Suppose that put options on a stock with strike prices $30 and $35 cost $4 and $7, respectively. How can the options be used to create (a) a bull spread (buy and sell a put) and (b) a bear spread (sell and buy a put)

Answers

Answer 1

Answer:

To create a bull spread buy the $30 put and sell the $35 put

To create a bear spread you can sell the $30 put and buy the $35 put

Explanation:

a. A bull spread is a strategy that is used by traders in options trading to gain from small rise in prices. It involves buying at a lower strike price and selling at a higher strike price.

The outcome is:

Stock price >= $35 will give a payoff of 0 and a profit of 3

$30≤ Stock price <$35 will give payoff of (stock price - $35) and a profit of (stock price - 32)

Stock price <$30 with payoff of -5 and a profit of -2

b. A bear spread is when a trader buys a contract at a higher strike price and sells at a lower strike price. This is used to maximise profit as price of the stock declines.

The outcome is:

Stock price >= $35 will give a payoff of 0 and a profit of -3

$30≤ Stock price <$35 will give payoff of ($35 -stock price) and a profit of ($32 - stock price)

Stock price <$30 with payoff of 5 and a profit of 2


Related Questions

How do the poems "Children's Story" and "Dulce Et Decorum Est" illustrate the "danger of a single story"

Answers

Answer:

Check the answer below

Explanation:

The "danger of a single story" is a ted talk by Chimamanda Adichie in 2009. The talk centers on the danger inherent in hearing just a single story about an individual or a group. She says the story may either be incomplete or untrue and it may influence one's attitude towards such an individual or group.

"Dulce Et Decorum Est" is a poem written by Wilfred Owen, a young soldier during the first world war. The subject of the poem, according to Owen, is war and the pity of war. Owen, in this poem, describes the different hazards that are encountered by soldiers in war. Owen addresses readers who do not have a complete knowledge of war and as a result of this feel that war is not as difficult as it is portrayed. This is similar to what is addressed by Adichie in the "danger of single story". These people referred to by Owen arrived at such a quick conclusion because they do not have access to the different stories of war.

"Children's Story" is a poetic song by Slick Rick that tells the story of a seventeen year old boy who was misled by his friend into robbery and brigandage. The boy got so deep into this act that he robbed a cop which led to his capture. The author ended by saying,

"The cops shot the kid, I still hear him scream

This ain't funny so don't ya dare laugh

Just another case 'bout the wrong path

Straight 'n narrow or yo' soul gets cast"

The writer describes this case as one of several cases and that it is not aimed at making the listener/reader laugh. This is an illustration of the "danger of a single story" because hearing just a single story as seen in this poem brings about the wrong response and attitude.

10 invetebrate animals name​

Answers

An Invertebrate is an animal without a backbone. Some examples are:

wasps, termites, black widow spider, earthworms, centepides, sponges, honeybee, beetles, butterflies, moths

Answer:

1. Crab, 2. Butterfly, 3. Jellyfish, 4. Praying Mantis, 5. Ladybug, 6. Snails, 7. Octopus, 8. Sea sponges and Sea Anemone, 9. Spiders, 10. Oysters

Explanation:

All animals without a backbone are considered invertebrate animals. I hope this helped!

A synonym for Muslims or those who embrace the Islam religion

Answers

Answer:

Islamist, Islamic believer, pro-Islam, mohammedan

Explanation:

1

2

3

4

5

TIME REMAINING

47:04

In "The Gift of the Magi" O. Henry most likely uses the irony of the couple's gifts to express the theme that

O

expensive gifts are sometimes a mistake.

love and sacrifice for others is the highest virtue

material goods usually increase in value over time.

it is best to retain one's most prized possessions

Save and Exit

Answers

Answer:

Love and sacrifice for others is the highest virtue.

Explanation:

In the story "The Gift of the Magi," O. Henry describes a couple who want to give beautiful Christmas presents to each other, but lack the money to do so. Therefore, they trade their most valuable possessions in order to afford them. However, the items they traded were essential to their presents, making the exchange ineffective and ironic. Nevertheless, O. Henry suggests that despite this, the two lovers are extremely wise, as they value the "right" things in life. This supports the main theme of the story, which is that love and sacrifice for others is the highest virtue.

why does the author use the word unadept in this line

Answers

Answer:

please include the sentence you are referring to

Explanation:

ASAP! GIVING BRAINLIEST! Please read the question THEN answer CORRECTLY! NO guessing. I say no guessing because people usually guess on my questions.

Answers

Answer:

I and II are rewritten correctly. The last sentence puts a period in the middle, making it incoherent. The first two sentences use commas effectively and make the sentence flow well.

Explanation:

Answer:

A. l and ll only

Explanation:

l. Just by reading this statement, you can determine that this is now a sentence, and not a sentence fragment. This is because the sentence makes sense, and as a result, is able to stand by itself without having another sentence elaborate onto it.

ll. This fixed statement is now a sentence as well, and not a sentence fragment. This is because following what had been said above, this sentence is almost exactly like the first, however, it has a word "later," switched around. This means it is also a sentence.

lll. Reading these two statements, you can tell that this is a sentence fragment. This is because the sentence has been split unnecessarily, and doesn't make sense. If you were to take one of the fragments away, the other wouldn't make sense.

This means that we can determine that answer choice "A. l and ll only," are correct.

You grew up learning that nodding your head means "yes," and most people you know do the same; however, you recently learned that people in some cultures nod their heads when they mean to say "no." Nodding your head would thus be characterized as a(n):___________

Answers

Answer: it depends on the question if the question is in negative u will say no and if the answer is in positive u will answer yes.

Explanation:

So this will be an adjective phrase

Which sentence correctly uses a colon to introduce a list? Brittany enjoys many sports, such as: basketball, ice hockey, and softball. The students going on the trip are: Drew, Julio, Aasha, and Felicity. For dinner, I think that we should make: roasted chicken, mashed potatoes, and green beans. My school offers four science classes: chemistry, biology, physics, and earth science.

Answers

Answer:

My school offers four science classes: chemistry, biology, physics, and earth science.

Explanation:

To introduce a list, the colon always follows a noun, not a verb.

The sentence that correctly uses a colon to introduce a list is D. My school offers four science classes: chemistry, biology, physics, and earth science.

A colon simply means a punctuation mark that consist of two equally sized dots that are placed one above the other. It often precedes an explanation or list.

From the options given, the sentence that correctly uses a colon to introduce a list is "My school offers four science classes: chemistry, biology, physics, and earth science".

Learn more about colon on:

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Please answer my questions about Identify the following tenses.

Answers

Answer:

Explanation:

1.present tense

2.past tense

3.past tense

4.past tense

5.future tense.

6present tense

7.past tense

8.past tense

9present tense

10.past tense

How does the narrator affect the reader’s understanding of details in Gentleman of Río en Medio?

Answers

Answer:I believe b

Explanation:

Answer:

I dont know the answer but I can confirm its not B

Explanation:

Read the passage from the opinion of the court in Dred Scott v. Sandford, written by Justice Taney.

The question then arises, whether the provisions of the Constitution, in relation to the personal rights and privileges to which the citizen of a State should be entitled, embraced the negro African race, at that time in this country, or who might afterwards be imported, who had then or should afterwards be made free in any State; and to put it in the power of a single State to make him a citizen of the United States, and endue him with the full rights of citizenship in every other State without their consent? Does the Constitution of the United States act upon him whenever he shall be made free under the laws of a State, and raised there to the rank of a citizen, and immediately clothe him with all the privileges of a citizen in every other State, and in its own courts?

Which statement could best be used as an effective counterclaim to this claim?

States should decide who is free and who is not.
A person who is free in one state cannot be a citizen.
Taney cannot deny Scott citizenship because it is a federal right.
Other states should have a say over one state's decision

Answers

Answer:

The answer is C. Taney cannot deny Scott citizenship because it's a federal right.

Explanation:

Answer:

C)

Explanation:

Just got it right on Edg

Which best explains why Baldwin uses the word immutable

Answers

Porque es inmune a algo?

Explanation:

To which persons are we supposed to submit our assignments to

Answers

I'm assuming this is a multiple choice question that goes. "To which person are we supposed to submit our assignments?"

Which best describes the structure of this sentence.

A.This sentence places the subject at the beginining and the verb at the end?

B.This sentence uses parallel subjects and verbs

C. This sentence places the object before the verb

D.This sentence has a subject followed by a verb and an object.

The answer would be: C. This sentence places the object before the verb

Answer:

C. This sentence places the object before the verb

Explanation:

What does Obama claim is a similarity between the students listening to his speech and his own experience as a student?

