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

Economic developments in the North pre-civil war.​

Answers

Answer:

The United States, on the verge of civil war, contained two distinct economies

Colonización de los Estados Unidos

Answers

Answer: Estados Unidos surgió a partir de la colonización británica de América, protagonizada por oleadas de inmigrantes británicos entre los siglos XVII y XVIII fundaron las Trece Colonias en la costa atlántica del subcontinente norteamericano, al este de los Apalaches.

Explanation:

Explain how a boomtown is different from a ghost town.

Answers

One is booming in population (a lot of people), and a ghost town is just as it sounds, no one lives there

Answer: What's the difference? A town that experienced (or is experiencing) a period of rapid growth due to some temporary activity. The mining boomtown she remembered, was now a ghost town. Ghosttown has no English definition

Explanation:

Which were the main goals of Roosevelt's New Deal legislation?

Answers

Answer:

The programs focused on what historians refer to as the "3 R's": relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression.

Explanation:

thank me later

3.
Image 1 Question: Which of the following was a direct result of camel use in North Africa?

Widespread camel domestication led to increasing desertification in the region north of the Sahara.

Camels carried new diseases to North Africa and the Sahara, leading to the eradication of indigenous species.

Horses were no longer needed for trade north of the Sahara.

Camels facilitated trade across the harsh terrain, allowing large caravans to traverse the flourishing new trade routes.
4.
Image 1 Question: Identify the industry that the camel most directly influenced

Manufacturing

Agriculture

Religion

Answers

Answer:

3. Camels facilitated trade across the harsh terrain, allowing large caravans to traverse the flourishing new trade routes.

4. Religion

Explanation:

Camels are able to survive without water for a long period of time and they can survive intense heat, which meant that they could be used to transport goods across the Sahara desert. With camels being used to haul goods, traders were able to go further and further into Africa to trade with more people.

One massive effect of this was the spread of Islam because most of the traders were Arabians and they took the opportunity to spread Islam such that today most of Western and Northern Africa are dominated by the Muslim faith.

One similarity between the laws being challenged in the United States Supreme Court cases of Plessy v. Ferguson (1896) and Korematsu v. United States (1944) is that A) specific groups of people were being targeted based on race or ethnicity B) state laws were declared unconstitutional C) immigrants were relocated to prison camps D) federal laws segregating public transportation were upheld

Answers

Answer:

A) specific groups of people were being targeted based on race or ethnicity

Explanation:

One similarity between the laws being challenged in the United States Supreme Court cases of Plessy v. Ferguson (1896) and Korematsu v. the United States (1944) is that "specific groups of people were being targeted based on race or ethnicity."

The above statement is true because Plessy v. Ferguson (1896) is where the Supreme Court ruled that it is constitutionally right to have racial segregation in as much the segregated facilities were equal in quality.

Similarly, the Korematsu v. the United States (1944) is where the Supreme court ruled that it is constitutionally right to remove the Japanese Americans from the West Coast Military Area during World War II.

WRITE A SMALL PARAGRAPH ABOUT IDAHOS WEATHER DO NOT COPY AND PASTE THE WHOLE PARAGRAPH FROM SAFARI WRITE ABOUT IDAHOS WEATHER THANK YOU IF YOU DO

Answers

Answer:

hkyjsjfjshfjhgjasljlajshljhsfa

Explanation:

gskgkjsdhkjgijdfsjguifajsfgi

Northern idahos weather usually has very cold long winters and shorter warm summers. Winter lasts from around November to February or March. Idaho gets heavy snow. Summer does not usually begin until June and it ends around August or September. Temperature in summer is usually between 70- 100 degrees.

Hope this helps... I live in Idaho so I should know a bit lol. If you need more detail let me know :)

Which statement best summarizes the fall of the Austro-Hungarian Empire
following World War 1?

Answers

The fall of the Austro-Hungarian Empire

following World War 1 was the Military defeats led which internal unrest and the collapse of Austria-Hungary.

What is the fall of the Austro-Hungarian Empire?

The fall of the Austro-Hungarian Empire can be attributed to the defeat of their military by the Allies, because they were not strong enough like some of empires.

