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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. Call options cannot have a negative value, therefore, there is no break-even point.
B. $32.50.
C. $27.50.
Answer: C
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
How is traffic directed to a 6RD tunnel interface from the native IPv6 Internet?
A. Traffic is routed to the 6RD gateway of the ISP and encapsulated over IPv4 to the tunnel interface
B. Traffic is routed to the nearest public relay and encapsulated over IPv4 to the tunnel interface
C. Traffic is routed to the nearest public gateway and encapsulated over IPv4 to the tunnel interface
D. Traffic is sent encapsulated in IPv4 from the native IPv6 host directly to the tunnel interface
Answer: D

NEW QUESTION: 3
Manual replication of saved images and configurations from the master MSM64i to the slave MSM64i on
the BlackDiamond 6804 is done with the synchronize command.
However execution of this command does not replicate the run-time configuration.
You must use the save configuration command to store the run-time configuration first.
A. False
B. True
Answer: B

NEW QUESTION: 4
Which four size drives are available for the Cisco UCS Invicta? (Choose four.)
A. 120 GB
B. 440 GB
C. 140 GB
D. 960 GB
E. 220 GB
F. 480 GB
G. 240 GB
Answer: A,D,F,G
Explanation:
Reference: http://www.cisco.com/c/dam/en/us/products/collateral/servers-unified-computing/ucsfamily-poster.pdf (See the Page #02, 1st Table, 2nd Column).

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