Consider Portfolio A: long 1 American put on a stock with strike price and expiration at T; short 1 American call on the same stock with the same strike and expiration date; and long 1 share of stock (a) If you are long portfolio A and the call is exercised, show that you will have at least K dollars plus the value of the put at time T, no matter when the call is exercised
(b) If you are long portfolio A, show that you are guaranteed a payoff of at least K at time T. Conclude that
Hint: Draw timeline from 0 to T. Plot the different cash flows under different scenarios. When adding up, don't forget TVM.

According to the law of demand, there is an inverse relationship between price and quantity demanded. that is, the demand curve for goods and services slopes downward. why?

Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?

Fractional reserve banking which of the following statements about fractional reserve banking are correct? check all that apply. fractional reserve banking allows banks to create money through the lending process. fractional reserve banking does not allow banks to hold excess reserves. fractional reserve banking allows banks to create additional wealth by lending some reserves. fractional reserve banking relies on everyone not withdrawing their money at the same time.