Overall rate of return on position for worst case outcome

Assignment Help Financial Management
Reference no: EM131594858

You buy 1 share of stock at 61.50 and also purchase one put option with strike of 50.00 and option price of 3.70 what is the overall rate of return on your position for the worst case outcome?

Reference no: EM131594858

Questions Cloud

Percentage change in the intrinsic value of company shares : What is the likely resultant percentage change in the intrinsic value of the company's shares?
Produce a customer service plan with appropriate sections : BSBCUS501: Manage Quality Customer Service - produce a Customer Service Plan that demonstrates a thorough understanding of the policies and procedures
Prepare the entry to record the impairment of the loan : Prepare the entry (if any) to record the impairment of the loan on December 31, 2019, by Paris Bank
What is the cash flow to stockholders : What is the amount of net capital spending for 2011? What is the cash flow to creditors in 2011? What is the cash flow to stockholders in 2011?
Overall rate of return on position for worst case outcome : what is the overall rate of return on your position for the worst case outcome?
Determine the impulse response of the ltid system : You are hired by a signal processing firm and you are hoping to impress them with the skills that you have acquired in this course.
Use the appropriate time value of money table : What is the future value of $1600 saved each year for 4 years at 2 percent? Use the appropriate Time Value of Money table
Prepare a differential analysis : Prepare a differential analysis, dated January 3, 2014, to determine whether Inman should lease (Alternative 1) or sell (Alternative 2) the machinery
Evaluate the importance of applications of queuing theory : Evaluate the importance of applications of queuing theory in a health services environment. Provide one example of this importance to support your evaluation.

Reviews

Write a Review

Financial Management Questions & Answers

  Effect on the demand for reserves or the supply

Explain and show graphically the effect on the demand for reserves or the supply of reserves of each of the following Fed policy actions:

  Set up a currency swap that will benefit each counter party

Suppose a Spanish MNC has a mirror-image situation and needs $2,900,000 to finance a capital expenditure of one of its U.S. subsidiaries. It finds that it must pay a 9 percent fixed rate in the United States for dollars, whereas it can borrow euros a..

  Did depreciation expense provide cash inflow

What amount of cash did Webster receive from customers during the year ended December 31, 2011?- Did depreciation expense provide cash inflow? Comment.

  What is the value today of receiving single payment

What is the value today of receiving a single payment of $83,978 in 14 years if you require a rate of return on this investment 27.00% compounded semi-annually?

  What is the standard deviation of the stocks returns

You find a certain stock that had returns of 11 percent, −14 percent, 23 percent, and 19 percent for four of the last five years. The average return of the stock over this period was 10.48 percent. What was the stock’s return for the missing year? Wh..

  Impact of the internet on working capital management

Explain and discuss the impact of the internet on working capital management based on the textbook reading and your own experience

  Good cash flow estimates be as part of investment equation

Assume you are the CEO of a local YMCA. You and your administrative team are considering making an investment in a day care facility to meet the ongoing child care needs of your members. What would the role of good cash flow estimates be as part of t..

  What are the nominal and effective costs of trade credit

What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers?

  Different fitness center with the same average profits

Now, assume you have the option of buying a different fitness center with the same average profits and interest rate as the one in Problem #8. You have negotiated the price of this firm down to $800,000. Would you be willing to purchase this one?

  What is the monthly mortgage payment on mortgage

Joi Chatman recently received her finance degree and has decided to enter the mortgage broker business. Rather than working for someone else, she will open her own shop. Her cousin Mike has approached her about a mortgage for a house he is building. ..

  Cases of buyer and seller of put option in case

We have 20,000 shares of IBM, which we bought for $50 per share. We buy protective puts against them at a strike price of $62 for which we have to pay a $2 premium. Explicate on the results and the ROR we make in the following two cases. Explain the ..

  Residual value of firm after period of competitive adventage

Sales growth rates: Base year = 15% with a fade rate of 1% a year for years 1-10: (increasing sales due to sustained competitive advantage and a differentiated product)[source: Strategic Plan]. Fade rate is the rate of decline per year (each year) fr..

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