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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. $27.50.
B. Call options cannot have a negative value, therefore, there is no break-even point.
C. $32.50.
Answer: A
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
What does "back end" mean when referring to a VNX File storage system?
A. Fibre Channel connection to the hosts
B. Storage subsystem
C. NAS clients in the production TCP/IP network
D. Connections to the LCCs, DAEs and physical drives
Answer: B

NEW QUESTION: 3
In the dynamic vNIC creation wizard, why are choices for Protection important?
A. They allow dynamic vNICs to be reserved for fabric failover.
B. They select the primary fabric association for dynamic vNICs.
C. They enable hardware-based failover.
D. They allow reserve vNICs to be allocated out of the spares pool.
Answer: B
Explanation:
Explanation/Reference:
Explanation: