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"Shorting a call" is better known as writing a naked call. Basically, a naked call is a call on a position you don't hold, and it has unlimited risk--if you get exercised and the strike price plus the premium is lower than the stock price, you must make up the difference out of your margin account--or you'll receive a margin call from your brokerage. Many brokerages won't allow you to write a naked call, and the ones that will demand a very large margin account and a lot of experience in trading options.
There was a demand for a huge number of manual calculations to create tables - many of them for navigational purposes - where similar calculations needed to be repeated many times.
Options are priced using a theoretical model known as a "Black Scholes Model". The black scholes model price options based on a set of mathematical parameters known as the "greeks" which covers the variables that influence options prices. However, this is only a theoretical model because it cannot take into consideration the actual demand and supply condition of specific options in the market. Actual demand and supply most often move the price of an option away from its theoretical value.
Some of the business applications are: (1) Finding the number of ouputs produced to maximize the profit. (2) Calculation of marginal revenue , marginal cost (3) Calculation of marginal average cost (4) Calculating elasticity of demand
difference between elastic and inelastic demand
distinguish between a term security and a demand security
Demand is to ask for something forcibly. Exchange is to trade.
Demand schedule is a tabular representation nd Demand curve is a graphical representation
a demand schedule is a table showing the relationship between the price of a good and the quantity demanded , but a demand curve is a graph showing the relationship between the price of a good and the quantity demanded.
Demand schedule: a list of demand/price equivalencies. It can best be seen as a table with discrete points. Demand function: a continuous function of price-demand interaction. Main difference: schedule is discrete; function is continuous.
a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve
if demand falls due to change in price of commodity its terms in Economics as contraction in demand, and if demand falls due to other reasons its term decrease in demand...
Supply is the amount produced and demand is the amount that is wanted.
peak is when the demand of electric power is very high, and off peak is when the demand is low
Competitive demand is the demand for commodities that offer similar functions to the consumer
aggregate demand curve is the total sum of all the individual demand curves while individual demand curve is the demand made by the single individual.