At expiration of an option contract, which phrase describes the point at which both calls and puts have the same gross profit?

Answers

Answer 1

The time value is determined by the remaining lifespan of the option, the volatility and the cost of refinancing the underlying asset (interest rates).The intrinsic value of an option is the difference between the actual price of the underlying security and the strike price of the option. 

Answer 2

d) At the money describes the point at which both calls and puts have the same gross profit, at expiration of an option contract.

When both the call and put options are at the money, they effectively have the same intrinsic value. Neither the call nor put will provide any profit at expiration if the market price equals the strike price, meaning their gross profits will be zero.

Let’s break down the key terms:

1. Options Contract: Financial contract granting the buyer the right, but not obligation, to buy or sell an asset at a predetermined price before or at expiration.

2. Call Option: Right to purchase the underlying asset at a specific strike price before expiration.

3. Put Option: Right to sell the underlying asset at the strike price before expiration.

4. In the Money (ITM):

Call option: Market price is above the strike price.Put option: Market price is below the strike price.

5. Out of the Money (OTM):

Call option: Market price is below the strike price.Put option: Market price is above the strike price.

Complete Question:

At expiration of an option contract, which phrase describes the point at which both calls and puts have the same gross profit?

a) out of the money

b) in the money

c) knocked in

d) at the money


Related Questions

The correct order from lowest to highest level of detail of the same program is

Answers

The correct order from lowest to highest level of detail of the same program is programming language, assembly language, and binary. Binary uses a numbers system of 1's and 0's and assembly language is converted into a executable machine code. A programming language is a set of rules and instructions for a computer.

Quality circles accomplish their work by doing which of the following?

Select all that apply.
meeting to discuss problem areas
identifying areas that need improvement
developing suggestions for solutions
implementing changes

Answers

ALL OF THE ABOVE
meeting to discuss problem areas
identifying areas that need improvement 
developing suggestions for solutions 
implementing changes
meets to discuss problem areas
identifies particular areas that need improvement
develops suggestions for solutions

Which type of currency was not used in the united states during its early years?

Answers

According to answers.com its greenbacks

The answer is: Greenbacks

Greenbacks is the slang or street name that is used to describe paper money that we currently use now. During its early years, most people in united states only acknowledge metals such as gold and silvers as a legitimate medium of payments.

ECONOMIC HELP!!!!!!!!
Which of these is MOST LIKELY a result of a high unemployment rate in the United States?

A)
increased revenues

B)
increased demand for consumer goods

C)
increased production of capital goods

D)
greater government expenditures for transfer payments

Answers

D greater government expenditures for transfer payment.

If your gross pay is $678 for the week, and you earned 11% on sales plus a salary of $345, what were your total sales?

Answers

678-345= 333

333*(100/11) =

answer is 3,027.27

Answer:

Total sales = $3,027.272727

                  = $3,027.28               (to 2 decimal places )

Explanation:

Gross Pay                = $678

Salary                       = $345

Let total sales          = x  

Earnings on sales    = 11% of sales = 11% of x

Gross pay                = Salary + 11% of Sales

                  $678     = $345 + (11% of x)

                  $678     = $345 + 11x/100

                  $678     = $345 + 0.11x

Subtract $345 from both sides

      $678 - $345    = $345 - $345+ 0.11x

                  $333    = 0.11x

Divide both sides by the coefficient of x (i.e. 0.11)

          $333/0.1`1    = 0.11x/0.11

    $3,027.272727 = x

                       x      =  $3,027.28              (to 2 decimal places )

Suppose you are a pollster list three questions you would ask to determine

Answers

When designing a survey to understand voting intentions or support for a political candidate, it's crucial to ask direct questions about voting choices, assess respondents' familiarity with candidates' platforms, and understand the factors influencing their decisions. Methodologies like the Pew Research Center's Methods 101 Series can guide crafting effective survey questions.

Designing a survey to collect data about how people plan to vote in an upcoming election or whether they support a specific political candidate involves crafting questions that accurately measure public opinion.

One methodology to ensure this accuracy is by reviewing the Pew Research Center's Methods 101 Series, which provides insights into crafting effective survey questions.

To conceptualize such a survey, questions must not only directly inquire about voting intentions or candidate support but also assess the respondent's knowledge about the electoral subjects, as understanding the context could influence the validity of their responses.

Additionally, the demographic data of participants, such as age, gender, and political affiliation, should be collected to allow for a more nuanced analysis of the results.

Examples of questions might include:

"Which candidate do you plan to vote for in the upcoming election? (Please specify)"

"How familiar are you with the political platforms of the candidates? (Not familiar, Somewhat familiar, Very familiar)"

"Does the candidate's stance on [specific issue] influence your support? (Yes/No)"

These questions aim to gauge not only preference but the depth of understanding and the factors influencing voting decisions, which are crucial for analyzing public opinion accurately.

