User Account

All Pages

What is the option profit to the trader

Assignment Help Finance Basics
Reference no: EM132692862

On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $20. The stock price is $21.49 and the option price is $5.3.

At the expiration, the stock price becomes $18.07. What is the option profit to the trader?

Reference no: EM132692862

Questions Cloud

Calculate the size of scholarship that university can award : The university will award the scholarship at the end of every quarter, with the first scholarship being awarded six years from now.
What should be biotech current stock price : If the required rate of return on stocks of firms in this industry is 16% per year, what should be BioTech's current stock price?
Which option will yield the highest rate of return : If the stock price becomes $120 at expiration, which option will yield the highest rate of return (=profit / cost)?
Journalize the entries for February and August : Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value
What is the option profit to the trader : On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $20. The stock price is $21.49 and the option price is
Calculate the option profit to the trader : The stock price is $27.22 and the option price is $4.15. At the expiration, the stock price becomes $30.71. Calculate the option profit to the trader.
Calculate the interest rate on an eight-year : Use the following information to calculate the interest rate on an eight-year bond just issued by Becher Inc.
What is the total amount invested : A marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, What is total amount invested (total paid-in capital) by all stockholders
Determine the dividends per share on each class of stock : The following amounts were distributed as dividends: first year, $36,000; Determine the dividends per share on each class of stock

Reviews

Write a Review

Finance Basics Questions & Answers

  Compare and contrast traditional contract formation

Compare and contrast traditional contract formation with those entered into electronically.

  Calculate the current share price

If the expected return on Expo's common shares is 15 percent, calculate the current share price.

  Monthly payments for four years

You are looking to buy a car. You can afford $430 in monthly payments for four years. In addition to the loan, you can make a $1,200 down payment. If interest rates are 7.50 percent APR, what price of car can you afford? (Do not round intermediate..

  Use kupiec two-tailed test

Suppose that we back-test a VaR model using 1,000 days of data. The VaR confidence level is 99% and we observe 15 exceptions. Should we reject the model at 5% confidence level. Use Kupiec's two-tailed test.

  Secondary markets for corporation stock trades

In the secondary markets, there is no additional capital raised, yet can someone describe how the corporation whose securities are being traded.

  How much are you paying today for payments

Assuming that you can get these investments for a return of 7%, as promised, How Much are you paying today for payments 26 to infinity?

  Is downsizing a sound strategic initiative

a. Is Downsizing a Sound Strategic Initiative? Explain. ?b. Does Expanding via Mergers and Acquisitions Make for Sound Corporate Strategy? Explain.

  Incremental cash flows for project

Prepare a statement showing the incremental cash flows for this project over an 8-year period. Calculate the Payback Period (P/B) and the NPV for the project.

  Calculate the present value of receiving $2300 per year

Calculate the present value of receiving $2300 per year, with certainty, for the next 20 years. Infer rates for the missing years using linear interpolation. (Hint : Use a spreadsheet.)

  Why is it unsual for yields on longer term notes

what expectation would lead a rish neutral investor to buy the 2 note (instead of the 1 year) given its lower yield? (please involve a specific number)

  Law vs ethics in public health affairs

Suppose you are advisor to the health officer in a medium-sized city in upstate New York that is experiencing an increase in syphilis and a rise in HIV

  Eva analysis

Using an EVA analysis, should Laidlaw acquire the new piece of equipment?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd