What do you call this strategy

Assignment Help Accounting Basics
Reference no: EM133186291

Question - You sell 3,000 put options at $2 each and 3,000 call options at $3 each. The exercise price of one put option is $60 and the exercise of one call option is $70.

a. What do you call this strategy?

b. Calculate your total profit/loss for each of the following prices: $50, $55, $60, $65, $75 and $80.

Reference no: EM133186291

Questions Cloud

What we learned from our required learning activities : Based upon what we learned from our required learning activities, do equal proportional taxes imposed on all market goods have no excess burden
What is the firm net profit margin : ABC Company has total assets turnover ratio of 1.90 and a return on total assets of 7.20%. What is the firm's net profit margin
What is the price at which the investor gets a margin call : An investor short sells $32,000 worth of a stock priced at $40 per share using 60% initial margin. What is the price at which the investor gets a margin call
Calculate the total cost for each of the possible price : You are a crude oil dealer. You intend to sell 500,000 barrels of crude oil in December 2022. Calculate the total cost for each of the possible price
What do you call this strategy : You sell 3,000 put options at $2 each and 3,000 call options at $3 each. The exercise price of one put option is $60. What do you call this strategy
Discuss the functional component of business : Discuss the functional component of business and in the context of problem-solving.
Ethical watchdog in a systems development project : James is uncomfortable with the request. He is not sure the bank has the right to use a person's data for purposes other than the original intent.
What is the npv of this investment : It will be salvaged for $200,000 at the end of year 3. If your required rate of return for the project is 13%, what is the NPV of this investment
Compare and contrast capitalism and socialism : Compare and contrast capitalism and socialism in your chosen countries with supporting definitions, explanations, and examples.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the total estimated uncollectibles

Godfreid Company has accounts receivable of $95,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance.

  Give two examples of recent health care technology

please provide a substantive response at least two paragraphs of 6-8 sentences each to the following questionprovide

  What would be the journal entry to record the revaluation

The land is estimated at $2 million. Newport Ltd uses the revaluation method. What would be the journal entry to record this revaluation?

  Report cash provided by operating activities

The following transactions and events occurred during the year. Assuming that this company uses the direct method to report cash provided by operating.

  How should the cash be distributed

David Oliver and Umar Ansari, with capital balances of $28,000 and $35,000, If the partners share income and losses equally, how the cash distributed

  What is the percentage of completion for tower

Common Area (which is to be prorated to their saleable area) $100,000,000. What is the percentage of completion for tower 1

  Calculate the operating cash flow for the repair shop

Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow

  The capital accounts of jonathan faber and faheem ahmad

the capital accounts of jonathan faber and faheem ahmad have balances of 150000 and 110000 respectively. lauren wells

  What is Jean approximate total cost

Jean borrows $12,000 for 8 years at 6% interest. What is the approximate cost of the loan? What is Jean's approximate total cost

  Discuss how term affects living beings physical environment

Discuss how the term affects living beings (including humans) and/or the physical environment. Provide two examples as needed.

  Explain critical accounting policies and estimates

Research In Motion reports in notes to its financial statements that, in addition to its merchandise sold, it includes the following costs (among others).

  What is the amount of outstanding checks on June

Animalistic Corporation provided the following information: Balance per bank statement - May 31 2,600,000. What is the amount of outstanding checks on June

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