What is your net profit or loss on this investment

Assignment Help Financial Accounting
Reference no: EM133174753

Question - You sold twenty put contracts (Each contract contains 100shares) on Twin City stock at an option premium of $.90 per share. The options have an exercise price of $27.50. The options were exercised today when the stock price was $22.40 a share. What is your net profit or loss on this investment assuming that you closed out your positions at a stock price of $22.40? Ignore transaction costs and taxes.

Reference no: EM133174753

Questions Cloud

Show the carrying amount of the bond on initial recognition : The effective rate after the inclusion of transaction cost is 7.5913%. Explain and show the carrying amount of the bond on initial recognition
Understand the basic precepts of systems theory : Understand the basic precepts of Giddens's structuration theory and its applications made by Poole and McPhee to organizations
Americans with disabilities act-fair labor standards act : what a Green Branch Coffee manager can do to ensure compliance with the Act. Americans with Disabilities Act, Fair Labor Standards Act, Equal Pay Act
What is its current level of trade credit : Assuming that Milton currently waits until the end of the credit period to pay its raw material suppliers, what is its current level of trade credit
What is your net profit or loss on this investment : The options were exercised today when the stock price was $22.40 a share. What is your net profit or loss on this investment
Complex and dynamic nature of organizational change : Assess the complex and dynamic nature of organizational change. Analyze the processes of change in people, groups, and organizations.
Explain your scenario by each of the seven traditions : Differentiate among the seven traditions of communication theory and understand how each approaches the nature of communication and how meaning is exchanged
Prepare journal entry to record the issuance of the bonds : On August 1, 2022, Indigo Corporation issued $504,000, 8%, 10-year bonds at face value. Prepare journal entry to record the issuance of the bonds
What is cost of implementation : Imagine a vendor responded to your request for a HRIS proposal. What is the cost of implementation (include dollar estimates)?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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