Answers

Answer:

Obama claimed that like the students,

1. He had to wake at the very early hours of the morning to take lessons from his mother.

2. He suffered challenges that would have limited him, such as being raised by a single mom who was not really financially buoyant.

Explanation:

In his speech at Wakefield High School, Virginia, USA, which students from other schools tied in to, President Obama encouraged the students to work hard at their studies. He noted that most of the students would rather prefer being on their beds during summer, than having to put in the extra efforts to come to school. This was an experience he had when he was younger and had to wake as early as 4:30 a.m to get some extra lessons from his mother who could not afford to send him to American schools at that time.

Also, he agreed that like the students he had challenges that would have made him quit, such as, being raised by a single mom who struggled to take care of him when his father left the family at his early age of two. He therefore, urged the students to never let any challenges they faced, limit their growth.

.Applications are mostly written to __________.Immersive Reader
(1 Point)
a) children
b) relatives
c) people of authority

Answers

Answer:

C)

Explanation:

Hope this helps

Answer:

the answer is c i think

The lights dimmed and the curtains opened. I felt like I was going to throw up. Why had I ever thought this was a good idea?...essay

Answers

Answer:

The lights dimmed and the curtains opened. I felt like I was going to throw up. Why had I ever thought this was a good idea?

Sneaking out to go for a party I was forbidden from attending was really not my plan especially after the tongue lash I received from my strict dad about going for parties in which "teenagers smoked pot".

Nevertheless, I was determined to go for the party, I was probably the only girl in my class that wasn't at that party and already my best friend had called me to ask why I haven't showed up yet.

I carefully raised the window of my room, looked down and gauged the distance from the window to the floor, I decided it was too risky so I opted to gently slide down to the ground even though I would probably scald my hands.

I wore my favorite gown, the one I had apparently overgrown, which showed enough of my thighs.

Every little sound I made seemed like it was magnified with a megaphone so I was extra cautious.

As I began my descent, I heard a light switch turn on but I kept going down.

Just as I got to the ground and was about to meet my best friend at the rendezvous, I heard a voice that chilled me to my bones, "And where do you think you're going?"

Please answer this correctly

Answers

Answer:

I say form a new hypothesis

Explanation:

Answer:

Form a new hypothesis OR Report your results.

Explanation:

Forming a new hypothesis would be the appropriate answer since, in the scientific method, when your results do not match your hypothesis, you should report them, and then try again with a new hypothesis.  

Humanism can best be described as blank

Answers

Choices:

an exploration of the biology of human beings

an emphasis on life in the present

a focus on the afterlife

an interest in the diversity of our species

Correct Answer:

an emphasis on life in the present

You have already read "Should He Get Paid?" and you have submitted your essay plan. Use your graphic organizer to write your essay in complete sentences. You need at least 500 words for your essay. Double space between paragraphs because you are writing on a computer and in a textbox.

Answers

Answer:

"Women are physically weaker hence they should be paid less."

This statement is trying to establish the physical as well as mental superiority of men at large. It implies that physical strength should alone be the criteria for wages rather than skills and efficiency. Since ages, women have been considered emotionally and physically weak as compared to males. Hence, they are not given enough opportunities to even prove their calibre. This gender stereotyping is used as a shield to pay women less for the same job that is done by males.

Explanation:

Indian army does not have people of a certain rank. There are officers and soldiers at all levels. There pay obviously differs. Similarly, not all politicians earn the same. The pay of the prime minister differs from that of an MLA. Therefore, it is meaningless to argue whether army people should be paid more than politicians. The prime minister will obviously be paid more than an ordinary soldier while a General will be paid more than an MLA.

Please answer this correctly

Answers

Answer: They both hunt with bow and arrows

Explanation:

In a Venn Diagram, you can find the common area by looking at the center. Therefore, the common thing between them is hunting with bow and arrows.

If you found my answer helpful, give it a five-star rating and a thanks! It would really mean a lot!

Even a brainliest if you feel like it! ;)

What idea does the author convey by describing the steps of
Wallace's task?
First
Next
Finally
A microscope
revealed red dye
and orange felt
A special mochine
detected materials
from the movie's
ero
The team found
silver sequins and
clear beads
painted red.
Idea
?
Examining
evidence requires
careful and
detailed work
Restonng old
move props
requires time and
patience
Working for a
museum requires
skills and
expertise
Catching a thiet
requires special
tools and
materials.
ID
? K​

Answers

Answer:

Examining evidence requires careful and detailed work.

