What is the traders profit if the stock price

Assignment Help Business Economics
Reference no: EM13978881

A trader sells a 2-month call option contract on 100 shares of a stock with strike price $50. The price of the option is $5. Suppose the options are held until the end. What is the trader’s profit if the stock price is $58 then?

Reference no: EM13978881

Questions Cloud

Identify a number of key images in the poem : Identify a number of key images in the poem which you believe are vital to understanding it and provide a detailed discussion of how those images function in the poem
Call option contract : A trader buys a 3-month call option contract on 100 shares of a stock with strike price $40. Which of the following statement is correct if the options are held until the end?
Brief reflection concerning the areas of course : Please post a brief reflection concerning the areas of this course you found most useful, especially related to your personal life, and if you are working, in your job as an accountant, auditor, or other employment role.
Find the average number of customers waiting for haircuts : Customers arrive at Paul Harrold's Styling Shop at a rate of 3 per hour, distributed in a Poisson fashion. Paul can perform haircuts at a rate of 5 per hour, distributed exponentially.
What is the traders profit if the stock price : A trader sells a 2-month call option contract on 100 shares of a stock with strike price $50. The price of the option is $5. Suppose the options are held until the end. What is the trader’s profit if the stock price is $58 then?
How might being a minority influence your behavior at work : The purpose of this assignment is to provide you with an experience where you are in the minority, preferably going further where you are the only one of your "kind" in a given situation. How might being a minority influence your behavior at work
What is evsi : For $10,000 Lark can hire a consultant who will predict who will win the trial. The consultant is correct 90% of the time. Should she hire the consultant? (Assume she is risk neutral). What is EVSI?
What are specific people risks for a manufacturing company : What are specific people risks for a manufacturing company? What are specific financial risks for a manufacturing company? What are specific operational risks for a manufacturing company
Compute the corrected operating income : After the end of 2014, the company discovered that an error had resulted in an $18,000 understatement of the 2013 ending inventory. Compute the corrected operating income for 2013 and 2014

Reviews

Write a Review

Business Economics Questions & Answers

  The cost function of a single-product firm

An economist estimated that the cost function of a single-product firm is

  What is interpretation of random choice for individual DM

Due to McFadden Economists usually interpret Random Choice, in the population sense, as each DM being drawn from the probabilistic choice rule independently and identically. However, Psychologist has maintained that individual DM is actually stochast..

  Price of restaurant meal results in drop in quantity demand

A $1.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 5 meals.

  Preparing them better for a global society

Identify three changes that American society is undergoing, and discuss how those changes are reflected in schools? How can you as a teacher become better prepared for the cross-cultural differences that you are certain to encounter among students? H..

  Enforcement costs are critical to success of environmental

A cost-effective policy is always socially efficient. Enforcement costs are critical to the success of environmental program and should be included in the overall social costs of the program when evaluating different policy options

  The wage elasticity of labor supply for men aged

The wage elasticity of labor supply for men aged 18-25 is measured to be 0.3. Within this group, the average weekly wage of the high school graduates is 2/3 the amount of college graduates. Assume that wage elasticity and all other individual charact..

  Country could increase national saving rate and therefore

In the post war period, a country could increase the national saving rate and therefore: The depreciation rate in United State is about 4% and population growth rate is 0.9% in 2012 and the technology growth rate is 2.1%. According to the Solow model..

  Is this individual risk adverse

Calculate the expected utility of each project according to this criterion. (c) Is this individual risk adverse, risk neutral, or risk seeking?

  Draw the demand curve and show the values of the price

Draw the demand curve and show the values of the price and quantity intercepts using the linear equation for Qx=28,000,000-Px divided by 1000.

  The terms of trade between two countries refer

The terms of trade between two countries refer to

  Find the limit output for fixed costs

Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..

  Explain why the transformed model meets the gauss-markov

find a transformation of the data to be able to use the same data to estimate a model that satisfies the Gauss-Markov assumptions. be clear and explicit about the process. clearly explain why the transformed model meets the Gauss-markov assumptio..

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