The Profit or Loss on a Long Call at Expiry

question 135

Multiple Choice

The profit or loss on a long call at expiry is equal to:

• A)(maximum of (X - S)or zero)+ option premium
• B)(maximum of (X - S)or zero)- option premium
• C)(maximum of (S - X)or zero)- option premium
• D)(maximum of (S - X)or zero)+ option premium.
• E)Cannot be negative.

Analyze the effects of taxes on market prices and quantity sold, including the impact on consumers and producers.

Grasp the distinction between the statutory and actual incidence (burden) of a tax.

Identify the conditions under which tax burdens majorly fall on either consumers or producers.

Recognize the impact of government interventions like price controls and taxations on market outcomes.

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Definitions:

Mail Fraud

A crime involving the use of postal services to carry out any scheme to fraudulently obtain money or valuables.

Fraudulent Use of Transit

The unauthorized use or manipulation of transportation systems or services for deceptive or unlawful purposes.

False Pretenses

Obtaining property, goods, or services from another by misrepresentation or deceit, typically involving a false statement of fact.

Check Kiting

A form of fraud involving the deliberate issuing of checks from insufficiently funded accounts to temporarily inflate financial balances.