When One Buys a Cash Instrument, for Example 100 Shares

question 392

Multiple Choice

When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends) . If share are purchased at $50 and the price appreciated to $75, we have ________ on a mark-to-mark basis.

• A) Made $2500
• B) Lost $2500
• C) None of these

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Definitions:

Spatial Summation

Addition of one graded potential to another that occur close in space.

Membrane

A selective barrier that allows some substances to pass while excluding others, fundamental to cellular function and structure.

Impulses

Impulses are sudden urges to act or rapid electrical discharges that travel along nerve fibers, facilitating communication between different parts of the body.

Stretch-Activated Channels

Ion channels that open in response to mechanical deformation of the cell membrane, playing a role in various physiological processes.