Hartford construction call option contracts

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Reference no: EM132020850

1. You purchased eight Hartford Construction call option contracts with a strike price of $35 when the option was quoted at $2.01. The option expires today when the value of Hartford Construction stock is $38.70. Ignoring trading costs and taxes, what is the total profit or loss on your investment?

$1,594

$876

$1,080

$1,352

$3,210

2. Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 11.00 percent. Their recent dividend was $1.43. What is the value of their stock when the required rate of return is 15.00 percent?

$.3968

$.3575

$39.68

$35.75

Reference no: EM132020850

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Hartford construction call option contracts : You purchased eight Hartford Construction call option contracts with a strike price of $35 when the option was quoted at $2.01.

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