What is the rate of return on your investment

Assignment Help Portfolio Management
Reference no: EM131451596

Assume you purchased the right to sell 2,000 shares of JC Penney stock in January 2013 at a strike price of $27 per share. Suppose the stock sells for $25 per share immediately before your options’ expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $29 per share? (Enter the rates of return for the 3-month period.)

Reference no: EM131451596

Questions Cloud

Should email and social media be restricted at the workplace : Should email and Social Media be restricted at the workplace and in what ways? (Expand and explain)
Define the ethical argument : The administrator of the BP compensation fund argues that everyone should be compensated according to his or her loss in the disaster.
Write an equation of a line in slope-intercept form : State your first and last name. Use the letters in your first name and last name to write an equation of a line in slope-intercept form
Provide the basis a good conversation about manufacturing : Your list provided the basis for a good conversation about the manufacturing operations," he says."What should my research include?" you ask.
What is the rate of return on your investment : What is the rate of return on your investment?
How does is security affect other groups in the corporation : Where does the responsibility of IS security typically lie, and what are some of the ways corporate governance affects this responsibility?
What steps has the gla taken to ensure clearer communication : Review the commitment of the Greater London Authority (GLA) to increased transparency at www.london.gov.uk/priorities/transparency.
Which preferred share will sell for higher price in market : Lexar Corporation is issuing some new preferred shares. Which preferred share will sell for a higher price in the market today?
What does ti do : What were the four focus areas for the 2010 Global Corruption Report?

Reviews

Write a Review

Portfolio Management Questions & Answers

  What is this corporations approximate earnings per share

What is this corporation's approximate earnings per share?

  How you construct a covered interest arbitrage transaction

How can forward and futures contracts be designed to hedge foreign exchange rate risk? What is interest rate parity, and how would you construct a covered interest arbitrage transaction?

  Should ibm now be classified as value stock or growth stock

Given your analysis, would all of the various firms shown in the exhibit still qualify to be included in the same portfolio? In particular, should IBM now be classified as a value stock or a growth stock?

  Explanation of an underlying investment philosophy

An explanation of an underlying investment philosophy and strategy for the development of the portfolio, which is consistent with the indicated requirements of the client.

  Portfolio assignment

Portfolio assignment

  Operational efficiency and effectiveness

Suggest how health care leaders can use project metrics and portfolio management to ensure operational efficiency and effectiveness. Provide specific examples to support the response

  The necessary components as set forth in the rubric

Complete your Portfolio Project assignment, focusing on making sure that you have all of the necessary components as set forth in the rubric. Spend time making sure that the formatting meets SEU APA standards, and thoroughly proofread and grammar-che..

  What is the sign of the slope coefficient

What is the sign of the slope coefficient in a predictive regression of market returns on the price-to-dividend ratio P/D? What if instead one uses cay, the proxy for consumption-to-wealth ratio constructed by Lettau and Ludvigson (2001)? Give a b..

  What is the probability that you own a good asset

There are two types of assets. Good quality assets (type-G assets) can have an annual rate of return equal to 4% or 6% with equal probability. What is the probability that you own a good asset? What is the predictive distribution of the return on yo..

  How could you mitigate the negative size bias induced

How could you mitigate the negative size bias induced by the long-only constraint? How would you attempt to look as good as possible by this measure? Would this always coincide with the best interests of the manager?

  Indicate and justify a growth label for general motors

Indicate and justify a growth label for General Motors. Given the alternative companies described in the chapter, indicate what your label would be for Walgreens. Justify your label.

  What is the expected effective yield of investment portfolio

What is the expected effective yield of the investment portfolio? Based on the expected effective yield for the portfolio and the initial investment amount of £15 million, determine the annual interest to be earned on the portfolio.

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