Consider a bearish option strategy of buying one 50 strike

Assignment Help Finance Basics
Reference no: EM13568836

Consider a bearish option strategy of buying one $50 strike put for $7, selling two $42 strike puts for $4 each, and buying one $37 put for $2. All options have the same maturity. Calculate the final profit (P/L) per share of the strategy if the underlying is trading at $33 at expiration.

A. $1 per share

B. $2 per share

C. $3 per share

D. $4 per share

Reference no: EM13568836

Questions Cloud

Dee brewery issued 35000000 of bonds on 7100 the bonds have : dee brewery issued 35000000 of bonds on 7100. the bonds have a term of 10 years with an 8 interest rate. interest is
An investor sells a june 2008 call of abc limited with a : an investor sells a june 2008 call of abc limited with a strike price of usd 45 for usd 3 and buys a june 2008 call of
The bondstreet company sells medical supplies to hospitals : the bondstreet company sells medical supplies to hospitals clinics and doctors offices. harris amp carnahan uses an erp
Palmer corp is considering a project which has the : palmer corp is considering a project which has the following incremental operating cash flows. if the firm wacc is
Consider a bearish option strategy of buying one 50 strike : consider a bearish option strategy of buying one 50 strike put for 7 selling two 42 strike puts for 4 each and buying
Beta inc had incurred overhead of 316500 and had produced : nbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp
Which of the following statements is correctr egarding the : which of the following statements is correctr egarding the effects of interest rate shift on fixed-income portfolios
During 2010 jat company purchased trading securities as a : during 2010 jat company purchased trading securities as a short-term investment. the costs of the securities and their
Good writing is a significant expectation in a doctoral : 75 words apa formatsummarize these resources in one sentences each.good writing is a significant expectation in a

Reviews

Write a Review

Finance Basics Questions & Answers

  Make up an organization capital structure

What components make up an organization's capital structure? How may an organization go about developing its optimal capital structure?

  Discuss some benefits and pitfalls of global investing

Discuss some benefits and pitfalls of global investing

  Its profit margin on sales is 6 and 40 of earnings will be

at year-end 2010 bertin inc.s total assets were 1.2 million and its accounts payable were 375000. sales which in 2010

  The futures price of corn is 200 the contracts are for

p1. the futures price of corn is 2.00. the contracts are for 10000 bushels so a contract is worth 20000. the margin

  Multiple choice questionsnbspusing bond basics1nbsp which

multiple choice questionsnbspusing bond basics.1.nbsp which of the following bonds is sold by a corporation at a

  A portfolio has 4600 invested in stock x what is the

a portfolio has4600 invested in stock x and5200 invested in stock z.what is the expected return on the portfolio if the

  To begin select a company of your choice it may be the

to begin select a company of your choice. it may be the company you work for a company that you have worked for in the

  Discuss how the cost of capital is determined in segmented

discuss how the cost of capital is determined in segmented vs. integrated capital

  Regulating depository financial institutions

Why the United State public has not acceted the concept "The free market is the best regulator of business" for regulating depository financial institutions.

  Short-tern investments why is referred stock with a

short-tern investments why is referred stock with a dividend tied to short-tern interest rates an attractive

  Calculate the cost of common stock

Meacham's marginal tax rate is 38%. Meacham's capital structure is 40% debt, 50% common equity, and 10% preferred stock.

  Discuss and interpret the financials in relation to the

decide upon an initiative you want to implement that would increase sales over the next five years for example market

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