Why is being long a put option somewhat analogous to being in a short stock position?
Question:
Why is being long a put option somewhat analogous to being in a short stock position?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
A put option like a short stock positi...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Engineering questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
1. Which of the following statements about a call option is false? a. A call option is the right, not the obligation, to buy the underlying asset. b. A call option is in the money if the asset price...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
How can we use these theories to analyze factors which influence the longevity and adaptability of these organizations in changing landscapes?
-
What is the ratio of the shortest wavelength of the Balmer series to the shortest wavelength of the Lyman series?
-
Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph. (a) Give the equation to describe total revenue for x units per year. (b)...
-
Financial statements of iPud Ltd are presented below. Additional information 1. Payables includes $5620 (2025) and $5730 (2023) trade accounts payable; the remainder is accrued expenses. Market...
-
The comparative balance sheet of TorMax Technology, Inc. at December 31, 2010 and 2009, is as follows: An examination of the income statement and the accounting records revealed the following...
-
Differentiate. G'(u) = G(u) = 5u4 - 4u u + 1 15u+20u3 (u+1) Need Help? Read It Submit Answer X
-
What is the main difference between a forward and an option?
-
What is a Bermudan option?
-
For the following exercises, find the reference angle, the quadrant of the terminal side, and the sine and cosine of each angle. If the angle is not one of the angles on the unit circle, use a...
-
Christa Clothing International is a well-known international company headquartered in Blusen City, North Carolina in the United States. Christa specializes in fashion clothing for men and women. In...
-
Suppose the Vehicle class is defined to keep track of vehicles in a household. What kinds of instance data members, variables and constants, would be defined for such Vehicle objects? Do any useful...
-
Given two numbers, the largest divisor among all the integers that divide the two numbers is known as the greatest common divisor. For example, the positive divisors of 36 are \(1,2,3,4,6,9,12,18\),...
-
In 2009, after four decades of rapid growth, China surpassed the US to become the worlds largest car market in number of vehicles sold (Waldmeir, 2010a). China is currently the largest single market...
-
Determine the return value for each of these expressions, assuming the following declaration: String org; org = new String ("American Quarter Horse Association"); A. org.substring (5, 8) *B....
-
What is the difference between a master budget, pro-forma budgets, and a flexible budget?
-
Following is the current balance sheet for a local partnership of doctors: The following questions represent independent situations: a. E is going to invest enough money in this partnership to...
-
What is the value of n, for this diagram, based on a 31/2% interest rate? A = 50 -2-3-4-5-6-7-8-9- n=? 1000
-
Compute the value of J for the diagram, assuming a 10% interest rat 100 100 100 0-i--2-3- -4---5.
-
Compute the value of C for the diagram, assuming a 10% interest rate. 300 200 100 -8
-
1. If the diffusion coefficient for minority carrier holes in the n-region of a pon diode is increased by a factor of 16 then the current in the diode a) Does not change because the current is...
-
Task 1 - Counting Twos.java Write a program that will ask the user to enter an integer and calculate the power of two. Output the number of twos in this number. Input Enter an integer: 5 Enter an...
-
Determine the moment of each of the three forces about point A, counter-clockwise rotation is defined as the positive direction of the moments. Set F, 300 N, F = 380 N, F3= 180 N, 8 = 40 deg, = 30...
Study smarter with the SolutionInn App