How much did the seller of the put earn as profit

Assignment Help Financial Management

Reference no: EM13951736

You purchased a put option for $6.89 fifteen days ago. The call has a strike price of $95 and the stock is now trading at $91. If you exercise the put today, what is the value of the option? What is the profit you will make on the put? How much did the seller of the put earn as profit?

Reference no: EM13951736

Questions Cloud

Use the data from a firms pro forma : Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks: (a) net profit margin; (b) return on total a..

Who is responsible for romeo and juliet death : I am currently preparing for a mock trial for Romeo and Juliet. I have taken the role as Tybalt. We are doing a case of "Who is responsible for Romeo and Juliet's death?

Discuss what are the three key aspects of research : Which one of them you consider the most important, or are they equally important?

Reviewing the background materials : Once you have finished reviewing the background materials and have carefully thought about how they apply to your organization, write a 2- to 3-page paper answering the following questions:

How much did the seller of the put earn as profit : You purchased a put option for $6.89 fifteen days ago. The call has a strike price of $95 and the stock is now trading at $91. If you exercise the put today, what is the value of the option? What is the profit you will make on the put? How much did t..

Sales increase a firms net operating income : How much will a 10% increase in sales increase a firm's net operating income (NOI) and increase its net income (NI), if: its degree of operating leverage (DOL) = 2.0, and its degree of financial leverage (DFL) = 3.0? (b) its DOL = 2.5 and DFL = 4.0?

Risk analysis in the context of the selected company : A description of the company and why the company was selected - an environmental scan and risk analysis in the context of the selected company.

Perpetual preferred stock has a dividend growth rate : A company's $100 par perpetual preferred stock has a dividend growth rate of 7 percent and a required rate of return of 11 percent. The company's earnings are expected to grow at a constant rate of 3 percent per year. If the market price per share fo..

Earnings before interest and taxes between these two options : Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 46,000 shares of stock. The debt and equity option would consist of 23,000 shares of stock plus ..

User Account

All Pages