What is maryanne''s return from this transaction

Assignment Help Finance Basics
Reference no: EM131299841

Return on Stock Options. Maryanne paid $300 for a call option on a stock. The option gives her the right to buy the stock for $27 per share until March 1st. On February 15th, the stock price rises to $32 per share, and Maryanne exercises her option. What is Maryanne's return from this transaction?

Reference no: EM131299841

Questions Cloud

What you do if you realized that requirements were incorrect : What are some ways in which you can ensure that the requirements are complete and accurate? What would you do if you realized that some of the requirements were incorrect? How could you fix such inaccuracies?
Prepare a 2013 retained earnings statement : ACCT 3311 Exam 2 Take-Home Income Statement Prepare a 2013 multiple-step income statement for World Inc. including Components of Earnings Per Share (EPS) presentation - Prepare a 2013 retained earnings statement.
Suppose a transmission channel : Suppose a transmission channel operates at 3 Mbps and that it has a bit error rate of 10-3.Bit errors occur at random and independent of each other.Suppose that the following code is used.To transmit a 1, the codeword 111 is sent;To transmit a 0, ..
Impact of global recession on diversification strategy : Impact of Global Recession on Diversification Strategy. Why would a global recession possibly limit the potential benefits from international diversification?
What is maryanne''s return from this transaction : The option gives her the right to buy the stock for $27 per share until March 1st. On February 15th, the stock price rises to $32 per share, and Maryanne exercises her option. What is Maryanne's return from this transaction?
Explain why you selected the architecture of the case study : Describe your chosen architecture pattern. Explain why you selected the architecture of this case study. Explain how your chosen pattern could be applied to this case study.
What is chris'' return on the stock option : Return on Stock Options. Chris purchased a call option on a stock for $200. The option gives him the right to purchase the stock at $30 per share until May 1st. On May 1st, the price of the stock is $28 per share. What is Chris' return on the stoc..
Ohio corporations break-even point for sales of product : Ohio Corporation sells its product for $16 per unit and incurs variable costs of $10 per unit and total fixed costs of $12,000. What is Ohio Corporation's break-even point for sales of product?
What is the flaw in the decision : Inc. decided to discontinue Children's Shoes because it reduced income from operations by $17,000. What is the flaw in this decision, if it is assumed fixed costs would not be materially affected by the discontinuance?

Reviews

Write a Review

Finance Basics Questions & Answers

  What can be said about the generalization issue

Due to a strong campaign, some banks reached a response rate of over 60%, while others hardly reached 20%. To what extent did this bias the reliability of the results? What can be said about the generalization issue?

  What is the yield on a one year corporate bond with a 1000

what is the yield on a one year corporate bond with a 1000 face value that pays a 12 annual dividend if it was

  Find out external environmental scan

In order to develop effective strategies, it is critical to understand the marketplace environment. In this assignment you will explore the relationship between marketplace positioning based on environmental factors.

  What is the effective annual rate on this loan

You want to buy a new sports coupe for $73,800, and the finance office at the dealership has quoted you a 6.2 percent APR loan for 60 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

  Question regarding the probability distribution

A random variable X has the following probability distribution:

  Assume that the continuously compounded interest rate

assume that the continuously compounded interest rate equals 0.10.stock s has the current price of s0 70 and does not

  How to calculate the tax benefit for opportunity cost

The firm has a 13% weighted average cost of capital (WACC) and is subject to a 30% tax rate. The required discounted payback period is 4 years.

  Corrected mean and corrected standard deviation

The mean and the standard deviation of a characteristics of 100 items were found to be 60 &10 respectively at the time of calculations two items were taken as 5 & 45 instead of 30 & 20.

  Under a defined benefit plan the employer agrees to give

1. which of the following statements about pension plans if any is incorrect?a. under a defined benefit plan the

  Computation of revenue earned during the period

Computation of revenue earned during the period and Calculate the amount of subscription revenue earned by Evans Ltd

  Summarize the demographic information on these patients

Describe and summarize the demographic information on these patients. You may use tables or graphs (or both) for this purpose. Your goal is to convey to the reader an accurate snapshot of these patients. Support your response with correct scholarl..

  A us corporation has purchased currency put options to

a u.s. corporation has purchased currency put options to hedge a 100000 canadian dollar c receivable. the premium is

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