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

  Portfolio analysis

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than mark..

  Provide investment portfolio advice

Provide investment portfolio advice and management to a client.

  Evaluate total number of shares

EBV proposes to structure the investment as 5m shares of CP with FV of $5m, one-to one conversion to common, and no dividends. Total Valuation Estimated from Newco.

  Role of the imf and world bank

Economic and territorial logic of empire are not always aligned. Explain his argument in light of the role of the IMF and World Bank as forms of neo imperialism.

  Prepare a portfolio of stocks

Prepare a portfolio of stocks

  Which critically examines the benefits and risks to company

Which critically examines the benefits and risks to a company, of incorporating corporate debt into a portfolio of equity and debt.

  Compute the variance-covariance matrix

Compute the sample mean, variance, and standard deviation of these shares and compute the variance-covariance matrix V and Plot the daily share prices and daily returns for each individual asset.

  Net nominal rate of interest and net real rate of interest

What bank portfolio can guarantee the rate of return 1 to all type 1 people and the rate of return 1.2 to all type 2 people? How many goods are placed in storage? In capital?

  Right issue to improve financial status

If you are the CEO of a British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take and How do you think British government should respond to the Malaysian action?

  Calculate the cost of reinvested profits

Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

  Calculate the after-tax cost of debt

Cost of debt For each of the following bonds, calculate the after-tax cost of debt. Assume the coupons are paid semi-annually, that the tax rate is 40 percent, and that we are dealing with $1,000 of par value.

  Calculate the overall cost of capital for cartwell products

Calculate the overall cost of capital for Cartwell Products. Which projects should the firm select? Does your answer differ from your answer topart d? If so, explain why.

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