If a General Electric January 20 call option with a strike price of $45 were about to expire and the market price of the underlying GE stock was $51.17, the price of the call option would have to be __________ to eliminate arbitrage opportunities.

Answers

Answer 1

Answer: $51.17

Explanation:

A call option gives the holder the right but not the obligation to buy a stock. They are usually exercised when the underlying stock has a higher price than the price that the call option allows them to buy the underlying stock for. This is called the strike price.

As the option is about to expire here, it should be trading at the same price as the underlying stock or else an arbitrageur could take advantage of it by buying the call option which would enable them to get the stock at $45 when the option expires. They can then sell the stock for $51.17 and make a profit of:

= 51.17 - 45 = $6.17


Related Questions

can someone help me please? -30 points-

*look at the attachment for question *​

Answers

Answer:

The first 2

Explanation:

Legislative powers are detailed in Article I of the Constitution because the thought people would be with a strong executive if they first saw legislative on executive powers. Therefore, was the first branch of the new government. The House of Representatives and the make up the branch. Together, they form the United States Congress.

Answers

Answer:

framers, more comfortable, checks, congress, senate, legislative

Explanation:

Environmental sequel

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can you elaborate please??

Which of the following statements best reflects how the technological changes referenced in the passage have affected the global economy in the 21st century?

O They have reinforced the need for industrial systems and resources.
O They have helped establish a postindustrial, knowledge-based economy.
O They have promoted the shift of industrialization to less-developed nations.
O They have helped older industrial corporations monopolize global markets.

Answers

The correct answer is C. They have promoted the shift of industrialization to less-developed nations.

Explanation

The excerpt talks about the influence that the internet connection has had to reduce barriers in the field of business. In addition, it is explain that now due to the internet connection and digital media, companies do not need to start with large capital, or be multinational to enter the market to compete with large companies, as the author say "even small-scale enterpreneurs can connect directly with customers and suppliers arround the world". From the above, it can be inferred that the changes brought about by technological changes during the 21st century have been C. They have promoted the shift of industrialization to less-developed nations.


In 1852, the famed Cumberland Road, or National Road, was finally
completed. It stretched from Maryland to Illinois, covering nearly
600 miles and five states. How do you think the towns along the
highway benefited from the new traffic? Explain your answer in
paragraph form.

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Answer:

     A government highway constructed from 1811-1852.  The highway stretched from Cumberland, Maryland to Vandalia, Illinois--591 miles.  Due to the War of 1812, construction was delayed.  With help from the states and federal government, it was completed in 1852.   This road allowed faster commute and the creation of a National Market.

Explanation:

Hope this helps?  If more is needed let me know

Which legislation did Theodore Roosevelt sign as president regarding his philosophy of conservation?
the regulation of the drug industry.
the creation of new railroads.
the creation of new national parks.
the regulation of the food industry.

Answers

Answer:

The Creation of New Parks.

Explanation:

Reason being is he was very big on natural resources and working with and using what we get from the land. He also believed that we should use the natural resources that we had while still leaving the land in good condition so that the generations to come after us could benefit from the lands natural resources as well. He believed that is was our duty to be good stewards of what was given to us.

The legislation that Theodore Roosevelt sign as president regarding his philosophy of conservation is the creation of new national parks.

Theodore Roosevelt during his presidency saw the passage of some laws such as the Pure Food and Drug Act, and the Hepburn Act.

Roosevelt in 1901 during his presidency used his authority to establish 150 national forests, 51 federal bird reserves, four national game preserves, five national parks and also 18 national monuments

On April 5, 1933, he signed Executive Order 6101 (Emergency Conservation Work Act) creating the Civilian Conservation Corps (CCC).

Conclusively, The Act handles two vital needs which were unemployment and the repair of environmental damage.

Learn more from

https://brainly.com/question/495241

How did Andrew Jackson refer to the victory of the 1824 election?

Answers

Answer:

How did Andrew Jackson win the election of 1824?

While Andrew Jackson won a plurality of electoral votes and the popular vote in the election of 1824, he lost to John Quincy Adams as the election was deferred to the House of Representatives (by the terms of the Twelfth Amendment to the United States Constitution, a presidential election in which no candidate wins

Explanation:

parafrasis del ambiente democratico​

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Respuesta:

Las relaciones entre democracia y medio ambiente no son pacíficas y, así como la nueva izquierda, nacida al calor de las revueltas de 1968, ha tendido a unir las luchas por la democratización y la resolución de los conflictos ambientales, no debemos olvidar que han existido y existen pensadores y activistas medioambiente que, desde posiciones fundamentalistas o bio-centricas, han despreciado la igualdad y la dignidad de todos los seres humanos.

