Calculate gain-loss that you will realize on investment

Assignment Help Finance Basics
Reference no: EM133119020

You purchase one Apple Tree Inc July 100 call contract for a premium of $6.36. You hold the option until the expiration date when Apple Tree stock sells for $128.30 per share. Calculate gain/loss that you will realize on this investment. Remember that the size of the option contract is 100.

Loss should be entered with minus sign.

Round the answer to two decimal places.

Reference no: EM133119020

Questions Cloud

What will the outcome be for operating income : The variable cost per unit increases by 15%, and all other factors remain the same, what will the outcome be for operating income
Bond portfolio management strategies : What are the two main types of passive bond portfolio management strategies?
Managing a bond portfolio : How does bond immunization work and how does that strategy differ from a cash-matching approach to managing a bond portfolio?
What is the net present value of this project : The project will cost $100,000. It will generate an after-tax net cash flow of $60,000 one year. What is the net present value of this project
Calculate gain-loss that you will realize on investment : You purchase one Apple Tree Inc July 100 call contract for a premium of $6.36. You hold the option until the expiration date when Apple Tree stock sells for $12
By how much will its operating income increase : If the company's sales volume increases by 30% next year, all other factors remaining the same, by how much will its operating income increase
What amount of indirect costs are acceptable to make switch : Google Cloud costs $35,000 annually. What amount of indirect costs are acceptable to make the switch to Google Cloud worthwhile
Find total of itemized deductions : Tito and Tessa have gathered all the information to file their joint 2022 income tax return. They calculated their total income to be $95,000. Adjustments to in
How much must be removed from each board : Upon? measuring, he finds they are 121516 ?feet, 1318 ?feet, 13 ?feet, and 121316 feet. How much must be removed from each board to get 1058 foot boards

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the possible reasons for ipo underpricing

How does a rights offering differ from a shelf offering? - What are the possible reasons for IPO underpricing? -What is the empirical evidence on the long-run performance of IPOs?

  Subject to the corporate income tax

1. Which of the following statements is CORRECT?

  Professional cost management organizations

Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work would they do?

  Discuss the truth in lending act

Discuss the Truth in Lending Act and what role it places in financial and regulatory reports requirements in regards to funds acquisition strategies. What are various important terms which must be disclosed and their meaning?

  What would be the worth today

Recently, the city of London was looking for a site on which to build a new airport. One location would have involved demolishing the 12th-century Church.

  What is the project profitability index

The project's initial investment is $31409 and the firm's weighted average cost of capital 9.7 per cent. What is the project's profitability index?

  How will you decide which department should get equipment

Imagine that you are the administrator of a nonprofit community hospital. You have been approached by medical staff from two different departments.

  What interest rate are you charging your friend

(Solving for r in compound interest) You lend a friend $10,000, for which your friend will repay you $27,027 at the end of 5 years.

  Investment in the stock of the original firm

The common stock and debt of Android Corp. are valued at $56 million and $36 million, respectively. Investors currently require a 14% return on the common stock

  What is the company wacc

Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6.

  What is the probability of default for the new customer

What is the probability of default for the new customer would make the firm break even when granting credit?

  What is the value of the skating rink

The cost of capital for the skating rink is 13.39 percent. What is the value of the skating rink?

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd