« previous next »

Author Question: The period of time over which all inputs are variable is the A) market horizon. B) short run. C) ... (Read 84 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?

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

Did you know?

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

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Healthier choices can be made when time is taken to read a nutrition label. Healthier choices can be made when time is taken to read a nutrition label.
An overhead camshaft engine equipped with variable valve timing on both the intake and exhaust ... An overhead camshaft engine equipped with variable valve timing on both the intake and exhaust ...
Both the top and bottom pattern have the same frequency. However, the amount of on-time varies. Both the top and bottom pattern have the same frequency. However, the amount of on-time varies.
How to solve a linear system when the variable is in the denominator position (Question 1 of 2) How to solve a linear system when the variable is in the denominator position (Question 1 of 2)
How to solve a linear system when the variable is in the denominator position (Question 2 of 2) How to solve a linear system when the variable is in the denominator position (Question 2 of 2)
Short-wavelength flux is reflected by Earth Short-wavelength flux is reflected by Earth
Video: Appendicitis Animation

For a complete list of videos, visit our video library