Call options on a stock are available with strike prices of $15, $17.5 and $20 and expiration dates in three months. Their prices are $4, $2 and $0.5 respectively. Explain how the options can be used to create a butterfly spread. Construct a table showing how profit varies with stock price for the butterfly spread for four possible price ranges.
Answers
The Butterfly Spread is an options trading approach that consists of a combination of a bull spread and a bear spread in which the investor uses three strike prices, buying a call or put option at each price.
The purpose of the Butterfly Spread is to profit from the options’ underlying security remaining within a particular price range.
The call option on a stock is available with strike prices of $15, $17.5, and $20, as well as expiration dates in three months, with prices of $4, $2, and $0.5, respectively.
The investor may construct a Butterfly Spread by purchasing one call option with a strike price of $15, one call option with a strike price of $20, and two call options with a strike price of $17.5.
Here is how Butterfly Spread's profit changes with the stock price at the expiration date.
Range of Stock Prices Payoff ($15 Call) Payoff ($17.5 Call) Payoff ($20 Call) Payoff (Total)15 to 17.5 $2.5 $-1 $0 $1.517.5 to 18.75 $2.5 $1.25 $0 $3.7518.75 to 20 $2.5 $2.5 $0 $5
More than $20 $2.5 $2.5 $0 $5
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Related Questions
Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $88,000. However, the building has a $48,000 note payable that will be assumed by the partnership. Smart is investing $36,000 cash. The balance of Maxwell's Capital account will be:
Answers
A partnership is an association between two or more people who share the profits and losses of a business venture.
To begin a partnership, the business partners must make contributions in the form of assets, which are called capital. Maxwell and Smart are forming a partnership, and they are both contributing to the partnership in different ways: Maxwell is investing a building that has a market value of $88,000, which will be used by the partnership for its operations.
However, the building has a $48,000 note payable that will be assumed by the partnership. As a result, the building's net value to the partnership is $88,000 - $48,000 = $40,000. Therefore, Maxwell's capital contribution is $40,000.Smart is investing $36,000 cash.
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digital finance platforms, mobile payments, digital asset management, blockchain technology, cryptography. Define each word and use each term in a sentence.
Answers
Explanation:
Digital finance platforms: Online platforms that provide financial services such as banking, investing, and lending.
Sentence: Digital finance platforms like Robinhood and Acorns have made investing more accessible to a wider range of people.
Mobile payments: Transactions that are completed using a mobile device, such as a smartphone or tablet.
Sentence: Mobile payments have become increasingly popular due to their convenience and ease of use.
Digital asset management: The process of organizing, storing, and retrieving digital files such as images, videos, and documents.
Sentence: Digital asset management software can help businesses keep track of their digital files more efficiently.
Blockchain technology: A decentralized system of digital ledgers that record transactions in a secure and transparent manner.
Sentence: Blockchain technology is often used in cryptocurrency transactions to ensure security and transparency.
Cryptography: The practice of using mathematical algorithms to secure and protect information.
Sentence: Encryption is a common form of cryptography used to protect sensitive data from unauthorized access
Which group is legally responsible for implementing
protection and controls that ensure your workplace
meets safety standards?
A. Employers
B. Unions
C. Employees
D. Government
Answers
Answer:
A
Explanation:
Answer:
It SHOULD be employers but i may be wrong... if i'm not CAN I PLES HAVE BRAINLYIEST
Explanation:
Also, if i'm right there is no need to thank me unless you want too
i will give brainiest to the answer that is right
Answers
Answer:
D. 14.99%
Explanation:
Electrum Electronics is planning its annual company sales meeting. The team in charge of the planning consists of members from several different offices. They need to have a conversation about creating the agenda for the sales meeting. Which communication channel should they use?
Answers
The best channel to be use is a conference call since the company need to have a conversation about creating the agenda for the sales meeting.
What is a communication channel?A communication channel refers to a various medium of information through which you can send a message are sent to the intended audience.
In conclusion, since the company need to have a conversation about creating the agenda for the sales meeting, the best channel to be use is a conference call
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assume that the government places a tax on the buyers of televisions, and the demand curve decreases. what is the price without the tax, and what prices do the consumers pay and producers receive after the tax is imposed? drag the labels to the corresponding dotted gray lines on the graph.