For converting inputs into outputs, _____ is responsible for creating, assembling, or providing a good or service.

Answers

the answer to this question is Production Function
Production Function basically include all process being done to transform raw materials into a product that could be sold in the market.
Creating refers to designing and planning the overall production process, assembling refers to combining various types of resource to make a product, and providing refers to the distribution of that product to the costumers.

If 10 slices are being produced, the marginal cost of producing one more slice of pizza is:

Answers

10 CENTS because my 2 cents is free 

A website with no spelling mistakes, recent updates, and an author who isn't an expert on the subject is probably okay to use as a source.

Answers

That is not okay to use as a source

What is the main difference between a conceptual model and a physical model?

Answers

a conceptual model is using drawings or plan written on paper and physical model is 3d object showing how something works

Organizational ________ can be exhibited by anyone at any level of an organization

Answers

The missing word is leadership. Organizational leadership is a double engaged administration approach that works towards what is best for people and what is best for a gathering in general at the same time. It is additionally a demeanor and a hard-working attitude that engages a person in any part to lead from the best, center, or base of an association.

_________are places that sell merchandise from a single manufacturer, usually at lower prices than other retailers.

Answers

Whole sailers sells at lower prices

Factory outlets are places that sell merchandise from a single manufacturer, usually at lower prices than other retailers.

Large fire departments with numerous companies have implemented the practice of staging a tactical reserve, called a:

Answers

The answer is rapid intervention team. Rapid intervention team/ dispatch/ crew (RIT/ RID/ RIC), otherwise known as firefighter assist and search team (FAST), is a squad of two or more firefighters devoted only to the search and rescue of other firefighters in anguish. FAST shall have no other operating job during an occurrence.

The information economy embodies the ____________ sector of a nation's economy.

Answers

Hello!

The correct answer for the blank is: Quaternary.

I really hope this helped you out! :)

Production possibilities: 1) the study of how best to allocate scarce resources among competing uses. 2) shows the relationship between price and quantity produced. 3) the alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology. 4) plots the relationship between price and quantity consumed. save

Answers

the alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. in short the production possibility frontier shows the maximum output possibilities for two given goods. It makes the assumption that all inputs are utilized efficiently.

Marvin loves chocolate truffles. as the price of a chocolate truffle increases from $1 to $2 to $3, marvin continues to buy a dozen chocolate truffles every week. marvin's demand for chocolate truffles is

Answers

Increasing at the moment. After a few weeks, when the price becomes unreasonable, I doubt Marvin would want to buy chocolate truffles.

I hope you found this helpful! :)

There are a total of _____ questions in the writing and language section of the psat.

Answers

Answer:44

Explanation:

Answer:

44

Explanation:

APEX

If you are the driver or owner of a vehicle which is in a crash that is your fault, and you are not insured in compliance with the financial responsibility law
a.you will be placed on probation for up to 4 months.
b.you must attend a driver financial responsibility course.
c.you may be required to pay for the damages before your driving privilege is reinstated.

Answers

I believe the answer to your question is C.

Hope I helped! Plz mark brainliest! Have a great day!

The answer is: You may be required to pay for the damages before your driving privilege is reinstated

When you are deemed to be at fault by the court, they will send an evaluator to judge the monetary value that is caused by the accidents. This will determine how much you have yo pay for the public property that you destroy.

On top of that, if the accidents cause the damage to other people's vehicle, you are most likely require to pay for the damages on that vehicle too.

When decision makers carefully and conscientiously execute all six stages of decision making, the decision makers are said to have exercised?

Answers

When decisions are made using the six stages of decision making, the decision maker has exercised rationality. The six steps are intended to make the decision maker slow down their thought process and make the decision based on facts, not on instinct or emotion. This leads to a more rational decision.

What are some of the barriers to good communication?

Answers

The use of jargon. ...
Emotional barriers and taboos. ...
Lack of attention, interest, distractions, or irrelevance to the receiver. ...
Differences in perception and viewpoint.
Physical disabilities such as hearing problems or speech difficulties.

Which piece of information always appears on third party cards?

Answers

Final answer:

The question deals with information on the magnetic strip of third-party cards, where the cardholder's account number always appears. Additional data such as the cardholder's name and expiration date may also be present, and minimal necessary information sharing is urged for security.

Explanation:

The question relates to the type of information that is typically encoded on a magnetic strip found on the back of third-party cards like credit cards and driver's licenses. These strips contain encoded information essential for the authentication and authorization processes when the card is swiped for transactions. The piece of information that always appears on these cards is the cardholder's account number. Additionally, the strip may also contain the cardholder's name, the card's expiration date, and a country code. Security measures are implemented to protect this sensitive data, including electromagnetic induction during the swiping process that reads the encoded information without direct contact.

It's important to only provide the minimum information required by any source when using your card and to be vigilant about how this information is collected, used, and who has access to it. Regular monitoring of your credit history is recommended to check for any red flags indicating potential identity theft.

