit organizations that aim to advance a social cause or generate revenue, as appropriate.

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Sally earns $3200 per month. If 6.2% is withheld for Social Security and 1.45% is withheld for Medicare, how much is withheld for FICA tax each month? Round your answer to the nearest cent, such as: $328.13.

Answers

Answer:

$244.8

Explanation:

Calculation for how much is withheld for FICA tax each month

FICA tax =($3200 per month*Social Security 6.2%)+($3200 per month*Medicare 1.45%)

FICA tax =$198.4+$46.4

FICA tax =$244.8

Therefore how much is withheld for FICA tax each month is $244.8

Businesses that use physical locations and e-business are known as

Answers

Answer:

Explanation:What an e-business sells can help to classify it. In addition to a physical location, physical goods can be offered through an online store or marketplace. Online retailers can offer almost any kind of product, including clothing, athletic products, and home items.

Online purchasing can give small companies who sell perishable artisanal goods like jams or cheeses access to a new, location-unrestricted market. Businesses can ship their products to clients within a day or two thanks to drop-shipping options and useful packaging. Additionally, they can collaborate to sell subscription boxes that bring together a variety of connected products and make them available to customers on a regular basis.

how to open a bank account that no creditor can touch?

Answers

To open a bank account that no creditor can touch, you will need to consider opening an account with a financial institution that offers asset protection services.

These types of accounts are typically known as asset protection trusts or offshore bank accounts. By setting up an asset protection trust, you can shield your assets from potential creditors and legal claims. However, it is important to note that this process can be complicated and may require the assistance of a financial professional or lawyer. Additionally, there may be legal and tax implications associated with setting up an offshore account, so it is important to research and understand all of the potential consequences before proceeding.

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question one please. thank you

question one please. thank you

Answers

Answer:

companies like Nike Inc have mission statements to attract the attention of the public .. thereby making it more easy to sell their products in the market

The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses.

Answers

The entity who should be thought of as a firm's banker and source of information should be the Banker.

Roles of a banker in a company

They advise the company on financial and capital needs to ensure that the company gets the funding it needs to be successful.

They also serve as a source of information for various aspects of the financial world and can assist in preparing financial statements. They are therefore partners to the business.

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1. Suppose that incomes have fallen on average, and that the state of Florida had an extremely favorable growing season for its orange crop. How would we expect that this will affect the supply curve and why? (The supply curve can remain static, the supply curve can shift to the left, we do not have enough information to say, or the supply curve will shift to the right)

Answers

Because it affects the environment and how we devolpe in it every day

Due to severe weather and a disease that affects citrus fruit, Florida's orange harvest is anticipated to fall to its lowest level since before World War II. Orange juice costs would rise as a result of this further reducing the state's already meager supply.

Where Florida is Located?

Florida is a state located in the southeast region of the United States. It is bordered by the Atlantic Ocean and Bahamas to the east and southeast, Georgia to the north, Alabama to the north and northwest, the Straits of Florida to the south, and the Gulf of Mexico to the west.

The Atlantic Ocean and the Gulf of Mexico both border this state, making it unique. With approximately 21 million residents and a land size of 65,758 square miles, Florida is the 22nd-largest state in the nation by both population and area (170,310 km2).

The Miami metropolitan area, which is funded by Florida, is the state's largest metro area even though Jacksonville is the largest city in terms of area.

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Janet saves $3,000 a year at an interest rate of 4.2 percent. What will her savings be worth at the end of 35 years?
A. $229,317.82
B. $230,702.57
C. $230,040.06
D. $234,868.92
E. $236,063.66

Answers

Answer: 8,556.

Explanation: To find out how much Janet's savings will be worth at the end of 35 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the future value of the savings, P is the present value (or principal), r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.

In this case, we have P = $3,000 (the amount Janet saves each year), r = 4.2% (expressed as a decimal, or 0.042), n = 1 (since the interest is compounded once per year), and t = 35. Plugging these values into the formula, we get:

A = $3,000(1 + 0.042/1)^(1*35)

= $3,000(1.042)^35

= $3,000(2.852)

= $8,556

Therefore, at the end of 35 years, Janet's savings will be worth $8,556.

Which financial statement summarizes a business’s incomes and expenses?
The main purpose of the BLANK statement is to present your business’s earnings for a given period as it summarizes your incomes and expenses.

Answers

Answer:

Income statement.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The income statement is a financial statement that summarizes a business’s incomes and expenses.

Hence, the main purpose of the income statement is to present your business’s earnings for a given period as it summarizes your incomes and expenses.

Hannah works in a factory that makes hearing aids. She is part of a team that designs how the electrical components are put together and encased. What kind of education or experience most likely prepared Hannah to qualify for this position?

A. an apprenticeship with another hearing aid maker

B. a bachelor's degree in electrical engineering

C. an internship at a hearing screening clinic

D. a doctorate in medicine​

Answers

I think it’s b because of electrical components

Answer

A Bachelor's Degree in electrical engineering.

Explanation:

She needs the knowledge of how to setup a hearing aid and they have electrical parts. So she is going to need that Bachelors Degree.

What is comprehensive auto insurance

Answers

Answer:Your comprehensive car insurance coverage, also known as other than collision coverage, can help pay the costs of damage to your car for non-accident related claims. ... This insurance helps cover damage up to your car's actual cash value  minus any deductible amount

Explanation:

What are the economic impacts of entrepreneurship?

Answers

Entrepreneurship quickens a economy's expansion. Through the development of distinctive offerings and services, they encourage the creation of new jobs, ultimately accelerating economic growth.

Which economic elements play the most significance in entrepreneurship?

Economic forces include elements like money, public projects, raw materials, manpower, and the market.Without these factors representing, a company cannot grow and generate a profit.Non-economic factors are highly altered by the entrepreneur's nationality and country of residence.

What effects does entrepreneurship have on society?

Social entrepreneurs provide a place to work, food, reasonably priced electricity, and other necessities for individuals in need.Companies that cooperate with and assist social entrepreneurs are estimated to improve the lives of nearly 1 billion people.

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What is meant by the invisible hand? Explain thoroughly using these terms in your explanation; “competition” “self-interest” “self-regulating

Answers

Answer:

The invisible hand is the term in economics and political philosophy for the invisible mechanism that drives a free market system, coined by economist Adam Smith. Ever since then, it has been a central concept for economists and conservative politicians in their arguments for a pure, non-state intervention free market, laissez-faire policy.  

In his analysis, Adam Smith argued that the free market itself is a mutually beneficial arrangement that occurs in itself, spontaneously, as if some invisible hand is operating, by a chain of thousands of exchanges without participants thinking anything about the consequences.

Therefore, through competition guided by the market participants' self interests, all market participants would benefit in a collateral way, provided that there is a proper self regulation of the market, and not a regulation guided by the government.

explain any four consumer rights as stipulated in the CPA​

Answers

It’s a bill that has/says that every person has four basic consumer rights. Which are -“the right to be informed, the right to choose, the right to safety, and the right to be heard. ”

Answer:

The right to be informed, the right to choose, the right to safety, and the right to be heard.

Explanation:

These rights received a lot of attention from the consumer movement, a movement to pass laws protecting consumers from unfair and unsafe business practices.

Long-term objectives are useful because they Multiple choice question. can be accurately measured, whereas short-term objectives are vague and difficult to quantify. prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities. emphasize performance improvements in the current period. set specific expectations for employees on a day-to-day basis.

Answers

Answer:

Option B

Explanation:

Option B:

Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.

nomar is considering the purchase of an $18,000 car. he plans finance 80% of the value of the car (he will put down 20% at the time of purchase) and is offered five-year financing at 7%. what will be his monthly payment if financed with a 7% simple interest installment loan?

Answers

The formula to calculate periodic loan payment amounts is

(P * r * (1+r)n)/((1+r)n-1)

Where P is the principal Amount

R is the periodic interest rate

n is the number of periods

Given that the interest rate is 7%

Now monthly interest rate is ( 1.07)1/12 -1

= 1.00565415 -1

= 0.00565415

Or we can say that the interest rate is 0.565415%

Given that the amount borrowed is 80% * 18000 = 14,400

Number of months = 5 *12 = 60 Months

Therefore 14,400 * 0.00565415 * ( 1.00565415)60/(( 1.00565415)60 -1)

= 14,400 * 0.00565415 * 3.48415277

= $283.6786

Therefore the monthly installment amount is $283.6786

A set-rate charge is an installment mortgage with an interest rate that can't be modified throughout the life of the loan. The fee quantity will also continue to be identical, although the proportions that cross closer to paying off the interest and paying off the primary will vary.