Answers
When the curves of the market's demand and supply meet, the equilibrium state exists without taxation. Here, the equilibrium quantity of television and the equilibrium price of television without taxes are Q1.
What is Equilibrium Price?A state of economic equilibrium is one in which the values of economic variables will not change in the absence of external influences and economic forces like supply and demand are balanced.
By solving the demand and supply function (Qa – bP = x + yP), it can be determined. When supply and demand are equal, the equation can be solved to find an equilibrium price.
Equation given below:
The demand curve for televisions will now shift leftward from D1 to D2 as a result of the tax on television buyers. At point C, the new demand curve meets the supply curve, where Ps denotes the price paid by sellers. At point B, the corresponding line cuts the initial demand curve, D1, which denotes the price paid by buyers following the imposition of tax, or Pb.
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Image of Graph attached below:
PLS NEED HELP IM BEHIND BAD
Answers
Answer:
The first answer
Explanation:
Just took it
You deposit $1000 now and you want the account to have a value as close to $8870 as possible in year 20. Assume the account earns interest at 10% per year. The year in which you must make another deposit of $1000 is
Answers
We may utilise the idea of compound interest to determine the year in which you need to make a further deposit of $1,000 to reach a target account balance of $8870 in year 20.
A = P(1 + r)^n A is the value of a future account. initial down payment, P r = periodical interest rate n = the number of cycles We can rewrite the calculation as follows if the starting deposit is $1,000, the interest rate is 10% annually, and we wish to reach an account value of $8870 in year 20: 8870 = 1000(1 + 0.10)^20 When we simplify the equation, we obtain: (1.10)^20 = 8.87 Using the 20th root from each side, we discover: 1.10 ≈ 1.455 We may now determine the year in which you must submit another. deposit: Year = 20 - 1 ≈ 19 In order to have an account value as near to $8870 as possible in year 20, you must make an additional deposit of $1,000 in year 19.
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To deliberately initiate culture change at company is an uphill struggle. Most employees tend to return to familiar ways of doing business. To succeed, executives need to
a. model the desired change over a period of at least six months and replace any senior executive who is not fully committed.
b. create a sense of urgency, model the changes that they want, and show commitment to the new culture.
c. create a sense of urgency, model the desired change, and lay off all employees who aren’t enthusiastic about the change.
Answers
The executives need to create a sense of urgency, model the changes that they want, and show commitment to the new culture.
In public policy, the phrase "cultural shift" is used to indicate how society or an institution is evolving. A cultural change is one that is meant to result from a shift in the traditions that a society follows at any particular moment. These modifications could be beneficial or harmful to society. The executives must instill a sense of urgency, set an example for the changes they want to see, and show a commitment to the new culture if they are to successfully initiate deliberate culture change at their organization. When this occurs, society typically introduces new cultural features, behavior patterns, and social conventions.
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The period of time that is ideal to achieve the success of a new product is the:
a. Moment.
b. Window of opportunity.
c. Momentito.
d. Launch window.
Answers
Firms often lunch products periodically. The period of time that is ideal to achieve the success of a new product is the Launch window.
What is product launch windows?Most firms often have a narrow product launch windows. In this type of window, there is a limited product life cycles.
Organizations due to the fact that they known the consequences behind missing the optimum point for a new product to be launch, they often take a the right and proactive steps toward the timing of product introductions to the market.
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"What a given group of people appreciates" are their ___________. A. Cultural contexts b. Culture shock c. Cultural education d. Cultural values Please select the best answer from the choices provided A B C D
Answers
Answer:
d. Cultural values
Explanation:
Cultural values are the values and norms that are followed by a distinct society or a group of people. In other terms, values and norms developed within the society to form its basis are said to be the cultural values. The people believe, follow, and appreciate the values. They help in defining the ways of living and leading the life. The behavior, nature, and thinking of the society is influenced or structured as per the cultural values.
Answer:
D
Explanation:
I just took the assignment
If you know the answer plz help me out
Answers
Answer:
o Location
Explanation:
o Location
To avoid debt, a new business owner should have enough projected revenue to cover expences for the first
A) 6 months
B) year
C) 2 years
D) 5 years
⚠️THIS IS FOR SCHOOL. NO TROLL ANSWERS OR LESS YOU WILL BE REPORTED.⚠️
Answers
Answer:
b) a year
Explanation:
Sherman, inc. Manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Sherman has two activities: machining, which is applied at the rate of $2 per machine hour, and finishing, which is applied at the rate of $20 per batch. This month, sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw?