Therefore, the fall of Austro-Hungarian Empire was as a result of their weak military which made it to collapse into smaller ethnic states.

Learn more about Austro-Hungary at;

https://brainly.com/question/10545775

#SPJ1


The negative consequences outweighed the benefits of Manifest Destiny.

Answers

Answer:

In conclusion, the benefits of the Westward expansion did not outweigh the negative consequences because there was conflicts created between the Native Americans and there was a drastic increase in the white population.

Explanation:

What were some provisions of the Dred Scott case? Select three responses.
No black person, free or enslaved, could be a US citizen.
All black people were subject to becoming enslaved.
There could be no legal ban on slavery in the territories.
The territories could retain their popular sovereignty.
The Missouri Compromise was unconstitutional.

Answers

Answer:

A No black person, free or enslaved, could be a US citizen.

c. There could be no legal ban on slavery on the territories.

e. The Missouri Compromise was unconstitutional.

Explanation:

Answer:

A

C

E

Explanation:

Got it right on test

Dorothea Dix's Prison Reform Crusade

• Do not put debtors in prison
• Make sure prisoners have enough food
• Do not crowd many prisoners into small spaces


Which choice below best completes this list?

A. Allow prisoners to vote
B. Remove the mentally ill from prisons
C. Offer every prisoner a basic education
D. Require prisoners to attend church services

Answers

Answer:

B. Remove the mentally ill from prisons

Explanation:

The so-called Dorothea Dix's Prison Reform Crusade was a passion and mission to improve the standard of living in United States asylums.

However, she found out that the mentally ill were housed in prisons rather than in asylums.

Therefore, the choice below that would best completes this list is to remove the mentally ill from prisons

did the Pilgrims and the Puritans establish colonies in the New World?
Why

Answers

They did cause they were terrible people who’s land and resource were failing

Can someone PLEASE answer this question. Basically you Analysis the image and answer the questions.

Here are the question:
1. Who created these political cartoons?

2. What WWII event / topic are these pictures referring to? (*hint - If You Give a Pig a Pancake)

3. How are these cartoons similar? List at least

4. How are these cartoons different? List at least 3.

5. Which cartoon had the most symbolism and stood out to you the most? Why?

Answers

Answer:

Do you still need help?

Explanation:

The purpose of Winston Churchill's excerpt was to warn the United State that Europe was threatened by?

Answers

Answer:

The purpose of Winston Churchill's excerpt was to warn the United State that Europe was threatened by the USSR.

Explanation:

The "Iron Curtain Speech" was delivered by Winston Churchill to emphasize the need for the US and Britain to act as peacekeepers for the threat imposed by the USSR. He implored on the two nations to spearhead the need to maintain peace against the power of the communist USSR.

In his now-famous speech, former British Prime Minister Churchill stated "From Stettin in the Baltic to Trieste in the Adriatic, an iron curtain has descended across the Continent." He also went on to express his belief that the Soviet Union's communist stance and desire to expand will "cause new serious difficulties in the British and American zones." He then appealed for "[T]he safety of the world [that] requires a new unity in Europe, from which no nation should be permanently outcast."

Phoenicia did not have its own supply of ivory, so it traded for ivory with other regions, which meant that, for the Phoenicians, ivory was ain)
O
A import.
В. export. .
C. natural resource.
D. impossibility

Answers

A. import

Explanation:

here ya go! hope this helps ya :)

2. How did judicial review increase the power of the Supreme Court?​

Answers

Answer:

The Judicial review increased the power of the Supreme Court by giving all of the power for anything that has to do with cases are given to them to finalize everything.

Judicial Review allows the Supreme Court to take an active role in ensuring that the other branches of government abide by the constitution. Rather, the power to declare laws unconstitutional has been deemed an implied power, derived from Article III and Article VI of the U.S. Constitution.



Explanation:

Have a great rest of your day
#TheWizzer

Hindus believe that the ultimate goal of existence is...

Answers

ultimate spiritual goal of Hinduism.
spiritual of hinduism

During the post-war period, the USSR was able to control Poland and Hungary by

Answers

Is there a story to this

setting up puppet governments there.

