Investment gain in the course of the month

Assignment Help Finance Basics
Reference no: EM132455599

Suppose that you own 100 shares of Zions Bank Company stock, which are currently selling for $30 per share. You sell someone the right to purchase your shares for $32 (a covered call). This right will cost them $1 per share, and the right is good for the next month. A month later, the shares are selling for $35. Assuming that the owner of the calls exercises her right to buy your shares, how much was your total investment gain in the course of the month?

Reference no: EM132455599

Questions Cloud

Describe discipleship strategies employed by augustine : A 400-word (about 2 page) summary of 3-4 discipleship strategies employed by Augustine and other church fathers. A 400-word (about 2 page) reflection on what.
The attributes of data set are purchase decision : The attributes of a data set are "purchase decision (Yes/No), Gender (M/F), income group (50K). Can you use K means to cluster this data set?
Who created each work of architecture or sculpture : In a minimum of 3 well-developed paragraphs address the following questions: Who created each work of architecture or sculpture? Who commissioned its creation?
Properly protecting and securing evidence on laptop : Describe how you would start this incident off correctly by properly protecting and securing the evidence on the laptop.
Investment gain in the course of the month : Assuming that the owner of the calls exercises her right to buy your shares, how much was your total investment gain in the course of the month?
How does technology affect privacy in your life : What are the first things that come to mind when you think about technology? What does privacy mean to you? How does technology affect privacy in your life?
What is pre-tax-one-year return on investment : What is your pre-tax, one-year return (or yield) on investment if you now sell it? (Please ignore any sales commissions.)
How and why have terrorist groups targeted victims : Terrorism has become global in nature. How and why have terrorist groups targeted victims? What steps can law enforcement take in various parts of the world.
Which theory describes your view of white collar offender : Which theory best describes your view of this white collar offender. Support your position with at least three (3) external references.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is expected rate of return on the stock

The dividend of the stock is expected to grow at a constant rate of 7% per year. What is expected rate of return on the stock?

  Is there a symptom of bad corporate governance

1) Is there a symptom of bad corporate governance based on the information provided in this case?

  Operating profit margin is a better measure of financial

operating profit margin is a better measure of financial performance becauseaoperations are the only thing that

  What are the barriers to control success

What are the keys to successful control, and what are the barriers to control success.

  Compute the expected rate of return

Demonstrate to your colleagues how you would calculate the expected rate of return,r-hat, also called r-hat, and Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Assume the weighting of the ..

  What is the yield to call of the bond

A 6.90 percent coupon bond with 28 years left to maturity can be called in nine years. The call premium is one year of coupon payments.

  What is the company''s cost of equity

CALCULATING COST OF EQUITY The Absolute Zero Co. just issued a dividend of $3.40 per share on it common stock. The company is expected to maintain a constant 4.5 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, w..

  How much is the 6 month forward rate for yen

How much is the 6 month forward rate for yen? The yen is selling at discount or premiun? Why

  Discuss what valuable information would be lost if you

discuss what valuable information would be lost if you decided to use book values in order to calculate the cost of

  Options in the black-scholes-merton model

When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one source of uncertainty. What is this uncertainty?

  Discuss about the credit period length

Credit Period Length. In each of the following pairings, indicate which firm would probably have a longer credit period and explain your reasoning.

  Shanetta and crystal are general partners

One Saturday, Crystal was doing Lynette's hair when she accidentally caused a second degree burn to her scalp. Lynette began bleeding and screamed in pain

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