What is the difference between a naked call option and a covered call option? Which one is riskier and why?
What will be an ideal response?
Answer: In a naked call, the option writer does not own the stock against which he/she is writing the option. Should the option be exercised, the writer would have to purchase shares at the market price to cover the call. The potential loss is considered unlimited. In a covered call, the investor writes an option against stock that he/she already owns. This is a very conservative strategy because the worst that can happen is that the investor gives up any capital gains beyond the strike price of the call option.
Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers
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Assume Fleet contributes the capital deficiency. How much cash is available to distribute to the partners?
A partnership is liquidating. The partners share profits and losses equally. After liquidating the assets and paying the liabilities, the partners' capital accounts are as follows:
A) $41,000
B) $57,000
C) $68,000
D) $79,000
The use of technology enables a service desk to handle more incidents and service requests, resolve them more efficiently, and offer more ways for customers to request services.
Answer the following statement true (T) or false (F)
Which of the following is the first element of knowledge needed by a company wanting to pursue total quality management?
a. what the company's customers want b. who the company's customers are c. how the company's processes are designed d. what the components of the company's product are
River Vista Inc enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
a. a limitation-of-liability clause. b. an exculpatory clause. c. a liquidated damages clause. d. a quasi contract