Mitch is buying candy bars for his friends he wants to give two candy bars to each friend and he wants to have 10 spare bars he can afford 28 candy bars

Answers

So what’s your question?

Answer: 2f + 10 = 28

Explanation:

For Plato users

Consumers buy from amazon when brand website shipping too expensive long

Answers

sdfifguisdfgisdgfids                                           

The stock exchange is based upon the economic laws of what two things

Answers

I'd like to answer this, but I don't understand the stock market. Pretty much Greek to me. But I would think stocks would depend on buyers and sellers and how well a company is doing. If people believe in the future, they will be buying. If the future looks grim, many will be selling. Both greatly effect the health of the market.

The contract to buy and sell real estate has a dates and deadlines section. should these dates be ignored:

Answers

No, because the date is there to help you stay on track 
No because because the dates are to help you stay on track•I️ hope this helped you please can you mark me as the_________?

Practicing material already learned in order to improve retention is referred to as

Answers

In the educational field, this is called homework.  Please mark Brainliest!!!
Hey there,
It is referred to as over-learning.

Hope this helps ^_^

~Top

Which organization works to establish global standards for communications and information exchange?

Answers

The international organization for standardization or ISO works to found global standards for communications and information exchange. Mainly between its activities is the widely recognized ISO/OSI reference model which describes standards for the communication of computers linked by communications networks. The ISO is not an acronym somewhat it is consequent from the greek word ISOS which means equal and is the root word of the prefix ISO. 

A company that is introducing a new product in its final form to a geographically limited market to see how well the product sells and get reactions from potential users is engaged in

Answers

The answer is:  "test marketing" .
____________________________________

A company that is introducing a new product in its final form to a geographically limited market to see how well the product sells and get reactions from potential users is engaged in test marketing.

What is tested marketing?

In the business and marketing worlds, a test market is a region or demographic segment used to assess the viability of a good or service in the mass market before a large-scale roll-out.

Before a larger release, a product or marketing campaign is made accessible on a restricted basis to test markets with the intention of examining consumer reactions.

It's crucial to keep in mind that customers who have been exposed to the product or campaign can unknowingly be a part of a test group.

Therefore, the term is called test marketing.

To learn more about tested marketing, refer to the link:

https://brainly.com/question/7200804

#SPJ5

A conflict management style that involves negotiation is also known as:

Answers

A conflict management style that involves negotiation is also known as Compromising conflict management style. Negotiation means Working with another party to create a situation (resolution) that is fair to all involved parties. Wherever there are people, there always will be conflict. Managers have to deal with conflict in the workplace every day. Conflict management is the ability to be able to identify and handle conflicts sensibly, fairly, and efficiently

Leon’s goal was to save $100 in a year, but he saved $120. What percent of his goal did he reach?

Answers

He reached his goall by 120%

Answer:

120$

Explanation:

Other Questions
Which Greek order is the most decorative? A. Corinthian B. Ionic C. Doric help please! multiply (2.1 x 10^3) x (3.5 x 10^2)A. 7.35 x 10^5 B. 3.6 10^1C. 6.9 x 10^3D. 2.83 x 10^2 What did james madison do to promote religious freedom? Leonora tiene un da muy ocupado (busy). a las ocho de la maana va a la oficina de correos para enviar (send) una carta importante. a las nueve de la maana, va a la biblioteca porque tiene que estudiar para un examen. a las once y media de la maana va al centro comercial porque tiene que trabajar. a las cinco de la tarde leonora y su familia van a la iglesia. a las siete de la noche leonora va a su casa. por qu leonora va a la biblioteca? After a student makes a solution, its temperature rises.Which term describes this process?endothermic chemical reactionexothermic chemical reactionexothermic solution formationendothermic solution formation The table shows five transactions and the resulting account balance in a bank account, except some numbers are missing. Fill the missing numbers What song does otto frank hear stormtroopers singing in 1932 as he comes home from work? "what are the reasons for presidents occupying office without being elected?" Write the hyphen notation of the three isotopes of hydrogen A company has found that its supply function is equal to the square of the price of their product, all divided by three. The market for its products is also related to price. demand is a basic 920 units minus thirty times price, minus a quarter of the square of the price. What is the ideal price of their product, to make sure that there is neither a surplus nor a shortage? How many units will they sell at this price? what did the northwest ordinance outlaw in the northwest territory If dh = 3x-3 and fh=x+7 find the value of x for which defg must be a parallelogram How many moles of potassium chloride are produced from 11.3 g of chlorine? simplify 345a)515b)95c)159 What are three different packing arrangements found in metallic crystals? Which change increases the amount of iron produced in the equation fe3o4(s) 4h2(g) energy? What was the style of Socrates' teaching? Which event in English history came to be known as the Glorious Revolution? the total land area drained by a main river is called the _______________ basin. Steam Workshop Downloader