What is your dollar return

Assignment Help Accounting Basics
Reference no: EM133085096

Question - You have $5,000 to invest. You are considering two investment options. You can buy a stock that trades for $50 a share. You can buy call options on that same stock for $1.25 with a strike price of $55. Either way, you will invest all $5,000. Use the information above to answer the following questions:

1. What is your dollar return if you invest $5,000 in the stock and the stock price is $45?

2. What is your dollar return if you invest $5,000 in the stock and the stock price is $50?

3. What is your dollar return if you invest $5,000 in the stock and the stock price is $55?

Reference no: EM133085096

Questions Cloud

What is efe matrix and cpm matrix of netflix : What is efe matrix and cpm matrix of netflix, give a brief explanation of implications of each and what it means to the company.
How much her son can withdraw each month : How much her son can withdraw each month for 4 years, assuming her son will attend the university 2 years from today
Discuss organization human resource planning process : Discuss your organization's Human Resource planning process. How does it forecast demand for employees and supply of employees?
Identify the major purposes of job analysis : Can you please identify the major purposes of job analysis.
What is your dollar return : You can buy call options on that same stock for $1.25 with a strike price of $55. What is your dollar return if you invest $5,000 in the stock
Company recruitment and selection processes : Discuss the strengths and weaknesses of a company's recruitment and selection processes, what are the general recommendations to improve the process?
Negotiation in business-apple and samsung dispute resolution : For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt
What is the investor willing to pay for the bond : A bond issued with a face value of $1,000 pays a 3% coupon rate and matures in seven years. What is the investor willing to pay for the bond
What are the economic implications : What are the economic implications that become evident by using the Population Pyramid? Use the case of either Sub Sahara Africa or Japan to explain your answer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Series of inter-connected operations

Which of the following System applies when standardized goodsare produced under the series of inter-connected operations?

  How much will you have when you retire

If you earn 6 percent compounded annually on your investment, how much will you have when you retire in 44 years

  Discuss what would be the effect on the income statement

What would be the effect on the income statement if adjustments

  Computer sale and repair shows an ending balance

On May 31, 20x1, Jake obtains a bank statement from Ninth-Bank. According to the bank statement, the business bank account of Jake's Computer Sale and Repair has an ending balance of $33,895 on May 31, 20x1. The cash account in the books of Jake's..

  What is difference between public sector and private sector

What is the difference between public sector and private sector? What is the difference between public companies and public sector

  What is the final amount in Total Liabilities

Use T-accounts to record the transactions below, which occur on March 12, 2019, close the T-accounts, What is the final amount in Total Liabilities

  Prepare a production budget for product a

P begins 2020 with 80,000 of A in inventory. Based on sales projections of 100,000 units, prepare a production budget for product A in 2020

  Calculate the market value of bonnies bonds

market rates of interest had fallen to 8%, and Bonnie is considering selling the bonds. Calculate the market value of Bonnie's bonds on August 1, 2016

  Identifying the components of the organization''s cash

Research your selected company and acquire the company's most recent financial statements using the Internet.

  As a new auditor for the cpa firm of croix marais and kale

as a new auditor for the cpa firm of croix marais and kale you have been assigned to review the internal controls over

  On january 1 2009 carlin corporation issued 2400000 of

on january 1 2009 carlin corporation issued 2400000 of 5-year 8 bonds at 95 the bonds pay interest semiannually on july

  A girl has a 2000 overdue debt for books the local

a girl has a 2000 overdue debt for books the local bookstore. she has only 600 in her checking account. the bookstore

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