What is your net profit on position

Assignment Help Financial Management

Reference no: EM131989955

A call option on the SGD with a strike price of 0.78 USD/SGD and a maturity of 6 months has a premium bid price of 0.14 USD, and a 1penny bid-ask spread. If you sell these options today on 10,000 SGD, and at maturity the SGD is quoted at bid price of 0.81 USD/SGD, with a 1 penny bid-ask spread, what is your net profit on this position?

Reference no: EM131989955

Questions Cloud

The hamburgs family to reduce the amount of risk : All the following methods can be used by the Hamburgs family to reduce the amount of risk to which the family is currently exposed, EXCEPT:

The life insurance lump-sum death proceeds : If primary lump-sum beneficiary is living when insured dies, contingent beneficiary has no legal right to any of the life insurance lump-sum death proceeds.

What is the npv of this? investment : You have an investment opportunity in Japan. What is the NPV of this? investment? Is it a good? opportunity?

Calculate the company after hedge profits per bushel : Calculate the company's after hedge profits per bushel of corn if the actual price of corn in six months is $3.50 per bushel.

What is your net profit on position : If you sell these options today on 10,000 SGD and at maturity SGD is quoted at bid price of 0.81 USD/SGD, what is your net profit on this position?

You make the first deposit at the end of the first year : you deposit the money in a bank account that pays 4% interest, and you make the first deposit at the end of the first year.

Internal rate of return-payback period for projects aspire : A calculation of the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period for projects Aspire and Wolf.

How can investors guide against inflationary economy : How can investors guide against an inflationary economy that may erode the value of their investments?

An inflation-indexed treasury bond : An inflation-indexed Treasury bond has a par value of $1,000 and a coupon rate of 6 percent.

User Account

All Pages