« previous next »

Author Question: The period of time over which all inputs are variable is the A) market horizon. B) short run. C) ... (Read 87 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?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
The Genus Homo Through Time The Genus Homo Through Time
Negative feedback control of a regulated variable. Negative feedback control of a regulated variable.
A variable valve timing solenoid being controlled by applying voltage from the PCM. A variable valve timing solenoid being controlled by applying voltage from the PCM.
Generation of diversity by variable V-J joining mechanisms Generation of diversity by variable V-J joining mechanisms
Accumulation of toxicants over time and up the food chain Accumulation of toxicants over time and up the food chain
Video: Ear Virtual Tour Animation

For a complete list of videos, visit our video library