What is your net profit or loss on this investment

Assignment Help Financial Management
Reference no: EM131348650

You sold five put contracts on CTB stock at an option price per share of $1.90. The options have an exercise price of $45 per share. The options were exercised today when the market price was $39 a share. What is your net profit or loss on this investment? Ignore transaction costs and taxes.

Reference no: EM131348650

Questions Cloud

How organisation maintain its competitive advantage : MNG00114 Competitive Strategy Assessment: Business Strategy Report. Thus, for this assessment you are required to choose one of two prescribed case study organisations and conduct an analysis of that organisation's internal and external environment..
Think the corporation uses job order or process costing : Continuing your research with microsoft corporation, list some of products that microsoft corporation produces and explain why you think the corporation uses job order or process costing.
Opportunities for off-shore production : PC-World is a U.S. manufacturer of personal computers. The CEO is looking at opportunities for off-shore production. The selection of the country where PC-World will establish a production facility will depend on the following two factors
Describe your plan for achieving academic and career success : Describe your plan for achieving academic and career success and summarize the three topics/ideas that you found to be most influential.
What is your net profit or loss on this investment : You sold five put contracts on CTB stock at an option price per share of $1.90. The options have an exercise price of $45 per share. The options were exercised today when the market price was $39 a share. What is your net profit or loss on this inves..
How much will the carnot cycle thermal efficiency increase : Steam enters the turbine of a power plant at 200. psia, 500.°F. How much will the Carnot cycle thermal efficiency increase if the condenser pressure is lowered from 14.7 to 1.00 psia?
General price index : Suppose nominal GDP in 2012 was $100 billion and in 2014 it was $150 billion. The general price index in 2012 was 100 and in 2014, it was 120. Between 2012 and 2014, the real GDP rose by what percent?
Which currency is expected to appreciate in value : Which country do you think has higher interest rates—the United States or Canada? Which currency is expected to appreciate in value? Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar?
Determine the maximum possible thermal efficiency : Determine the maximum possible thermal efficiency of an atmospheric steam engine with a boiler temperature of 212°F.

Reviews

Write a Review

Financial Management Questions & Answers

  Maximum amount that company should pay for investment

Your company has the opportunity to make an investment that promises to pay $24,000 after 6 years. If your company has a required return of 8.5% on this type of investment, what is the maximum amount that the company should pay for the investment? Wh..

  Needs fixed income for the next ten years

Grandpa Russ thinks he needs a fixed income for the next 10 years. He currently has $10,000 in CDs, which are maturing at the end of this month.  What is the maximum price you should tell Grandpa to pay for each bond? What else would you advise Grand..

  What is internal rate of return and will you accept reject

A project has cash flows of -$152,000, $60,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project? What..

  What is the new divisor for the price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

  Calculate your total dollar return

Calculate your total dollar return.- Calculate your total percentage return.- Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it?

  Using the semi-annual? convention

Vitmix Industries Inc. is issuing a zero−coupon bond that will have a maturity of fifty years. The?bond's par value is? $1,000, and the current yield on similar bonds is? 7.5%. What is the expected price of this?bond, using the semi-annual? conventio..

  What about the portfolio beta.

If a portfolio has a positive investment in every asset, what about the portfolio beta? Is the portfolio beta less than that of every asset in the portfolio?

  Develop an arbitrage strategy using the spot rates

The annualized 6-month spot rate is 4% and the annualized 12-month spot rate is 6%. The annualized forward rate from the end of 6th month to the end of 12th month is 10%. Develop an arbitrage strategy using the spot rates and the forward rate.

  Prepare the balance sheet at the end of each year

Show the cash flows from the project each year.- Prepare the income statement for each year.- Prepare the balance sheet at the end of each year.

  Fixed coupon bond in terms of inflation risk

A floating rate bond is generally considered safer than a fixed coupon bond in terms of inflation risk. If a firm collects an account receivable, its cash ratio will rise. The federal funds market is a market in which commercial banks may buy or sell..

  Identify any arbitrage and explain how it would be captured

Suppose you observe a one-year futures price of $100,- If the futures option call price is quoted at $9.40, identify any arbitrage and explain how it would be captured.

  Amount of annual net cash flow generated by the business

Tawanna is considering starting a small business. She plans to purchase equipment costing $149,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $32,400 per year. what will be the amount of..

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