« previous next »

Author Question: The period of time over which all inputs are variable is the A) market horizon. B) short run. C) ... (Read 43 times)

fahad

  • Hero Member
  • *****
  • Posts: 570
on: Jun 30, 2018
The period of time over which all inputs are variable is the
 A) market horizon.
  B) short run.
  C) calendar year.
  D) long run.

Question 2

How is the writer of an option affected by changes in its stock price?


bblaney

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

If the stock's price comes to exceed the strike price, the writer will have to give up her underlying or buy it on the market when the holder chooses to exercise the call. If the stock's price does not pass the strike price, she keeps the money she received from selling the option she wrote.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

The principle of faunal succession uses animal fossils to tell relative time. The principle of faunal succession uses animal fossils to tell relative time.
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
In early capitalism, children worked alongside adults. At that time, just as today, most street ... In early capitalism, children worked alongside adults. At that time, just as today, most street ...
Apply circular friction and direct pressure to suboccipital muscles one side at a time.Turn head to ... Apply circular friction and direct pressure to suboccipital muscles one side at a time.Turn head to ...
Weak bones cause the spine to collapse over time Weak bones cause the spine to collapse over time
Embryonic Period - 7th week Embryonic Period - 7th week
Video: Mechanisms of capillary exchange

For a complete list of videos, visit our video library