Solution-What is the net profit for trade

What is the net profit for trade

Assignment Help Finance Basics

Reference no: EM133068658

Suppose you pay $5,000 to buy an alternative call option with the following terms:

-the underlying asset is 1,000 shares of AAPL OR 1,000 shares or SSNG

-the strike price for AAPL is 175

-the strike price for SSNG is 225.

What is the NET profit for this trade if, on the expiration date, AAPL settles at 200 and SSNG settles at 249?

Reference no: EM133068658

Questions Cloud

Demonstrate return on investment in the system : Do you think there are other reasons aside from an increase in sales that make CRM a valuable enterprise system

Explain the constant growth ddm model : A stock will pay a dividend of $1.73 at the end of this year. Their stable dividend growth rate is 2.7%. Using the constant growth DDM model, what do you expect

Prepare a consolidated balance sheet for Pipe Corporation : Pipe common stock at July 1, 2014 was selling at $16 per share. Prepare a consolidated balance sheet for Pipe Corporation

What would be its stock price after the dividend : Wyatt Oil has assets with a market value of $600 million, $70 million of which are cash. It has debt of $250 million, and 20 million shares outstanding

What is the net profit for trade : What is the NET profit for this trade if, on the expiration date, AAPL settles at 200 and SSNG settles at 249?

What lessons have you learned from the scrum : What lessons have you learned from the scrum that you will help you deliver an excellent Presentation next week and What could be improved

Which plan has the lowest total up-front costs : Belinda Johnson's parents and maternal grandmother have combined their finances and presented Harry and Belinda with $50,000 cash gift to use to purchase a home

Adverse effects of exchange rates : If stakeholders (such as stockholders or creditors) have stakes in a well-diversified portfolio of MNCs, then their portfolio's value might be insulated if the

What position in futures contracts is required : 1. A portfolio supervisor plans to use a Treasury bond futures contract to hedge a bond portfolio over the following three months. The portfolio is well worth $

User Account

All Pages

What is the net profit for trade

Reference no: EM133068658

Reference no: EM133068658

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Formula for maturity model

Floating rate and receiving swiss frances at a fixed rate

Calculating the loan amount

Describe the type of industry in which cr. plastics compet

What does an net present value of zero imply

Calculate the npv of the project at the start of the project

Compute the value of pet food company bonds

Commit to buy a vacation home in the climate of your choice

Find some other case of insider trading

How does operating income differ from net income

Calculate a comme size analysis using spreadsheet

Which of the following bonds poses the biggest risk

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT