What is maryanne return from this transaction

Assignment Help Financial Management
Reference no: EM131931089

Maryanne paid $237 for a call option on a stock. The option gives her the right to buy the stock for $26.73 per share until March 1st. On February 15th, the stock price rises to $32.31 per share and Maryanne exercises her option. What is Maryanne's return from this transaction?

(Hint: Ignore transaction costs.)

Reference no: EM131931089

Questions Cloud

What advantages did smitheford pharmaceuticals have : What advantages did Smitheford Pharmaceuticals have by owning manufacturing facilities in Canada prior to NAFTA?
State opinion on us congresses recent tax cuts : State your opinion on US congresses recent tax cuts, specifically Congress passed a bill to cut tax before 2018. Elaborate on your opinion and support
About the mortgage lender : You are purchasing a new home and need to borrow $325,000 from a mortgage lender.
Discuss various capital budgeting methods most often used : Let's discuss the various capital budgeting methods most often used. One simple one is the the payback period;
What is maryanne return from this transaction : On February 15th, the stock price rises to $32.31 per share and Maryanne exercises her option. What is Maryanne's return from this transaction?
Operations by investing in property-plant and equipment : Coca Cola's CEO is now looking to expand its operations by investing in new property, plant, and equipment.
Discuss the goals of the project to investigate marketing : The goal of this project is to allow you the opportunity to investigate a marketing topic of interest to you. This covers a wide range of options.
What sales situation or scene affected you the most : What character(s), event, or theme did you resonate with? Why? What sales situation or scene affected you the most?
What did not make sense in the video : What made sense in the video? What was clear? What did not make sense in the video? What was confusing?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the stock current price per share

Tartan Industries currently has total capital equal to $7 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $3 million, and distributes 40% of its earnings as dividends. What is the stock's current price per sh..

  Determine project net present value at discount rate

Cost Reduction Proposal: IRR, NPV, and Payback Period eetermine the project's net present value at a discount rate of 16 percent.

  Paid semiannually on the balance outstanding

Interest at the annual rate of 8% is paid semiannually on the balance outstanding.

  Does the law of one price hold

At what exchange rate (in yen per dollar) would buying the commodity in the United States and shipping it to sell in Japan become profitable?

  What is the annual percentage rate

Suppose you borrow $10,000 from your parents to buy a car. What is the annual percentage rate?

  The bonds make annual payments and have par value

The Timberlake-Jackson Wardrobe Co. has 10.9 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,117.33, what is the YTM?

  Basis of cash expenditures related to fixed costs

Air Purifier Inc. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $2,450,000, but 15 percent of this value is represented by depreciation. Its contribution margin (price minus..

  Borrow money using the equity in their home for collateral

A couple wishes to borrow money using the equity in their home for collateral.

  Stock price rises

You have purchased a call option contract on Smith & Smith common stock. The option contract is for 100 shares. The option has an exercise price of $ 43.00 and S&S’s stock currently trades at $40.00. The option premium is quoted at $ 2.00. If the sto..

  Beneficiary of his retirement benefits

Don names a trust as the beneficiary of his retirement benefits. His wife, Milly, and their children Ed and John are beneficiaries of the trust. Which of the following statements regarding RMDs are true?

  Compute the annualized rate of return

compute -  the annualized rate of return on this investmentif you had paid cash, and -  your rate of return with the margin purchase.

  What would be your investment strategy

Suppose that the six-month spot rate is 6.00% and one-year spot rate is 6.10%. Additionally, suppose that you can look into a crystal ball and know for sure that six months from now that the six-month forward rate will be 6.2%. What would be your inv..

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