Divide your interest fee by using the wide variety of payments you may make that yr. If you have a 6 percent interest charge and you are making monthly bills, you would divide 0.06 with the aid of 12 to get zero. Half. Multiply that variety by using your closing loan balance to discover how a whole lot you may pay in a hobby that month.

A $500,000 annuity would pay you $1916 hobby in line per month. If you allow your annuity hobby to build up and make a withdrawal yearly a $500,000 annuity could pay $23,491 according to 12 months. You may evaluate ultra-modern maximum fixed annuity prices here.

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Why is workplace diversity important for the success of the company?

Answers

A diverse workforce is more likely to understand your customers' needs and come up with ideas to fulfill them. Diversity in the workplace will also increase employee morale and instill a desire to be more effective and work more efficiently. This will greatly increase the productivity of your business.

Which is the main reason why IT professionals need to pursue continuing education and self-directed learning?
to obtain a formal degree
to develop a broad historical perspective
to meet legal training requirements
to maintain and improve professional skills

Answers

Answer:

B

Explanation:

Continuous professional development gives people the chance to improve their existing abilities and fill in any knowledge gaps, giving them an advantage in situations where they might need it, like a job interview.

Thus, Option D is correct.

What does professional development serve as?

To support individual, school-wide, and district-wide improvements for the objective of raising student achievement, professional development aims to enhance knowledge and abilities. Federal and state mandates place a constant increase in demands on educators.

The rules and expectations for all public schools across the nation have drastically changed as a result of the federal No Child Left Behind legislation. One of the numerous modifications is the requirement that all professional development be directed on raising student accomplishment.

Therefore, professional development typically entails teachers expanding their knowledge of instructional strategies or extending their comprehension of academic content.

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Stockholders are individuals who _____________.

Answers

A shareholder is an individual who holds one or more shares of stock in a public or private business. Shareholders receive ownership rights based on the percentage of corporation stock they possess.

What exactly are shareholders, and what is the distinction between stockholder and shareholder?

A shareholder of a corporation is an individual or legal entity who is registered as the legal owner of shares of a public or private corporation's share capital by the corporation. Shareholders are individuals who are owners of a corporation.

To get into the nitty-gritty of the phrase, "stockholder" officially refers to the owner of the stock, which might be interpreted as inventory rather than shares." Shareholder," on the other hand, refers to the owner of a share, which may only apply to an equity position in a corporation.

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what are two resources within you that are important when choosing a career you would like

Answers

Answer:

Your happiness


education and training


social environment

Explanation:

A couple with secure jobs rent a house for $800 per week, and have been offered the chance to buy it for $1.4 million. They have $200,000 deposit, and their bank has agreed to lend the balance of the purchase price at 4.2 percent PA interest with repayment of principal and interest over 25 years in equal monthly payments. Calculate how much the monthly repayment will be.

Answers

The monthly repayment for the loan will be approximately $6,013.25.

To calculate the monthly repayment amount, we can use the formula for the monthly payment on an amortizing loan. The formula is:

M = P * r * (1 + r)^n / ((1 + r)^n - 1)

Where:

M = Monthly payment

P = Loan principal (purchase price minus deposit)

r = Monthly interest rate (annual interest rate divided by 12 and expressed as a decimal)

n = Number of monthly payments (number of years multiplied by 12)

Given information:

Purchase price = $1.4 million

Deposit = $200,000

Loan principal = Purchase price - Deposit = $1.4 million - $200,000 = $1.2 million

Annual interest rate = 4.2%

Number of years = 25

First, let's calculate the monthly interest rate:

r = 4.2% / 12 = 0.042 / 12 = 0.0035

Next, let's calculate the number of monthly payments:

n = 25 years * 12 = 300 months

Now we can substitute these values into the formula to calculate the monthly repayment:

M = 1,200,000 * 0.0035 * (1 + 0.0035)^300 / ((1 + 0.0035)^300 - 1)

Evaluating this expression, we find:

M ≈ $6,013.25

Therefore, the monthly repayment for the loan will be approximately $6,013.25.

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