Latest value of the five day simple moving average

Assignment Help Financial Management

Reference no: EM131934144

You think the price of a utility company stock, which is currently $80 is unlikely to change significantly over the next three months. To profit from this expectation, you sell a straddle position, with a call and put option, worth $7 and $8 per share, respectively, with three months to expiration,and a strike price of $80.

If at expiration the stock is trading at $71, what is your net profit on this position?

Remember that option contracts come in multiples of 100 shares.An asset has the following closing prices over 10 trading days:

time price

0 ~ 76

1 ~ 74

2 ~ 79

3 ~ 75

4 ~ 77

5 ~ 70

6 ~ 74

7 ~ 79

8 ~ 74

9 ~ 73

What is the latest value of the 5 day simple moving average?

Reference no: EM131934144

Questions Cloud

Discuss the social engineering in our own lives : Discuss the Social Engineering in our own lives. Preventing attacks sometimes requires you to think like the attacker.

What is the cash flow from leasing relative to purchasing : Artisan's is considering leasing a new computer. The lease terms include five annual payments of $1,500 with the first payment occurring when the lease.

What is needed to create an irrevocable offer : What are the general goals and purposes of Article 2 of the UCC? What is the greatest impact of the UCC on business in the United States?

Discuss your thoughts about the given legislation : Discuss your thoughts about this legislation. Do you think it is fair? Should this money only go to those who have paid into the Medicare system.

Latest value of the five day simple moving average : What is the latest value of the 5 day simple moving average?

What discount rate or wacc should use : If a firm is considering a new investment, that will generate an internal rate of return of 11.5%, with $10,000,000 in bonds, $2,000,000 in preferred stocks.

What is your net profit on position : If at expiration the stock is trading at $71, what is your net profit on this position?

Describes the push for democracy that we saw in egypt : Describes the push for democracy that we saw in Egypt - From the videos and articles something needs to happen in Egypt very soon or more lives will be lost

Company capital structure weights on a book value basis : What are the company's capital structure weights on a book value basis? Which are more relevant, the book or market value weights?

User Account

All Pages