Explicación:

Esperó te sirva

The supreme court case pollock v. farmers, loan and trust began when

Answers

the court voided portions of the Wilson-Gorman Tariff Act of 1894 that imposed a direct tax on the incomes of American citizens and corporations, thus declaring the federal income tax unconstitutional.

Before World War II, the Catholic Church and Nazi Germany signed an agreement that A. allowed Catholics to worship as long as the Church recognized the Nazi regime. B. denounced communism and the rule of Stalin in the Soviet Union. C. eventually failed , in which Nazi Germany agreed to follow peaceful diplomatic tactics. D. exempted Catholics from service in the German military forces.

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Answer:

diplomatic" (and any subsequent words) was ignored because we limit queries to 32 words.

how did World War 1 affect Americans socially, politically, and economically?

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Answer:

Economic Impact on the United States. World War 1 took the United States out of a recession into a 44 month economic boom. U.S. exports to Europe increased as these countries geared up for War. Later, U.S spending increased as it prepared to enter to War itself.

How did life change socially and economically for Americans during the Great Depression?

Answers

Answer:

Most important War the impact that it had on peoples lives: The Depression brought hardship, homelessness, and hunger to millions. In cities across the country, people lost their jobs, were evicted from their homes and ended up in the streets.

Describe how attitudes toward women changed over the course of Roman history.

Answers

Answer:crazy

Explanation:

Why was Egyptian president Anwar Sadat assassinated?

He favored a two-state solution in Palestine.

He signed a peace treaty with Israel in 1980.

He seized the Suez Canal from the British.

He increased attacks on other Arab nations, such as Libya.

Answers

Answer:

On October 6th 1981, Sadat was assassinated during the annual victory parade held in Cairo to celebrate Egypt's crossing of Suez canal. Islambouli emptied his assault rifle into Sadat's body while in the front of the grandstand, mortally wounding the president.

What did Prudence Crandall do for children in public education?

A
She opened a school for "young ladies" of color.

B
She founded the first American school for girls.

C
She campaigned for public investment in education.

Answers

Answer:

A . She opened a school for "young ladies" of color.

Explanation:

Prudence Crandall was against the discrimination of education of the African American girls. She started the first school for the African American girls in 1833 in Connecticut. She took the initiative of educating the black girls who were not given the opportunity to education because of their color and race. She gained support by many of the anti-slavery leaders. She was ridiculed and was subjected to many harassing consequences because of her step.

An archaeologist studies _____.

the lives of early communities by examining artifacts
the origins of words
the earth, rock forms, and strata
early human culture and development compared to the present day
the development of language

Answers

Answer:

the lives of early communities by examining artifacts

Explanation:

Archaeology is the study that focuses on the past cultures and the way people lived in the past. It studies the human cultures in the past through artifacts, scripts and remains. The Archaeologists studies and examines these sources and build conclusions about their researches. These researches helps them in identifying the pattern of living the lives in the past. The ancient remains are subjected towards researches and human past are studied trough them.

At which Jewish holiday would someone eat matzo at a Seder?

Exodus
Yom Kippur
Rosh Hashanah
Passover

Answers

The Jewish would eat matzo on the day of Passover

Answer:

Its Passover (D)

Explanation:

;

What was the purpose of the Domesday Book?
a to combine history and legend
b to explain Christian beliefs and the logic behind them
c to survey every town in England for tax purposes
d to tell the story of a spiritual journey

Answers

Answer:

C

Explanation:

Domesday Book is the oldest government record held in The National Archives. In fact there are two Domesday Books – Little Domesday and Great Domesday, which together contain a great deal of information about England in the 11th century. In 1086, King William I (the Conqueror) wanted to find out about all the land in his new kingdom: who owned which property, who else lived there, how much the land was worth and therefore how much tax he could charge, so he sent official government inspectors around England to ask questions in local courts.

identify which of the 3 freedoms guaranteed by the bill of rights are the most important to you. Explain your reasoning in 1-2 paragraphs.
freedom of speech, press, or religion?

Answers

Answer:

Freedom of speech because we all should have the freedom to keep and give our opinion to others and us as well! if we don't have this right then we can't even say anything and keep our opinion!


Labor unions were organizations that helped
1. workers bargain with employers for better working conditions
2. management increase profits by suggesting innovative production methods
3. farmers develop steam-driven machines to plant and harvest their crops
4. merchants sell new goods that were produced in the factories

Answers

Answer:

1 Workers bargain with employers for better working conditions

Explanation:

I need help please!!!!!

Answers

high humidity, cold temp, and high pressure? if not change the amount of pressure

Explain why compromises were important to the process of being able to write the U.S.

Answers

Answer:

The Significance of the Great Compromise was that: The Great Compromise ensured the continuance of the Constitutional Convention. The Great Compromise established the Senate and the House of Representatives and allowed for them to work efficiently. ... The Great Compromise was included in the United States Constitution.

What are 3 real world examples about how the Great Depression is still relevant today.

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Answer:

The Great Depression still affect us in many ways today. America expanded government intervention into new areas of social and economic affairs and the creation of more social assistance agencies . The government took on greater roles on the everyday social and economic life of people.

The stock market lost almost 90% of its value between 1929 and 1933.

Around 11,000 banks failed during the Great Depression, leaving many with no savings.

In 1929, unemployment was around 3%.

Great Depression, worldwide economic downturn that began in 1929 and lasted until about 1939. ... Although it originated in the United States, the Great Depression caused drastic declines in output, severe unemployment, and acute deflation in almost every country of the world.

Explanation:

Answer:

The Great Depression still affect us in many ways today. America expanded government intervention into new areas of social and economic affairs and the creation of more social assistance agencies . The government took on greater roles on the everyday social and economic life of people.

Which statement describes the U.S. relationship with Iraq during the 1990s?

A. The United States kept thousands of troops stationed in Iraq to maintain a stable government.
B. The United States gave Iraq a large amount of military aid to help the country fight against Iran.
C. The United States cut off diplomatic ties and trade relations with Iraq to protest its poor human-rights record.
D. The United States maintained economic sanctions against Iraq to prevent it from becoming a threat to peace in the region.

Answers

Answer:

c is the right answer to your question

A is the correct answer

If a person was born in North America, would they be called North American?
because that is the continent were they born like Europeans are called because they born in Europe?

Answers

Typically no, if someone was born in North America people would usually specify by saying United States, Canada or Mexico.

Answer:

Yes, if you were born in North America, you could call yourself a North American.

Explanation:

Many people born in North America identify themselves with their country rather than their continent. They would say "I'm a Canadian", "I'm American", or "I'm from Mexico" when asked where they are from. However, it is still correct to call yourself a North American if you are born in this continent.

"In your opinion, did trickle-down economics help the United States economy recover from a dismal decade in the 1970s?"

Answers

Answer:

No

Explanation:

In simple words, the trickle down economics actually worsened the situations. The trickle-down hypothesis begins with a reduction in corporate income taxes as well as less regulations.

The administration collects more tax income as a consequence of the broader economic growth—enough to cover the cost of the initial tax reductions for the affluent and businesses.

What was the economic effect of World War II?
----
A. Decreased wages
B. increased cnsumer goods
C. increased numbers of working women
D. Decreased employment
----

Answers

Answer: B.



Explaintion:

Answer:

B. Consumer goods

Explanation:

Since the war demanded for massive work forces to be utilized, it caused the production of goods to increase at massive rates. The unemployment rate dipped to around 10% after just a few days. Remember that even though women were put on the assembly lines in the place of men (they were sent to fight the war), increasing the amount of working women, it is not the economic effect of World War II, as it is rather related to a social effect.

Army and naval bases in Texas became important
training centers for the U.S. army.
Is it economic or social

Answers

Answer:

Texans have a long and proud military tradition, and  the economic benefits Texas derives from the presence of these facilities in our state.  Fort Bliss, the U.S. Army's second-largest installation in geographic terms​,  The base began turning out freshly minted pilots in 1941

Explanation:

7
Incorrect
Select the correct answer.
Whose political philosophy is most clearly reflected in the Declaration of Independence?
Х
A.
Thomas Hobbes
B. King John
C.
William Blackstone
D. John Locke
E.
Charles-Louis Montesquieu
Next

Answers

D, the answer is John Locke
The answer is D it’s

Why would a craftsperson join a guild?

Answers

A guild was the association of craftsmen or sometimes merchants similar to a professional association but with elements of a secret society. Craftsmen joined a guild to protect their common interests and trade or craft secrets.

Answer:

To ensure consistent quality standards.

Explanation:

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