Ask Question
BusinessBusiness
27 February, 08:29

The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasing. unlimited. None of the options are correct. equal to the call premium. limited.

+1
Answers (1)
  1. 27 February, 10:01
    0
    The correct answer will be Option A (unlimited).

    Explanation:

    The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited. Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.

    Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasing. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Omkara, a furniture manufacturer, contracts with foam gnome for $50,000 worth of foam, which omkara will use for making ten sofas she has agreed to make for dukeâs furniture.
Answers (1)
The delivery of medical care in preindustrial America was governed mainly by: A. free-market conditions. B. professionalization of medical care. C. high barriers to entry. D. collusion among providers.
Answers (1)
Sales of services, $100,000, of which $30,000 was on credit. collected on accounts receivable, $27,300. issued shares of common stock in exchange for $10,000 in cash. paid salaries, $50,000 (of which $9,000 was for salaries payable).
Answers (1)
A florist is buying a number of motorcycles to expand its delivery service. These will cost $ 79 comma 000 but are expected to increase profits by $ 3 comma 000 per month over the next four years. What is the payback period in this case?
Answers (1)
All fees and costs associated with the booking of a hotel room reservation for a consumer need to be disclosed in which of the following settings/instances?
Answers (1)
New Questions in Business
A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better. a. True. b.
Answers (1)
In a print advertisement, items used to identify the sponsor of the ad, such as the company logo or USP, are referred to as ___. a. brand elements. b. subheads. c. headlines. d. copy elements. e. advertising sponsorship.
Answers (1)
Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will produce an estimated 110000 units over its useful life. Estimated salvage value at the end of its useful life is $3600.
Answers (1)
Citicorp buys a call option on Euro (contract size is Euro 2,000,000) at a premium of $0.02 per Euro. If the exercise price is $0.59 and the spot price of the mark at date of expiration is $0.60, what is Citicorp's profit (loss) on the call option
Answers (1)
The principle of utility can be summarized as A. always pursue your own self-interest. B. do unto others as you would have them do unto you. C. do whatever is most useful in the circumstances. D. maximize overall well-being.
Answers (1)
Home » Business » The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasing. unlimited. None of the options are correct. equal to the call premium. limited.
Sign Up Forgot Password?