Matt owns 500 shares of IKM stock. The market price of IKM is $51.74. Matt just sold five calls on IKM with a strike price of $50. This is known as
A) writing a naked call.
B) writing a covered call.
C) creating a naked cover.
D) covering a short position.
Answer: B
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Which of the following is true of a product/service differentiation competitive advantage?
a. It tends to be more attractive to top managers because of its durability. b. It provides a shorter-lasting competitive advantage compared to cost competitive advantages. c. It focuses primarily on offering a low priced product or service than that of the competitor. d. It is subject to continual erosion, as opposed to cost competitive advantages.
Global Logistics purchased a new machine on October 20th, 2014 for $1,000,000 on credit. The supplier has offered A&A terms of 2/10, net 45. The current interest rate the bank is offering is 16 percent
(a) Compute the cost of giving up cash discount. (b) Should the firm take or give up the cash discount? (c) What is the effective rate of interest if the firm decides to take the cash discount by borrowing money on a discount basis?