What is the net gain or loss on the option portfolio

Assignment Help Financial Management
Reference no: EM131903548

An investor has unrealized gains in 100 shares of Amazon stock for which he does not wish to pay taxes. However, he is now bearish upon the stock for the short term.

The stock is at $76 and he buys a put with a strike of $75 for $200. At expiration the stock is at $81. What is the net gain or loss on the option portfolio?

Reference no: EM131903548

Questions Cloud

What journal entry would need to be recorded at year end : Denson Company has been sued by Merck Company for breach of contracts. What journal entry, if any, would need to be recorded at year-end
Calculate your expected total return if you re-invest : You expect to hold the bond until maturity. Calculate your expected total return if you re-invest all coupons at 5 percent.
Explain how your results influence your planning decisions : HI6026 Audit, Assurance and Compliance - Explain how your results influence your planning decisions for the audit for the year ending 30 June 2015
Evaluate the choices faced by Steve Lewis : Evaluate the choices faced by Steve Lewis, Peter Adario, and Eduoard Sakiz (in Badaracco's article) from the standpoints of the generalizability.
What is the net gain or loss on the option portfolio : The stock is at $76 and he buys a put with a strike of $75 for $200. At expiration the stock is at $81. What is the net gain or loss on the option portfolio?
Calculate firm a degree of operating leverage : Calculate Firm A's degree of operating leverage. How do I figure out the degree of operating leverage?
How would he layoff impact the company : How would he layoff impact the company's intangible assets? How would the BPR event be reflected in the company's financial statements
Write impact and influence of the print media : Wirte an outlines for a research paper on the impact and influence of the print media in the United States on the formation of culture by researching.
Discuss the differences among managerial accounting : Discuss the differences among managerial accounting, financial accounting, and financial management within an organization

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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