answer.
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
sergejj [24]
2 years ago
8

You write a call option on Google. The current price of one share of Google is $400, the option strike price is $410, and the op

tion premium is $5 (all prices are per share). On the expiration day, the price of Google is $425. The following statement is true:
A) The call is in the money
B) your payoff is negative
C) your payoff is positive and equal to 10
D) A and B
E) A and C
Business
1 answer:
Vlad1618 [11]2 years ago
3 0

Answer: E) A and C

Explanation:

A Call option is an option to buy a security at a certain price in future. The option is only exercised if the market price of the security is higher than the option price of the security. When this happens the Call is said to be <em>in the money. </em>On expiration day, the price of Google is $425 which is higher than the option price of $410 so the Call is in the money. Option A is correct.

The option premium is the amount paid for the option contract and so is an expense. Payoff is calculated as;

= Market Value - (Option Price + Option premium)

= 425 - ( 410 + 5)

= $10

Option C is correct as well.

You might be interested in
BlackBerry, which gained significant market share in the early 2000s in the business, government, and consumer markets, lost mar
ziro4ka [17]

BlackBerry, which gained significant market share in the early 2000s in the business, government, and consumer markets, lost market share because "competitors offered phones with better designs and more features".

<u>Option:</u> B

<u>Explanation:</u>

The causes BlackBerry struggled are:

  • They were unable to innovate quickly enough. Apple and all the Android phone manufacturers released their phones with new operating system and physical shapes.
  • That was a major disruption in the market for cell phones and BlackBerry did not follow.

The company after Chen took over BlackBerry in late 2013 to concentrate more on apps. In 2016, the team stopped manufacturing its own branded phones and is now depending on suppliers to do so. The organization now provides a lot of its software and services revenues, as well as licensing, to big corporations.

4 0
2 years ago
Read 2 more answers
Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the f
irakobra [83]

Answer:

option D

$148.2

Explanation:

Given in the question,

cost of fish = $84.79

cost of filter on sale = $44.75

cost of plants = $18.66

Total cost = $84.79 + $44.75 + $18.66

                = $148.2

5 0
2 years ago
Read 2 more answers
PLEASE HELP OFFERING 20 POINTS AND WILL MARK YOU AS BRAINLY
Firdavs [7]

Answer:

The answer is d

Explanation:

PV=(AP-SP) x AQ

500u=(1-x) x 10,000

500u=10,000x

x=$0.05

SP=1-0.05

=$0.95

Hope this helps! have a great day!

7 0
3 years ago
H&amp;M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional
EastWind [94]

Answer:

The correct answer is the option B: Quick response (QR)

Explanation:

To begin with, a <em>quick response inventory system</em> involves the intention of shorten the lead time from receiving an order to delivery of the products and increase the amount of cash flow. Moreover, this system focuses primarily in the reduction of the time that the stuff is stuck in the inventory in order to avoid the low stock rotation and in that way to try to increase the sales that the company has. And in that way the company can receive the merchandise in time in order to sale it or to use it for another product.

4 0
2 years ago
Read 2 more answers
hen Jayden, a salesman at Srastis, a company that sells home appliances, did not achieve his sales targets for three consecutive
pav-90 [236]

Answer: Employee separation

Explanation:

From the question, we are informed that Jayden, a salesman at Srastis, a company that sells home appliances, did not achieve his sales targets for three consecutive quarters, and that his manager asked him to resign.

In the context of human resource planning, this scenario best illustrates employee separation. Employee separation has to do with situation whereby the services of an employee is no longer needed by an organization.

7 0
2 years ago
Other questions:
  • Suri is graduating from college soon and has been contemplating her career choices. She is graduating with a bachelor’s degree i
    14·2 answers
  • Chocolotto, a chocolate manufacturer, displays a brown dot in a brown square symbol, instead of a green dot in a green square sy
    7·1 answer
  • Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 m
    8·1 answer
  • While Jon is walking to school one morning, a helicopter flying overhead drops a $20 bill. Not knowing how to return it, Jon kee
    6·1 answer
  • Esther and Holly have a disagreement over which company to present their business idea to. They decide to disregard their differ
    10·1 answer
  • A bank of 10 machines requires regular periodic service. Machine running time and service time are both exponential. what is the
    9·1 answer
  • Your marketing research team has presented you with the research on the external marketing environment. Your first task is to gr
    9·1 answer
  • A contingent liability: multiple choice is only remotely possible. cannot be estimated. will result from a future event. is a po
    5·1 answer
  • QUESTION 4 of 10: A clothing designer is looking for a job that can cover her living expenses of $5,000 per month. If she plans
    10·1 answer
  • When working with a security consultant that your company has hired, you notice that he is running software on one of the machin
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!