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Question - You write one European Tesla July 330 call option contract (equalling 100 shares) for a premium of $7 shares. You hold the option until the expiration date, when Tesla stock sells for $340 per share.
Required -
a) How much is the realized profit/loss on the transaction?
b) What is the maximum profit that you can realize on this position? Explain your answer!
c) What is biggest loss that you can suffer on this position? Explain your answer!
Imagine you have been hired as a consultant to the VP of marketing for Old Navy, a subsidiary of Gap Inc. The VP wants to get an objective opinion from someone outside the company who is familiar with current marketing basics.
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Give all eliminating entries related to the equipment that would be needed to prepare consolidated financial statements for 2007 and 2008.
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