Mike net profit on the call option

Assignment Help Finance Basics
Reference no: EM132678509

Mike Suerth sold a call option on Canadian dollars for $0.03 per unit. The strike price was $0.82, and the spot rate at the time the option was exercised was $0.88. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 47,000 units in a Canadian dollar option. What was Mike's net profit on the call option? Use a minus sign to enter loss values, if any. Round your answer to the nearest dollar.

Reference no: EM132678509

Questions Cloud

What was your net profit per unit : On July 2, the two-month futures rate of the Mexican peso contained a 2 percent discount (unannualized). The spot rate of the Mexican peso was $0.054.
Provide the journal entries for fitzroy pty ltd to account : In July 2019, Fitzroy Pty Ltd, Provide the journal entries for Fitzroy Pty Ltd to account for the revenue to be received from the customer.
Provide the journal entry for brisbane pty ltd : Brisbane Pty Ltd provides consulting services, Provide the journal entry (or entries) for Brisbane Pty Ltd to recognise revenue to be received from AFL Pty Ltd.
Compute the balance of Terrace Waters : As of January 1, Terrace Waters, Capital had a credit balance of $500,000. Compute the balance of Terrace Waters, Capital as of the end of the year
Mike net profit on the call option : What was Mike's net profit on the call option? Use a minus sign to enter loss values, if any. Round your answer to the nearest dollar.
Developing the sql skills in the future : Provide some useful readings the author may pursue to help in developing the SQL skills in the future - usage of SQL statements and commands used
Determine amount of impairment loss for black jack ltd : Determine the amount of the impairment loss, and provide the journal entry necessary to recognise any impairment in the machine
Determine the bonuses of each manager : Determine if it is convenient for Green Energy to accept the offer of the independent farmer. Determine the bonuses of each manager.
Determine the cash payments made during April : During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify the three types of finance companies

In a Microsoft word document and using a table, identify the three types of finance companies, the types of customers they serve

  Generate incremental revenues

Healthy Food Inc. is considering switching its manually operated machine with a new automated machine.

  Calculate the t-bill quoted discount yield

Suppose you purchase a T-bill that is 125 days from maturity for $9,765. The T-bill has a face value of $10,000.

  What will be the discount amount and net amount paid

What will be the discount amount and net amount paid if payment is made 26th July 2012?

  Consider a bond with a 10 coupon and with a ytm of 8 if the

consider a bond with a 10 coupon and with a ytm of 8. if the bonds ytm remains constant in one year will the bond price

  What annual payment would you have to receive

What annual payment would you have to receive in order to earn a 7.5% rate of return on a perpetuity that has a cost of $1,250?

  Lisa smith the treasurer of bank aaa has 100 million to

lisa smith the treasurer of bank aaa has 100 million to invest for one year. she has identified three alternative

  What are the pros and cons of using expatriates

What are the pros and cons of using expatriates, host-country nationals, and third-country nationals to run overseas operations?

  Analyse the silvio napoli at schindler india

Analyse the variousissues inherent in the "Silvio Napoli at Schindler India" case study, whether explicit in the case or dormant

  What is the difference between the expected rate of return

what is the difference between the expected rate of return and the required rate of return? what does it mean if they

  Do you think google drive for great growth faces serious

Do you think Google’s drive for great growth faces serious obstacles? If so, how might it overcome them?

  What is the price you should be willing to pay for this bond

Assume that you require a 14 percent return on a zero-coupon bond with a par value of $1,000 and six years to maturity. -What is the price you should be willing to pay for this bond?

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