Generally, employers must pay both state and federal unemployment taxes. Moreover, employers who lay off workers at a higher frequency pay a much higher unemployment tax rate than employers who maintain their workers. COVID-19-related layoffs may negatively affect employers for purposes of calculating the experience ratings that determine their unemployment tax rates. For a business, the risk from paying unemployment taxes is

Group of answer choices

price risk.

credit risk.

pure risk.

speculative risk.

The exercise price of a six-month XYZ stock call option is $19. The premium of this call option is $1.5. If the stock price on the maturity date is $18, what's the short call profit on maturity? Assume this is a European call option.

Group of answer choices

$2.5

$0.5

$1.5

-$1.5