Answers
The correct option is B, This month, sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. The gross profit for one chainsaw is $27.
Direct material ( per unit ) = $ 10
Direct labour. ( Per unit ) = $ 3
Therefore manufacturing cost s = 40 batches * $ 20 + 1000 * $ 2 + $ 10* 200 + $ 3 * 200
= 5400
Per unit cost = 5400/200
= $27
Gross profit is the difference between the revenue generated from sales and the cost of goods sold (COGS). It represents the money a company earns before subtracting operating expenses, interest, taxes, and other costs. Gross profit is a key financial metric that indicates the efficiency of a company's production and pricing strategy.
Gross profit is an important metric for businesses because it provides insight into the profitability of their operations. A high gross profit margin indicates that a company is able to produce and sell goods at a cost that is significantly lower than their selling price, which is a positive sign of financial health. Conversely, a low gross profit margin suggests that a company may need to adjust its pricing or cost structure to remain competitive in the market.
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Complete Question:-
Sherman, inc. Manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Sherman has two activities: machining, which is applied at the rate of $2 per machine hour, and finishing, which is applied at the rate of $20 per batch. This month, sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw?
a. $13
b. $27
c. $30
d. $14
a country assessment reviews a country's economic situation and politics to determine how much risk to employees, property, and investment exists for firms doing business there. true or false
Answers
The statement “a country assessment reviews a country's economic situation and politics to determine how much risk to employees, property, and investment exists for firms doing business there” is true because it is a report that summarizes the development of the nation.
A Country Assessment is a report that summarizes the economic, political, and social development of a nation. It is used to determine the risk to employees, property, and investment in doing business in the country.
In order to conduct a country assessment, the assessment should consider current economic conditions, political instability as well as any other conditions like legal and banking system, tax implications, etc. which could cause problems for a company that wishes to do business there.
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How does American style differ from Japanese style? Japanese style is identified as casually elegant, often using very luxurious fabrics while American style is noted for being chic, sophisticated, and smart. Japanese style is identified as casually elegant, often using very luxurious fabrics while American style is noted for being chic, sophisticated, and smart. American style is identified as casual, athletic, and clean-cut while Japanese style is noted for having complicated cutting and structure. American style is identified as casual, athletic, and clean-cut while Japanese style is noted for having complicated cutting and structure. American style is identified as casually elegant, often using very luxurious fabrics while Japanese style is noted for being chic, sophisticated, and smart. American style is identified as casually elegant, often using very luxurious fabrics while Japanese style is noted for being chic, sophisticated, and smart. Japanese style is identified as casual, athletic, and clean-cut while American style is noted for having complicated cutting and structure.
Answers
Answer:
American style is identified as casual, and ethic and clean cut while japanese style is considered poorly and has been noted for having complicated cutting and structure
Explantion:
got it right on Edge 2022
If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answers
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
Choose the option that best matches the descriptions given.
Exchanging a good or service for money is called:
Answers
Exchanging a good or service for money is called Bartering .
What is Bartering ?A straightforward idea underlies bartering: Two parties bargain to assess the relative worth of their goods and services, then offer them to one another in an equal trade.
Bartering is a system of exchange in trade where parties engage in direct exchanges of one commodity or service for another without utilizing a means of exchange like money.
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3. When you find an error on a credit report, what are 2 things to do?
Answers
Answer:
If you've spotted an error on one of your credit reports, you should take immediate steps to correct the inaccuracy.
-Send a letter to the credit bureau.
-Determine if you should contact the data furnisher as well.
Explanation:
okay?
If you are selling a shirt for $20 and your total costs were $10, your markup in dollars is $10. What is the markup percentage ?
Answers
Good luck hope this helps
name two methods used to measure inequality of income in a country
Answers
The most commonly used inequality measure are the Gini coefficient ( based on Lorenz curve ) and the percentile or share ratios. This measures try to capture overall dispersion of income; how were they tend to people different leavles of importantance on the bottom middle and top end of distribution .
I hope it is helpful for you .
Spam: Those obnoxious emails that come in trying to sell you something
Company Annual Report : Sent to all shareholders, tells how wonderful the company is
L.L Bean Catalog: The catalog for outdoor gear, apparel and footwear that is delivered to your home
Blue suits/ white shirts: Uniform of IBM personnel calling on customers,
Mr. Plaid Coat: He greets you as you walk into the car dealership
Budweiser Clydesdales: Spokeshorses for major beer brand commercials
McDonald's Monopoly: Game that the hamburger chain runs periodically
The Gecko and Cavemen: Promoters of a large insurance company
BUy one/get one free: Joseph A. Bank's deal of the day on suits
Going green: The newspaper runs a speical interest story about how a local business is becoming more environmentally friendly.
Promotional Mix Elements This activity is important because firms must communicate with customers for marketing to occur. Marketing managers use one more of the five promotional elements to communicate with customers: advertising, personal selling, public relations, sales pro and direct marketing. The goal of this exercise is to demonstrate your understanding of the differences between the five promotional elements. Roll over each promotional example to reveal its description, then drop the example onto the proper promotional category. - Spam - Company Annual Report - L.L.Bean Catalog - Blue suits/white shirts - Mr. Plaid Coat - Budweiser Clydesdales - McDonald's Monopoly - The Gecko and Cavemen - Buy one get one free - Going green Advertising Personal Selling Public Relations Sales Promotion Direct Marketing
Answers
The five promotional elements are advertising, personal selling, public relations, sales promotion, and direct marketing. Each element plays a role in communicating with customers and marketing a product or service.
1. Advertising: This involves promoting a product or service through various channels like TV, radio, print, or online ads. Examples include Budweiser Clydesdales, McDonald's Monopoly, and The Gecko and Cavemen.
2. Personal Selling: This involves direct interaction between a sales representative and a customer. Examples include Blue suits/white shirts (IBM personnel) and Mr. Plaid Coat (car dealership greeter).
3. Public Relations: This focuses on creating a positive image and maintaining good relationships with the public. Examples include Going Green (special interest story) and Company Annual Report.
4. Sales Promotion: This consists of offering incentives or discounts to encourage customers to purchase products or services. Examples include Buy one/get one free (Joseph A. Bank's deal) and McDonald's Monopoly.
5. Direct Marketing: This involves directly reaching out to customers through channels like email, mail, or telemarketing. Examples include Spam (obnoxious emails) and L.L.Bean Catalog (delivered to your home).
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Joe's company is looking to make a number of improvements. The firm would like to maximize potential volume and reserved instance (RI) discounts across multiple accounts and also apply service control policies on member accounts. Which service or tool can be used to gain these benefits
Answers
The service or tool that could be used for gaining the benefits should be AWS Orgs.
The information related to AWS Orgs is as follows:
AWS Organization should be an account management service. In this, there are multiple AWS accounts that should be consolidated for developing and managing. As an organization administrator, the accounts should be developed and the existing accounts should be invited for joining the organization.Therefore we can conclude that the service or tool that could be used for gaining the benefits should be AWS Orgs.
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In the cpi, goods and services are weighted according to.
Answers
Answer:
A consumer price index (CPI) is usually calculated as a weighted average of the price change of the goods and services covered by the index.
Explanation:
The weights are meant to reflect the relative importance of the goods and services measured by their shares in total consumption of household.
A recent high school graduate is researching ways she can pay for her college education. She has received three small scholarships, but still needs to pay for
most of the tuition herself. Which of these options may be available to help her pay for her education? Select all that apply.
A. mortgage loan
B. Perkins loan
C. private loan
D. Stafford loan
E. payday loan
E business loan
Answers
Answer:
C and D
Explanation:
My expertise is sucking d1ck #Po4n⭐4life
Select the correct answer.
Jesse launched a cheaper variant of her high-performing dishwashing liquid, anticipating similar success. Which strategy has Jesse made use of?
1. product differentiation
2. brand extension
Note: I narrowed it down to these two answers and I will provide Plato’s definitions to these words given. Im leaning towards 1 considering the product would need to be smtn similar using the same brand to be 2 (aka a shampoos company introduced dishwashing liquid). I did post this question before but I’m unable to delete it oops.