I took the quiz.

The idea does the author convey by describing the steps of Wallace's task is examining evidence requires careful and detailed work. Thus, option first is correct.

What is Wallace's task?

Wallace had given himself two objectives. One was the restoration of Balliol, which he failed to accomplish. He also failed in the second mission, which was to expel the English from his homeland.

When Wallace died, there was little chance of a Balliol restoration, and Edward's hold on Scotland was firm. The insurrection of Robert Bruce, who was the foresworn rebel to Edward that Wallace really wasn't, was the result of Bruce's dynastic aspirations, not Wallace's.

The author conveys the concept that evaluating evidence necessitates thorough and detailed labor by outlining the phases of Wallace's assignment. As a result, option one is correct.

Learn more about Wallace here:

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How would you describe your own philosophy of leadership?

Answers

I believe leadership is important in order to maintain order in a society.

Suppose Rachel wants to read more about the spaghetti trees. She would find most of the

information

A

In a book about plant life near the volcanoes of Alaska

B

In a book about April Fools news stories

In a book about ancient Roman celebrations for changing seasons

D

in a book about Scottish April Fools traditions

Answers

Answer:

B . In a book about April Fools news stories .

Explanation:

The news about the harvesting of spaghetti by a family in Switzerland was broadcasted by the BBC on April Fool's Day of 1957. While the item spaghetti was relatively unknown in among the British during that time, most news viewers approached the BBC asking about the planting of such trees.

So, if Rachel wants to read more about the spaghetti tree, she should look for the information in a book about April Fools’ news stories.

Thus, the correct answer is option B.  

Amber prefers to date men who are 20 years her senior. Although the women Jerome dates are approximately his age, they seem uncannily similar to his mother in some way. A psychoanalyst might view Amber's "Daddy" issues and Jerome's "Mommy" issues as reflecting fixation at the_____stage.

Answers

Answer:

- Phallic

Explanation:

A psychoanalyst would reflect Amber's and Jerome's issues as displaying fixation at the 'phallic stage' as they display an exhibitionistic and sexually aggressive tendency. Amber has developed the Electra complex(sexual attraction and affection towards male parent or similar) while Jerome develops the Oedipus complex(sexual attraction and love for the female parent) in Freudian terms.

The Phallic stage is the third stage in Freud's theory of psychosexual development. In this stage, the child develops an erotic attraction towards the opposite sex parent and stands as a rival to the same-sex parent. In this case, Jerome is dating the women who are like his mother while Amber dates men of her father's age.

ASAP! GIVING BRAINLIEST! Please read the question THEN answer CORRECTLY! NO guessing. I say no guessing because people usually guess on my questions.

Answers

Answer:

B

Explanation:

Subordinate clauses will often begin with subordinating conjunctions, which are words that link dependent clauses to independent clauses, such as for, as, since, therefore, hence, consequently, though, due to, provided that, because, unless, once, while, when, whenever, where, wherever, before, and after.

// have a great day //

Answer:

B. When you eat fish

Explanation:

It's subordinate (or dependent) because it cannot stand on its own as a sentence.

We would entreat you, great Sir, have a care for the gods' courtesy; Zeus will avenge the unoffending guest.' He answered this from his brute chest, unmoved 'You are a ninny, or else you come from the other end of nowhere, telling me, mind the gods! We Cyclopes care not a whistle for your thundering Zeus or all the gods in bliss; we have more force by far. How does this excerpt prove that Odysseus causes his crew’s demise?

Answers

Answer:

Explanation  :By revealing his ignorant assumptions excerpt proved that odysseus causes his crews demise

Answer:

d

Explanation:

Combine the following sentences using appropriate conjunctions to have just one sentence.

a) The task is unpleasant. c) Some people wear gloves when they attempt it.

b) The task is cleaning the bathroom. d) The gloves are made of rubber.

Answers

Answer:

A. Cleaning the bathroom is an unpleasent task.

B. Some people wear gloves when they clean, they are made of rubber.

Answer: The task of cleaning the bathroom is unpleasant, so some people wear rubber gloves when they attempt it.

Explanation:

Sentences a and b easily combine without a conjunction, and sentences c and d also easily combine. To put them all together into one sentence, so is appropriate because we're talking about a reason for doing something.

pls I need help
solve the sentece who marked in blue

Answers

Answer:

Isn't she going to invite Dan to the party?

At the moment we're studying French literature

Look the train's coming!

The Earth goes around the Sun

I think the last one is "Do you know my teacher?" I'm not too sure

Explanation:

Answer:

Isnt she going to invite Dan to the party?

At the movement we're studying French Literature

Look! The train's coming.

The earth goes round the sun

I think the last one is now you know my teacher? I cant figure it out either

Explanation:

Which of these are subjects that are not worthy of comparison?


Bicycling versus running for cardiovascular health


Bicycling versus different types of transportation


Driving versus bicycling to work


Driving versus taking public transportation to work

Answers

Answer:

bicycling vs different types of transportation

Explanation:

I would say this is the answer because the rest are comparing with two different things and this one is comparing bicycling to transportation which bycicling is a type of transportation

"Bicycling versus different types of transportation." these are the subject that are not worthy of comparison. The correct option is option (2).

This is because "different types of transportation" is a broad category that can encompass various modes of transportation, such as cars, buses, trains, planes, etc. Bicycling, on the other hand, is a specific mode of transportation.

Comparing bicycling to different types of transportation as a whole might not provide a specific or focused comparison since each mode of transportation has its own unique characteristics, benefits, and considerations.

In the other examples, the subjects are more specific and focused, making them more suitable for direct comparison in terms of their respective benefits, drawbacks, or suitability for a particular purpose (such as cardiovascular health or commuting to work).

Therefore, "Bicycling versus different types of transportation." is a subject that is not worthy of comparison. The correct option is option (2).

To know more about the comparison:

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What did Enkai use to make his three sons?
A. the sky
B. cows
C. the earth
D. love

Answers

Answer:

D

Explanation:

Love is the answer that's what enkai used to make his three sons

Answer:

Love

Explanation:

I took edge quiz and got it correct.

Hope this helps out.

Other Questions
what number is to be multiplied with 1/3 to get 1/21 Write in standard formiii)0.0000574 A synonym for Muslims or those who embrace the Islam religion 5) Horatio Reyes earns 3.625% interest on his account. If his principal is$6000 and he deposits $150 into the account every 6 days, how much totalinterest will Horatio earn after 30 days? * Could use help with the first or second one please! P Sung borrowed money from his parents over the last three days. This is represented by the negative values in the table. What is the total of the values? What is the average of the values? Navid has $72 in her savings account. Each week she saves $24. When will navid have the total savings of $288 write an equation you can use to solve the problem. Translate (11, 3) 8 units up and 14 units leftWhats the answer 1. what___ advice she gave usa. so good b. such good c. a good d. good2.my dog as well as my cats ___twice a day.a. eat b. eats c.has eaten d. have writen3. when i came into the class . i realized i knew ___.a. them all b. all tham c. they all d. all of them4. " i'm sorry about that" - "_____"a. that's right b. of course c. it's ok d. you're welcome what type of solutions does this equation have WHY YOU WOULD LIKE TO BE ON ONE OF MARCO POLO'S TRAVELS. The length of a window in Andrew's house is 4 feet and its height is 3 feet.What is the diagonal length of the window?O A) 2 ftO C 8 ftO B) 5 ft.O D) 12 ft. Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 86,000 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 430,000 units; third quarter, 455,000 units; and fourth quarter, 247,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. PART A: How does Takeis understanding of his internment develop over time? You borrowed $30,000 to finance the education expenses for your senior year of college at the beginning of your senior year. The loan will be paid off over five years and the first installment will be due a year later. The loan carriers an interest rate of 7% per year and is to be repaid in equal annual installments over the next five years. Suppose you want to negotiate with the bank to defer the first loan installment until the end of year 2. (But you still desire to make five equal installments at 7% interest.) If the bank wishes to earn the same profit, what should be the new annual installment An angle is bisected, forming two new angles. If the original angle had a measure of 14 degrees, what is the measure of each new angle? Write this equation c + 25/ 100c as a coefficient fraction PLZ HELP !!! Really Apreciate In 3-5 sentences, evaluate if the United States has been a leader in the global economy in recent decades. A circular flower bed is 15 m in diameter and has a circular sidewalk around it that is 3 m wide. Find the area of the sidewalk in square meters. Use 3.14 for pi . A volleyball is an example of a____a0.