Calculate the possible price ranges for stock, Financial Accounting

Purchase price $2.15

Exercised Price: $37.50

Currently Trading at $37.00

In order to make the decision on the best course of action, two tables of calculations are needed:

1. One table for calculations on:

a. The possible outcomes of buying a call option for $2.15, exercise price $37.50

b. Possible price ranges for the underlying stock: 25 30 35 40 45 50 55 60

2. The possible outcomes of buying a put option for $1.65, exercise price $37.50

a. Possible price ranges for the underlying stock: 25 30 35 40 45 50 55 60

b. A second table for calculations on:

Deliverables

  1. A worksheet showing your calculations of the outcomes for the suggested stock price ranges for the call option buying strategy;
  2. A worksheet showing your calculations of the outcomes for the suggested stock price ranges for the put option buying strategy.

Please submit these to the drop box by the date to be specified.

Posted Date: 3/28/2013 5:25:48 AM | Location : United States







Related Discussions:- Calculate the possible price ranges for stock, Assignment Help, Ask Question on Calculate the possible price ranges for stock, Get Answer, Expert's Help, Calculate the possible price ranges for stock Discussions

Write discussion on Calculate the possible price ranges for stock
Your posts are moderated
Related Questions

Contribution and indemnity Generally the trustees are jointly and severally liable to the beneficiaries and a trustee sued may claim contribution from the others where although

unit selling price of products= $40 unit variable expense of product= $24 Total fixed expenses= 560,000 avg op assets= 3,000,000 1)how many units must the division sell each yea

The Major Assignment Business Case Study is about American Cable Communications' proposed acquisition of the firm Air Thread Connections. The case study is available from the folde

In the spring of each year, Steinbrook College's theater department puts on a contemporary play. Before the performance, the theater manager instructs student volunteers in their d

How do i find the retained earnings? What is the formula to find retained earnings? What is the retained earnings? Accounts payable $ 5,000 Notes payable $ 7,000 Accounts receivabl

A net loss resluts in a decrease in: a. Revenues b. Expenses c. Stockholder's Equity d. Liabilities

1. Jepsen Corp had the following transactions relating to shares of stock: • Issued 1,000 shares • Purchased 100 shares • Re-issued 50 shares • Declared and distributed a 2-1 stock

To decide in what zone should be placed a store which sells video-cassettes, the manager of a firm which sells and rents cassettes makes a study to estimate the demand for each sto

I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1.  Determine the number of gr