What will be overall gain or loss for alston corporation

Assignment Help Accounting Basics
Reference no: EM132778937

Assume you sell 100 shares of Alston Corporation short at P43. You also buy a 40 call option for P4.80 to protect against the stock price going up.

Problem a. If the stock ends up at P60, what will be your overall gain or loss?

Problem b. If the stock ends up at P20, what will be your overall gain or loss?

Reference no: EM132778937

Questions Cloud

Pass journal entries to correct each of the error discovered : Discount received of KES 2,500. Pass journal entries to correct each of the errors discovered and ensure the suspense account balance is cleared to zero.
Alibaba current business : Then, research Alibaba's current business, entrepreneurial history, and the industry it operates in.
List two common processes that you perform : What types of non-educational institutions perform similar processes and might be candidates for benchmarking?
Was your member in support or in opposition to the ahca : Was your member in support or in opposition to the AHCA? State three points that you would cover in support or opposition to your representative's position.
What will be overall gain or loss for alston corporation : If the stock ends up at P20, what will be your overall gain or loss? Assume you sell 100 shares of Alston Corporation short at P43. You also buy 40 call option
Traditional multinational firm and internationalizing SME : What do you perceive to be the critical differences between a traditional multinational firm and an internationalizing SME?
What will be overall gain or loss : If the stock ends up at P50, what will be your overall gain or loss? Assume you sell 100 shares of Levis Corporation short at P72. You also buy a 70 call option
Prepare the journal entries to account for the bond : Face value $500,000; Annual coupon rate 6% paid on 30th June each year. Prepare the journal entries to account for the bond
International business negotiation : How information sharing and the creative use of trade-offs can create joint gain and lead to an integrative agreement in an international business negotiation

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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