User Account

All Pages

Calculate the maximum loss

Assignment Help Business Management
Reference no: EM131093424

1. A call option is purchased for $8 and exercised at its exercise price of 50. About six months later the stock is sold for $100. Calculate total gains or losses.

2. You have written a put option for $4 and it is exercised on you. The exercise price was 50.

a. Determine the cost basis.

b. Later on you sell the stock at $100. Calculate your gain or loss.

3. You expect the price of the stock to rise but in a range of 36 to 43 during the next 6 months.  A call option with exercise price of 35 has a premium (price) of 3 and a call option at exercise price of 45 has a premium (price of 1.50) 

a. Design an option spread (bull call spread) and calculate the net payment for it.

b. Calculate the maximum loss

c. Calculate the maximum gain

Reference no: EM131093424

Questions Cloud

Determine the computational burden of the algorithm : Determine the computational burden of the algorith
Is relationship between ethnicity - racism and inequality : As we observe the interaction of different peoples in a society, and certainly within societies in the United States, we are aware of the inequality of wealth, the access to new technology, how people with certain skin colors are treated different..
Manage food and beverage waste and recycling operations : Identify three issues to manage food and beverage waste and recycling operations and suggest solutions. Give an example from some organization or company or the military.
What are the monopolist profits : Econ 111: Principles of Economics- Accelerated Treatment - Quiz 5. A monopolist is facing a linear demand curve of Q = 200 - 2P, and MC= AC = 20. What are the monopolist's profits at Q*? Show these max. profits on your graph
Calculate the maximum loss : 1. A call option is purchased for $8 and exercised at its exercise price of 50. About six months later the stock is sold for $100. Calculate total gains or losses.
Give an estimate of saving in computations in terms of m l : Which algorithm is better if we wish to compute all points of the DFT? What happens if we want to compute only the points X(0), X(1), X(2), and X(3)? Establish a rule to choose between DIT and DIF pruning depending on the values of M and L.
Write your findings as a well-organized short report : For this final Graded Writing Assignment, you will compose a Short Report based on one of the scenarios outlined below. You must choose one of the scenarios listed below; papers submitted reflecting a scenario other than those listed below (even ..
Prepare necessary entries assuming nop stock is classified : Instructions: Prepare the necessary entries for 2006, 2007, and 2008, assuming the NOP stock is classified as a trading security.
Mortgage that requires annual payments : The bank is offerring a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will be your annual payment if you for this mortgage? (Round to nearest dollar)

Reviews

Write a Review

Business Management Questions & Answers

  Par value of holdings

If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is 4 years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) w..

  Explain a change and culture in leadership

Organizational Change: Explain a change, culture in leadership, implementation - how difficult do you think your proposed change would be to implement

  Leading manufacturer of integrated circuits

Pegasus International Inc. is a leading manufacturer of integrated circuits (chips) and related software for such specialty markets as communications and mass storage, as well as PC-based audio, video, and multimedia.

  Explain what is the economic order quantity

Explain What is the Economic Order Quantity and What is the total annual order and inventory holding costs for the EOQ and What is the reorder point without safety stock?

  Find more time in your day as a salesperson

Find More Time in Your Day as a Salesperson - Currently you are able to schedule four sales appointments per day that take roughly one hour each. In addition, three hours are used for follow-up with customers.

  Company inventory turnover ratio

JP Vineyards has sales of $808,000, a gross profit margin of 0.371, and inventory of $171,000. What is the company's inventory turnover ratio?

  The coca-cola company in japan

The Coca-Cola Company in Japan

  Replacement from a standard deck

Find the probability of getting four consecutive aces when four cards are drawn without replacement from a standard deck of 52 playing cards.

  Environments and organizations

determine the contexts in which they function. Explain how organizations relate strategically to their environments.

  Employment in security services

Workplace Security - what are the prerequisites for employment in security services?

  Which accounts will your team pursue first

What kind and form of communication (e-mail or phone call, for example) will get you the best customer engagement?

  User interface design mock-up of the organization

Building on your initial user interface (UI) design mock-up of the organization's program UI, the interface now needs to present more information to the user

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