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NEW QUESTION: 1
An investor buys shares of ABC Corp. at $30 and immediately writes a call on them. If the call carries a premium of $2.5 and its exercise price is $30, at what price of ABC shares will this investor break-even?
A. $32.50.
B. $27.50.
C. Call options cannot have a negative value, therefore, there is no break-even point.
Answer: B
Explanation:
A call is at the money when its exercise price is equal to the current price of the asset. In this case, both the exercise price and the asset price is $30.
A covered call writer refers to an investor who owns the underlying asset and simultaneously sells (or writes) a call option. If the investor is writing the call, he will receive a premium of $2.50.
Should the asset price close above $30 before expiration, the writer of the call will have to deliver his stock. He loses the stock, but walks away with the premium he made.
On the other hand, if the stock price closes below $30, the writer will not be called upon to deliver the stock. However, the dropping stock price implies that he is losing value on the stock. If the stock price drops to $27.50, he has lost $2.50 on his stock; but since he made $2.50 selling the call in the beginning, he breaks even. Should the stock price drop below $27.50, his losses will offset any money he made selling the call. Hence, $27.50 is the break-even point.

NEW QUESTION: 2
Refer to the Exhibit.

An administrator is looking at Recent Events under the Infrastructure tab for successful snapshot creation events as shown in the exhibit:

The administrator has created several snapshots successfully.
Based on the exhibit, why are those events not displayed?
A. Snapshot creation events do not display in Recent Events.
B. The Event types should be set to Warnings.
C. There is a Filter set to display only Errors.
D. The Event types should be set to Informational notices.
Answer: D

NEW QUESTION: 3
How can you ensure that the Account Name is unique?
A. Use the VLOOKUP operator in a validation rule for the account name
B. Use the HLOOKUP operator in a validation rule for the account name
C. Use an APEX Trigger
D. Edit Account Name field and select Unique Checkbox
Answer: A


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