Find your net profit per unit is

Assignment Help Financial Management

Reference no: EM131989371

You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.62. The option will not be exercised until the expiration date, if at all.

If the spot rate of the Canadian dollar is $.65 on the expiration date, your net profit per unit is:

Reference no: EM131989371

Questions Cloud

Under what circumstance does the investor make a profit : Under what circumstance does the investor make a profit? Under what circumstance would the investor exercise it? Also show the diagram.

Impact of the quantity discount outlined : Draw a diagram similar to slide 11-46 to show the impact of the quantity discount outlined in slide 11-52 on the cost to retailer?

Analyse contemporary issues in managing human resources : Analyse contemporary issues in managing human resources within the context of current professional and academic literature

What is the highest net profit possible for the speculator : A speculator purchases a put option on Singapore dollars(with a strike price of $0.70) for $0.075 per unit. A Singapore dollar option represents 62,500 units.

Find your net profit per unit is : You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.62.

What amount should be reported for total currents assets : What amount should be reported for total currents assets? What amount should be reported for total current liabilities? Show all computations.

Determine the weighted average cost of capital : Sound Systems (SS) has 200,000 shares of common stock outstanding at a market price of $37 a share.

Consider a continuous review inventory system : Demand is normally distributed with an average of 64,000 per month and a monthly standard deviation of 8020 units.

How many units of safety stock should be held : Demand averages 400 units per day, and the standard deviation of demand per day is 84 units. Lead time is 10 days.

User Account

All Pages