What is net gain or loss on investment

Assignment Help Finance Basics
Reference no: EM133121867

You wrote 3 call option contracts on XYZ stock with a strike price of $40 and an option premium of $1.95.

What is your net gain or loss on this investment if the price of XYZ is $35.63 on the option expiration date? (Round answer to 2 decimal places. Do not round intermediate calculations).

Reference no: EM133121867

Questions Cloud

Define and contrasts definitions of population : How to identify the independent and dependent variables in the following scenario: A counselor is interested in knowing if one of the two different treatments s
What is Call Reluctance : What is "Call Reluctance"? Discuss at three (3) major reasons for Call Reluctance. Provide an instance where you were reluctant to take a sales call
What is the price of a put option : A stock is currently selling for $37 per share. A call option with an exercise price of $45 sells for $3.34 and expires in three months.
Price of the security stated annual interest rate : What is the price of the security if the stated annual interest rate is 9.71%, compounded quarterly? (Round answer to 2 decimal places. Do not round intermediat
What is net gain or loss on investment : You wrote 3 call option contracts on XYZ stock with a strike price of $40 and an option premium of $1.95.
COT 5405 Design and Analysis of Algorithms Assignment : COT 5405 Design and Analysis of Algorithms Assignment Help and Solution, University of Central Florida - Assessment Writing Service
Calculate the interest rate : As an investor, you expect the inflation rate to be 7% next year, to fall to 5% during the following year and then to remain at a rate of 3% thereafter. Assumin
Find the total amount receivable : 1. Find the total amount receivable at the end of 5 years, if you deposit $1 000 at the end of each year for the next 5 years, assuming annual compound interest
Calculate the net present value of the proposed investment : Calculate the net present value of the proposed investment and comment on your findings.

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the management of global products

Evaluate the management of global products that are similar to those offered by Samsung in China. The global advertising and executive summary portion

  What is your risk tolerance

What is the goal? (Send my daughter to college); (retire comfortably)(The purpose for this money ultimately) What is your risk tolerance? (Where do you fall on the risk continuum from conservative>some risk>above average risk>aggressive)

  Explain the evaluating projects

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping's cost of capital is 6.28 percent.

  Sign of coming recession

An inverted yield curve occurs when short-term interest rates are higher than long-term rates. It is often said that an inverted yield curve is a sign of coming recession. Why do you think the view makes sense? Why not?

  Compute the firm earnings after taxes and earnings

Michaels Company expects earnings before interest and taxes to be $40,000 for this period. Assuming an ordinary tax rate of 40%, compute the firm's earnings after taxes and earnings available for common stockholders

  Start paying dividends in the near future

Alphabet class C stock will start paying dividends in the near future because of all of the cash flow that it generates (coupled with a nearly $70 billion cash balance). When pressed on the issue, Frank made a forecast that Alphabet will start paying..

  What is the debt to equity ratio

Suppose that the tax rate is 20%. What is the debt to equity ratio

  What are the advantages to a us firm of financing its

what are the advantages to a u.s. firm of financing its foreign investments with funds raised

  The m&m tax mode

According to the M&M tax model, the value of a levered firm is equal to the value of an unlevered firm plus the tax shield from debt. What does this model imply about the firm's optimal capital structure?

  What is the current market price

What is the current market price of a 5-year bond with a face value of $100 that has a coupon rate of 13% with an annual coupon payments

  Oral roberts dental supplies has annual sales of 5625000

oral roberts dental supplies has annual sales of 5625.000. 80 are on credit. the firm has 475000 in accounts

  Why should a banker attend to the impacts of each

Why should a banker attend to the impacts of each of these components rather than simply looking at the total of loans and deposits?

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