User Account

All Pages

What was randy’s net profit on this option

Assignment Help Finance Basics
Reference no: EM131117697

Randy Rudecki purchased a call option on British pounds for $.02 per unit.

The strike price was $1.45, and the spot rate at the time the option was exercised was $1.46.

Assume there are 31,250 units in a British pound option. What was Randy’s net profit on this option?

Reference no: EM131117697

Questions Cloud

Briefly summarize the key issues : Briefly summarize the key issues as well as the key decisions in the U.S. Supreme Court case Hamdan v. Rumsfeld - possible trial of persons suspected of involvement
Purchase returns and allowances : Assuming that prices have been stable, calculate the value, at cost, of Becker Department Stores' ending inventory using the last-in, first-out (LIFO) retail method. Be sure to furnish supporting calculations.
The information provided in the proforma statement : Assignment: Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and the Accounting Rate of Return (CO 6). (Hint: Depreciation is not a cash item)
How would you explain audit risk model to the decision maker : How would you explain the audit risk model to the decision makers at AV Imports and Exports? Research risk assessment using your textbook and online library resources and prepare a response.
What was randy’s net profit on this option : Randy Rudecki purchased a call option on British pounds for $.02 per unit. The strike price was $1.45, and the spot rate at the time the option was exercised was $1.46. Assume there are 31,250 units in a British pound option. What was Randy’s net pro..
Problem regarding the required rate of return : Compute the present value of a perpetuity that pays $ 9,754 annually given a required rate of return of 15 percent per annum.(Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
List the factors that affect currency put option premiums : List the factors that affect currency put option premiums and briefly explain the relationship that exists for each.
What speed would the bicyclist achieve without pedaling : A bicyclist is traveling at 25 km/hr when he encounters a 90 m hill. Neglecting road and wind resistance: If the hill is going up, what vertical elevation could the cyclist achieve without pedaling?
List the factors that affect currency call option premiums : List the factors that affect currency call option premiums and briefly explain the relationship that exists for each. Do you think an at-the-money call option in euros has a higher or lower premium than an at-the-money call option in Mexican pesos (a..

Reviews

Write a Review

Finance Basics Questions & Answers

  Decision to pursue an education in business or finance

Part 1: Explain how you made the decision to pursue an education in Business or Finance. Include a summary of expenses related to that decision, such as: cost of tuition, cost of books, the interest you may pay on any loans, and any other associat..

  Galveston shipyards is considering the replacement of an

galveston shipyards is considering the replacement of an eight year old riveting machine with a new one that will

  Markets a least semi strong

You do a study and find out that on average stock prices for firms decrease 3 percent evfor every 5 percent decrease in inside ownership.

  What was the under applied or over applied overhead for the

Cabot Corp. is a job lot manufacturer. The budget for the month of May calls for 7,000 direct labor hours to be worked. Budgeted overhead is $84,000 with a predetermined rate of $12 per hour. Overhead is applied based on actual direct hours worked. A..

  Calculate the carrying costs

Calculate the EOQ number of orders per year. (Round your answer to 2 decimal places (e.g., 32.16).)

  Purchasing a lifetime subscription

Your subscription to Jogger's World is about to run out and you have the choice of renewing it through sending in the $10 a year regular rate at the end of each year or of getting a lifetime subscription to the magazine through paying $100 today.

  The management of cash and marketable securities

1. Airy Window Units sells air conditioners for $125 per unit, and the variable cost to produce them is $87. The owner estimates that the fixed costs are $4,186,000.

  How would that ratio change if the firm

How would that ratio change if the firm can earn only a 10% rate of return on its investments?

  Which of the following statements is most

which of the following statements is most correct?a. acquiring firms send a signal that their stock is undervalued if

  What is its future value

An investment will pay $100 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 9% annually, what is its present value? Round your ans..

  Important for a business analyst

Why is it important for a Business Analyst to understand the different phases of the systems development process?

  Compute the expected rate of return

Demonstrate to your colleagues how you would calculate the expected rate of return,r-hat, also called r-hat, and Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Assume the weighting of the ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd