Calculate the option profit to the trader

Assignment Help Finance Basics
Reference no: EM132692861

It is March and a trader buys 100 August call options (=1 option contract) with a strike price of $27. The stock price is $27.22 and the option price is $4.15. At the expiration, the stock price becomes $30.71. Calculate the option profit to the trader.

Reference no: EM132692861

Questions Cloud

What should be biotech current stock price : If the required rate of return on stocks of firms in this industry is 16% per year, what should be BioTech's current stock price?
Which option will yield the highest rate of return : If the stock price becomes $120 at expiration, which option will yield the highest rate of return (=profit / cost)?
Journalize the entries for February and August : Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value
What is the option profit to the trader : On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $20. The stock price is $21.49 and the option price is
Calculate the option profit to the trader : The stock price is $27.22 and the option price is $4.15. At the expiration, the stock price becomes $30.71. Calculate the option profit to the trader.
Calculate the interest rate on an eight-year : Use the following information to calculate the interest rate on an eight-year bond just issued by Becher Inc.
What is the total amount invested : A marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, What is total amount invested (total paid-in capital) by all stockholders
Determine the dividends per share on each class of stock : The following amounts were distributed as dividends: first year, $36,000; Determine the dividends per share on each class of stock
Compute the dividends per share on each class : During its first four years of operations, the following amounts were distributed as dividends: Compute the dividends per share on each class

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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