What is your profit-loss diagram of this protective collar

Assignment Help Financial Management
Reference no: EM132066933

On Jan 11, 2012, you purchased 100 shares of Apple, Inc., which closed at $167.09. First, you write one contract of the March 2012 $175 call at $3.65. Next, you buy one contract of the March 2012 $160 puts, which are trading at $4.50. What is your profit/ loss diagram of this protective collar? (Please mark ALL the critical points, including the breakeven point, maximum gain, and maximum loss)

Reference no: EM132066933

Questions Cloud

Create an essay evaluating the new acquisition processes : Create an essay evaluating the new acquisition processes in DoD Instruction.Analyze the degree DoD 5000.02 creates better clarification.
Find the approximate bond modified duration : Find the approximate bond’s modified duration by using changes in theinterest rate up and down by 5 basis points.
What is the total payoff on two options in your portfolio : If IBM stock is $97 on the expiration date (third Friday of July 2009), what is the total payoff on the two options in your portfolio?
Discuss about the given behaviours : Each of us perceives "ethics" from our own point of reference as to what is or is not ethical. This assignment asks you to consider ethics and whistleblowers.
What is your profit-loss diagram of this protective collar : Next, you buy one contract of the March 2012 $160 puts, which are trading at $4.50. What is your profit/ loss diagram of this protective collar?
The money in six months to buy at-the-money option : What investment today would guarantee that you had the money in 6 months to buy an at-the-money option?
Review problem on capturing and prosecuting the terrorist : In a hostage crises, is it ethical for a government to agree to grant a terrorist immunity if he releases the hostages, even though the government.
Double entry techniques for recording business transactions : Describe the double entry techniques for recording business transactions ? Design strategic performance indicators for a business organization.
Which one would you install and why : Suppose you are building a computer system from scratch and have complete discretion as to your choice of operating system. Which one would you install and why?

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