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You Own a Call Option and Put Option That Both

question 92

Multiple Choice

You own a call option and put option that both have the same exercise price of $50, and their respective prices are $4 and $3. The stock is currently trading at $60. Calculate the dollar return on this strategy.

Discuss how geography and physical barriers contribute to allopatric speciation.
Understand the role of disruptive selection in sympatric speciation.
Illustrate how polyploidy can lead to immediate reproductive isolation and speciation.
Analyze the ecological factors contributing to sympatric and allopatric speciation.

Definitions:

Risk Premium

The extra return expected by an investor for holding a risky asset instead of a risk-free asset.

Expected Return

The average return an investor anticipates on an investment which is uncertain, based on the probable returns.

States of Economy

The various conditions that can describe an economy, including growth, recession, depression, and recovery.

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