Assume that you initiated the short position in stock x

Assignment Help Accounting Basics

Reference no: EM13395077

Assume that you initiated the short position in stock X, selling when the market price was $75 per share. The stock price has fallen to $69 per share.

a. Compute your current profit, and your maximum possible gain and loss

b. Now assume that you buy a put option to protect your position. Your put has a strike price of $69 per share, maturity of 6 months, and the per share premium is $2.95. What is your maximum possible gain and loss with the protective put?

Reference no: EM13395077

Questions Cloud

Find the factors which caused organization to embody this : choose one 1 of the following organizations to research google zappos southwest hewlett packard xerox w.l. gore dupont

Consumer behavior can be stated as activities that people : consumer behavior can be defined as activities that people undertake when obtaining consuming and disposing of products

Explain how much must social responsibility be considered : 1 how much should social responsibility be considered in evaluating and organizations overall performance?2 compare the

Describe the relationship between the debt ratio and : explain the relationship between the debt ratio and

Assume that you initiated the short position in stock x : assume that you initiated the short position in stock x selling when the market price was 75 per share. the stock price

Why is the accuracy of cost allocation so important cite : why is the accuracy of cost allocation so important? cite real-life examples of either successes or failures in cost

Write down a 700- to 1400-word paper explaining the laws : write a 700- to 1400-word paper describing the laws governing legal authority and licensing requirements for private

Results amp discussion did you reject the null hypothesis : create a research hypothesis in your area of study that would be answered using either an independent or dependent

What is the appropriate balance for the allowance for : huron corp. operates in an industry that has a high rate of bad debts. nbspon dec.31 before any year end adjustments

Reviews

Write a Review

Required(*) Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages