Ask Question
BusinessBusiness
18 December, 06:57

A put writer would be "covered" by: (A) A long call (B) Another short put (C) Cash equal to the strike price multiplied by 100 shares (D) An escrow receipt for 100 shares of the underlying stock

+4
Answers (1)
  1. 18 December, 09:35
    0
    Cash equal to the strike price multiplied by 100 shares

    Answer: Option C.

    Explanation:

    A covered put choice is an alternative to sell where the essayist (short) has adequate money on store, has long identical put, or has a bank ensure letter to "spread" the put whenever practiced by the holder.

    A put choice gives the holder the privilege however not the commitment to sell the offers at a predefined cost during the life of the choice. Recorded as a hard copy or shorting a put choice, the merchant (essayist) of the put choice gives the privilege to the purchaser (holder) to sell a benefit by a specific date at a specific cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A put writer would be "covered" by: (A) A long call (B) Another short put (C) Cash equal to the strike price multiplied by 100 shares (D) ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Serenity, a minor, obtains fruits and vegetables on credit from Virgil at Growers' Market. Later, Serenity disaffirms the purchase. Serenity owes Virgil: a. the reasonable value of the goods. b. the retail value of the goods. c.
Answers (1)
Stacy Hanes is an African-American woman who has recently taken her first job and does not seem to like the work environment at all, Her colleagues put down her ideas at team meetings and refer to them as "stupid.
Answers (1)
Which opening will best capture the reader's attention and interest? a. Sustainability is important to HealthyFoods and our record speaks for itself! b. We are always looking for ways to reduce our impact on the environment. c.
Answers (1)
The conversion of preferred stock into common requires that any excess of the par value of the common shares issued over the carrying amount of the preferred being converted should be:
Answers (1)
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $74,600 and $3,700, respectively. During the year Kincaid reported $208,000 of credit sales.
Answers (2)
New Questions in Business
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
The individual with the highest valuation of the good will win in which of the following auctions? A. Sealed Bid Auction B. English Auction C. Dutch Auction D. All of the above.
Answers (1)
Explain how banks can create money.
Answers (1)
Home » Business » A put writer would be "covered" by: (A) A long call (B) Another short put (C) Cash equal to the strike price multiplied by 100 shares (D) An escrow receipt for 100 shares of the underlying stock
Sign Up Forgot Password?