Answers
Answer:
product differentiation
Explanation:
i got it right on test
Apple want to ensure their products continue to produce a positive cash flow. They are considering 2 options for their
iPod product range's product life cycle. Justify which option Apple should choose (9 Marks)
A-Use extension strategies to extend the product's lifecycle.
B-Decline
Answers
Answer:
The Product Life Cycle
Every product goes through the various life cycle phases of introduction, growth, maturity and decline.
Key Points
Depending on its current stage in the product life cycle, a product will have different marketing, financing, manufacturing, purchasing and human resource requirements.
In the market introduction stage (following product development ), the product is released on to the market.
Sales are low and costs are high in the market introduction stage, thus, no profits are made. There is little to no competition and demand must be created through heavy promotion.
Key Terms
decline stage: when a product is not predicted to continue to be successful or upgraded
product life cycle: The process wherein a product is introduced to a market, grows in popularity, and is then removed as demand drops gradually to zero.
maturity stage: when a product is no longer in the growth stage, but not yet in the decline stage
Product Life Cycle: Overview
The product life cycle (PLC) describes the life of a product in the market with respect to business/commercial costs and sales measures. It proceeds through multiple phases, involves many professional disciplines and requires a multitude of skills, tools and processes.
This is not to say that product lives cannot be extended – there are many good examples of this – but rather, each product has a ‘natural’ life through which it is expected to pass.
The stages of the product life cycle are:
Introduction
Growth
Maturity
Decline
PLC management makes these three assumptions:
Products have a limited life and, thus, every product has a life cycle.
Product sales pass through distinct stages, each of which poses different challenges, problems and opportunities to its parent company.
Products will have different marketing, financing, manufacturing, purchasing and human resource requirements at the various stages of its life cycle.
The product life cycle begins with the introduction stage (see ). Just because a product successfully completes the launch stage and starts its life cycle, the company cannot take its success for granted.
how does the entry of new coffeehouses affect the profits of existing coffeehouses?
Answers
The entry of new coffeehouses into a market can have a negative impact on the profits of existing coffeehouses.
What is the reason?With more competition, customers have more options to choose from, leading to a potential loss of customers for existing coffeehouses. This can lead to a decrease in revenue and profits.
However, the impact of new coffeehouses on existing ones depends on factors such as location, pricing, and quality of products and services. If an existing coffeehouse has a strong brand, loyal customer base, and competitive pricing, it may be able to withstand the competition and maintain its profits.
Ultimately, the success of existing coffeehouses in the face of new competition depends on their ability to differentiate themselves and offer unique value to customers.
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Janis owns a hair salon. This week, she made a flyer that offered new customers a 10 percent discount and posted it prominently on the salon’s front door. What aspect of marketing BEST describes the discount Janis is offering? (
1 point) Responses
a.) a promotion
b.) an advertisement
c.) public relations message
D.) a referral program
Answers
The part of marketing that BEST characterises the deal Janis is providing is a promotion.(option a)
How would you define marketing?Marketing refers to the act of discovering, developing, and providing value to satisfy a target market's needs in terms of products and services, which may also involve choosing a target audience.
To generate interest in a company's goods or services, marketing's primary goal is to attract customers. This is accomplished by market research, analysis, and consideration of a company's ideal clients' interests, as well as by luring them in with messaging that would be instructive and beneficial to the target market.
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When Blu-Ray disc players were new, they could cost around $1,000 and there were a limited number of discs available that would play on them. Stef and Garth waited, concerned with limited availability of discs and wishing for more choices in the market. By the time they purchased a Blu-Ray disc player, sales had leveled off and prices had declined significantly. Stef and Garth were part of the ________ diffusion of innovation group.
Answers
In being concerned about the Blu-Ray players and only adopting them late, Stef and Garth can be classified as part of the Late Majority diffusion of innovation group.
The Diffusion of Innovation Theory posits that there are different stages to adopting new technology such as:
Innovators - these are the first to get a product. They show little skepticism and are willing to try new things. Early Adopters - these are the second to get a product and are typically young and adventurous Early Majority - these are the third to get a product and do so when the product is in fashion Late Majority - these ones get the product when it is out of fashion and is cheaper because they were quite skeptical about it.Stef and Garth are therefore part of the late majority because they only got the disc players after they were out of fashion because they had initial skepticism.
In conclusion, Stef and Garth are part of the late majority.
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