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NEW QUESTION: 1
A trader has purchased a put with an exercise price of $45 and has also bought the underlying stock when its price was $50 a share. Which of the following statements is CORRECT?
A. If the stock price falls, the trader will lose the premium paid on the option.
B. If the stock price rises, the trader will lose the premium paid and $5 per share.
C. If the stock price falls, the trader's maximum loss will equal $5 per share plus the premium paid.
Answer: C
Explanation:
A put is exercised when the price of the underlying falls. In this case, the trader will exercise the put if the stock price were to fall below $45. The gain upon exercise will offset the loss on the stock.
However, the put will not be exercised until the stock price reaches 45. Thus, the first part of the loss equal to $5 (=50 - 45) will be borne by the trader. He also loses the premium paid for the option upon exercise.

NEW QUESTION: 2
ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?
A. The term is a penalty clause.
B. The term is a warranty.
C. The term is a condition.
D. The term is an in nominate term.
Answer: C

NEW QUESTION: 3

A. Option B
B. Option A
C. Option C
D. Option D
Answer: D
Explanation:
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NEW QUESTION: 4
Welche Daten können direkt über die PP-PDC-Schnittstelle (Plant Data Collection) gebucht werden?
A. Wartungsbenachrichtigungen
B. Warenprobleme
C. Bestätigungen
D. Wareneingänge
Answer: C