The
____forced conquered peoples to pay tribute to the the monarch?

Answers

Hello,

The correct answer is :

Assyrians


Byye and don’t forget I’m proud of you!!<34

Why would the existence of spheres of influence threaten the United States' goals in China? Check all of the boxes that apply.

Answers

Explanation:

The main reason for the creation of areas of influence is that they pose a danger to US objectives in China. If other nations restricted Chinese commerce, the US would have difficulty trading with them.

If China had already been partitioned into sections under foreign rule, the US would have very little influence.

The BIG THREE after WW1

Answers

Answer:

the big three were France, USA, Great Britain

I kinda think that it is because if the person who settled the first permanent spanish mission is people is from the settlers from santa fe um but if not then can you help me out and if you want to help please friend me or contact me UwU

Answers

Answer:

Can't understand !!!!!!!!!!!!!!

Answer: decided that if they were to keep Texas, they must occupy it. ... and settlements provided a stronger hold on Texas than did the French ... Early Spaniards originally named some of Texas's settlements—San Antonio, ... permanent settlement of Europeans in Texas—the mission of Corpus ... When they left Santa Fe, they.

Explanation:

Explain the walking purchase.

Answers

Answer:

Walking Purchase, (Aug 25, 1737 ), land swindle perpetrated by Pennsylvania authorities on the Delaware Indians, who had been in the tribe most friendly to William Penn when he founded the colony in the previous country.

Quien escribio el Compendio de la Doctrina Social de la Iglesia y en que año??

Answers

Answer:

El Compendio de la doctrina social de la Iglesia fue publicado en el año 2004 por el Pontificio Consejo para la Justicia y la Paz en la petición de Juan Pablo II.

Explanation:

yo creo que esto

Question 30 (2 points)
What was urban renewal?
A. policies directed at creating urban centers in Appalachia
B. programs aimed at reducing poverty levels in the city
C. services provided to Native Americans who were willing to relocate to cities
D.the process of returning bracero workers to Mexico

Answers

Explanation:

programs aimed at reducing poverty levels in the city

What is the hijab and how does it link Christians and
Jews to Muslims.

Answers

Answer:

The hijab is a religious veil worn by Muslim women in the presence of any male outside of their immediate family, which usually covers the hair, head and chest. The term can refer to any hair, head, face, or body covering worn by Muslim women that conforms to Islamic standards of modesty.

However, it is not only prescriped in the Qur'an but also in the Bible and in the Jewish Talmud. For example , many painting of the Virgin Mary represent her with a veil covering her head  .

Hope this was helpful and if you need more answers don't hesitate !

Write an essay on how you can apply the concepts of Socrates' philosophy to uplift the present conditions of human lives?

Answers

Answer:

Socrates considered that education should produce practical outcomes that benefit society as a whole. He tried to create an ethical framework based on individual reasoning instead of religious teaching. Human decision, according to Socrates, is inspired by a yearning for pleasure.

Socrates is primarily concerned with establishing two fundamental points: 1) Pleasure is what everyone wants: it is an unqualified good because it is usually the end (goal) of our actions. 2) Satisfaction is not dependent on outside goods, but instead on how those items have been used.

Which guarantees do the Sixth and Eighth Amendments to the Constitution make?

the right of all citizens to keep and bear arms and freedom from illegal searches and seizures conducted without search warrants


the right of arrested persons to remain silent when in custody and the freedom to peacefully assemble and protest the actions of the government


the right to be brought before a judge to decide whether one’s imprisonment is legal and the freedom to file lawsuits based on federal, state, and local statutes


the right of accused persons to be defended by a lawyer in a speedy public trial and freedom from cruel and unusual punishments and excessive bail

Answers

Answer:

the answer is b!

Explanation:

Which of the following is NOT a legal duty of an American citizen?
Serve on juries.
Vote in all elections.
Get an education.
Pay taxes.

Answers

i choose : "get an education"

In Maryland, what were the religious freedoms?
Catholics were persecuted.
Only Protestants could have a church.
O You could go to the church of your choice.

Answers

Answer:

i think its you could go to the church of ur choice since the rule was u have to believe in jesus

Explanation:

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