« previous next »

Author Question: The period of time over which all inputs are variable is the A) market horizon. B) short run. C) ... (Read 51 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?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Summation of Heart Sounds, Variable S1 Summation of Heart Sounds, Variable S1
During a total solar eclipse, the solar corona can be seen with the naked eye, during the brief peri During a total solar eclipse, the solar corona can be seen with the naked eye, during the brief peri
Embryonic Period Embryonic Period
Physics: Power, Energy and Time Physics: Power, Energy and Time
The TaqMan approach to quantitative real-time PCR (qPCR) The TaqMan approach to quantitative real-time PCR (qPCR)
Time Line for Life’s Origin and Evolution Time Line for Life’s Origin and Evolution
Video: Introduction to Spirometry

For a complete list of videos, visit our video library