User Account

All Pages

What is the spread profit-to-loss ratio

Assignment Help Finance Basics
Reference no: EM133110253

Look at the following information.

Security

Qty

Bid

Ask

Invesco QQQ Trust ETF

 

$399.81

$399.63

QQQ 14 JAN 2022 410 CALL

20

$0.07

$0.10

QQQ 14 JAN 2022 415 CALL

20

$0.01

$0.04

QQQ 14 JAN 2022 390 PUT

20

$0.35

$0.36

QQQ 14 JAN 2022 385 PUT

20

$0.17

$0.19

a. If you decide to enter into iron condor spread, how would it be structured, and what would the potential profit or loss be?

b. What is the spread's profit-to-loss ratio?

c. How much margin (buying power) does this position require?

d. What are the breakeven points?

e. If the QQQ monthly historic volatility is 2.65%, what is the expected return of this spread?

Reference no: EM133110253

Questions Cloud

Calculate the capital needed at retirement : By using the annuity approach, calculate the capital needed at retirement (age67) for Wiliamses. Assume a 9% after-tax rate of return. Base the calculation on M
What is the required monthly payment : For a loan of $100,000, with a 5% annual interest rate for 30 years, what is the required monthly payment?
What is the actual return on assets : If the Bulldogs Inc. has a unfavorable total gross profit variance of 600,000 and total assets of P5,920,000, what is the actual return on assets
Earnings available to common stockholders : Sun Company and Moon Company are identical in every respect except that Sun is not levered. The market value of Moon Company's 6 percent bonds is $1.2 million.
What is the spread profit-to-loss ratio : a. If you decide to enter into iron condor spread, how would it be structured, and what would the potential profit or loss be?
Prepare the updated stockholders equity section : Common stock-$10 par value, 120,000 shares authorized, 78,000 shares issued and outstanding $780,000. Prepare the updated stockholders equity section
What is international capital structure : Question: What is International Capital Structure?
Explain how blockchain and high frequency trading : Please explain how blockchain and high frequency trading can effect the financial markets. Do you believe that these two developments will continue in the futur
What is the company net change in cash as reported : A company reports a loss of $700,000 and depreciation of $180,000 for Year 2. What is the company's net change in cash as reported on its cash flow statement

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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