Raise large amounts of capital through the sale of stock

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Reference no: EM131927524

1. A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.50 and buying a six-month put option with a $29 strike price for $4.50. Compute the profit (including the cost) from the spread when the stock price in six months is

(a) $23, (b) $26, and (c) $33.

2. The type of business ownership that has the potential to raise large amounts of capital through the sale of stock is called

a partnership.

a corporation.

a sole proprietorship.

All of the above

Reference no: EM131927524

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