What is your annualized return from these two investments

Assignment Help Financial Management
Reference no: EM131320571

Suppose you have $35,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $70 per share. You also notice that a call option with a $70 strike price and six months to maturity is available. The premium is $3.5. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $76 per share? What about $66 per share? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Annualize return STOCK OPTION

$76 per share % %

$66 per hsare % %

Reference no: EM131320571

Questions Cloud

Critical thinking assignment tips : For this week's Critical Thinking Assignment, you are being asked to assess an organization's marketing management through evaluation of the business environment. You can choose a company that is familiar to you or consider Allstar Brands from the..
Find the value of r at which the amplitude of the radiation : Find the value of r at which the amplitude of the radiation field term in equation (9.23a) is equal to the resultant amplitude of the remaining two terms in the -component.
What is net asset value for this mutual fund : The World Income Appreciation Fund has current assets with a market value of $7.1 billion and has 535 million shares outstanding. What is the net asset value (NAV) for this mutual fund?
Write a paper on judicial activism : Write a 2-3 page, APA style paper on judicial activism. Present the arguments on both sides of the question as to whether judges should interpret or simply apply the Constitution. Research and provide more current examples (the current Supreme Cou..
What is your annualized return from these two investments : Suppose you have $35,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $70 per share. You also notice that a call option with a $70 strike price and six months to maturity is available. What is y..
What machines were used and how long did it take : Research an attempt to crack either DES, 3DES, or AES. What machine(s) were used, and how long did it take? Be sure to cite your source of information.
How will the responsibilities be divided : Account Managers (identify client needs and helps to create a creative plan); Creative Director; Research Director, Traffic Manager (i.e. the organizer, who helps to keeps deadlines and ensures productivity). These titles are meant to get a discus..
How does a psi impact possible probation : How does a PSI help the court to determine an appropriate sentencing decision? How does a PSI impact possible probation and parole decisions? How does a PSI help the court determine the sentence length and make recommendations for institutional place..
What is the single most important fundamental parameter : What is the single most important fundamental parameter that distinguishes solid, liquid and gas and what are its ramifications?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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