Explain How No Feasible Solution Is Recognized When Using the Simplex

question 30

Essay

Explain how no feasible solution is recognized when using the simplex algorithm.

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Definitions:

Exercise Price

The price at which an option holder can buy or sell the underlying asset.

Money Spread

The difference between two prices or rates, often used to describe the gap between bid and ask prices in financial markets.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other assets at a predetermined price within a set time frame.

Covered Call

An options strategy where an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.