What is the net profit or loss on this investment

Assignment Help Financial Management
Reference no: EM131535126

You purchased sixty call option contracts on ABC stock with a strike price of $32.50 when the option price was $1.65 per share. The option expires today when the value of ABC stock is $34.60. what is the net profit or loss on this investment?

Reference no: EM131535126

Questions Cloud

Calculate the amount financed and finance charge : Calculate the amount financed. Calculate the finance charge. Calculate the APR by formula.
What is the project year one cash flow : Clemson Software is considering a new project whose data are shown below. What is the project's Year 1 cash flow?
Compute the re ward to variability ratio for kim national : Over the same historical period, the risk-free rate was 6 percent. Compute the re ward to variability ratio for Kim National.
Data differences between tesla and facebook : What are the advantages and disadvantages of Rosetta Stone going public? Describe the data differences between tesla and facebook?
What is the net profit or loss on this investment : The option expires today when the value of ABC stock is $34.60. what is the net profit or loss on this investment?
What is the intrinsic value of this stock today : What are the expected values of D1, D2, D3 and D4? What is the intrinsic value of this stock today?
Exercise price of put option and price of call option : The exercise price of put option is $60 and price of call option is $7 per share. What are the prices ranges for profit and loss?
Define the terms future value and present value : Define the terms future value and present value. Explain the calculation of future value and present value with suitable example.
Identify shareholders that tend to realize smaller return : Identify the shareholders that tend to realize the smaller return and provide some possible explanation for these low returns.

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