What is the trader net profit or loss

Assignment Help Business Management
Reference no: EM131851052

Yum Brands stock price is $67. A trader sells 5 put option contracts (100 shares each) on the stock with a strike price of $70 when the option price is $4. The options are exercised when the stock price is $69. What is the trader's net profit or loss? What is the answer and the rationale for the answer?

Reference no: EM131851052

Questions Cloud

List the requirements at the time of tend : Would the Tenderers be able to obtain clarification during the tendering process?Please discuss.
Brief summary of the charges and surrounding facts : Discussion of relevant principles to sentencing facts e.g. aggravating factors such as recidivist behaviour might indicate that offender has poor prospects
Explain your idea for an anthropology : Write at least two page (double-spaced) explaining your idea for a topic and why you think it's an important topic to study in anthropology.
Gathered projected cash flows : At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is above this interest rate? Why
What is the trader net profit or loss : What is the trader's net profit or loss? What is the answer and the rationale for the answer?
What is the ytm and effective annual yield : Oak Bay Software has 9.2 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.8 percent
Calculate net present value and internal rate of return : FIN 4330 Homework. Calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) of both projects, assuming a 4.15% discount rate
What is the clean price of the bond : What is the clean price of the bond?
What does jim believe the inflation rate will be over : An investment offers a 14 percent total return over the coming year. Jim Flaherty thinks the total real return on this investment will be only 9 percent.

Reviews

Write a Review

Business Management Questions & Answers

  State why you feel this is a strong goals-based plan

Include the following: objectives, the operations needed to achieve those objectives, action steps to take such as sales forecasting, tools and technology used, etc.

  Company code of ethics

Give two examples of a specific thing that would be found in each of these general areas.

  Explain common problems job hunters may face

Explain common problems job hunters may face and explain how you would deal

  Find would the firms operating leverage

Would the firm's operating leverage increase or decrease if it made the change and would the new situation expose the firm to more or less business risk than the old one

  Company wants to conduct research

When a company wants to conduct research, it first must identify a problem or possible opportunity to market its products. Choose any company.

  Hr manager in a hospital have a countless responsibilities

As a new HR manager in a hospital you have a countless of responsibilities. How do you conclude which duties are strategic, which duties influence the internal and external environment

  Attribute to poor controlling and poor leadership

We think about why all the competitive benchmarking wasn't effectively implemented, would we have to attribute it to poor controlling? Poor leadership? Something else?

  Illustrate what are the presumptions that apply

Illustrate what are the presumptions that apply when the element of intention is in dispute among the parties to an agreement?

  Demand and supply of particular goods

Go to the internet and find a news article from 2016-2017 that discusses changes in demand and supply of particular goods/services, summarize key points and post in the Discussions area.

  Defend modern examples of speech stylesexplain what might

defend modern examples of speech stylesexplain what might be some modern examples of speech styles that werent

  What is the current equity

What is the amount of projected assets?What is the amount of projected liabilities?What is the current equity?

  An advantage to the career field

Discuss at least two ways that this multicultural mix can be an advantage to the career field you have chosen.

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