User Account

All Pages

Calculate the payoff and the profits for investments

Assignment Help Finance Basics
Reference no: EM13853806

The following table lists prices of Apple options in April 2013 when Apple stock was selling for $420.

Expiration Date

Exercise
Price

Call
Price

Put
Price

July 2013

S390

S43.16

S14.60

 

420

25.75

27.85

 

450

14.20

45.90

Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $420. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round "Profit" answers to 2 decimal places.

 

 

Payoff

Profit

a.

Call option with exercise price of 5390

$

$

b.

Put option with exercise price of S390

 

 

c.

Call option with exercise price of S420

 

 

d.

Put option with exercise price of S420

 

 

e.

Call option with exercise price of S450

 

 

f.

Put option with exercise price of S450

 

 

Reference no: EM13853806

Questions Cloud

How use descriptive statistics to summarize the data : Use descriptive statistics to summarize the data.
Explain how the organization can come up with a solution : Explain how the organization can come up with a solution to have positive cash flow. If this were your organization and you could not meet the bills/obligations, how would you remedy this situation?
Outline hunter safety lab business model : Outline Hunter Safety Lab's business model. Discuss the strengths and weaknesses of the market research
Define institutions in the context of business strategy : Define institutions in the context of business strategy
Calculate the payoff and the profits for investments : Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $420.
Type of dependency that exists between city and team : type of dependency that exists between CITY and TEAM.
Anticipate particular size or model requests : He says he rarely ever gets complaints if the exact model is not available, as long as he has a vehicle available, so he does not try to anticipate particular size or model requests and lets randomness take care of that. Weekly demand is as follow..
Journalize the entries in good form on the general journal : Journalize the entries in good form on the general journal tab in the template. Post the journal entries to the appropriate T-accounts on the ledger tab in the template.
Calculate the amount of cash dividends paid : Calculate the amount of cash dividends paid during 2012. Calculate the depreciation expense incurred during 2012. Prepare a statement of retained earnings for the year ended December 31, 2012.

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a powerpoint presentation based upon a brics and

prepare a powerpoint presentation based upon a brics and mitsk country south africa. it is important to develop an

  A company has after-tax earnings of 39400 for the year the

a company has after-tax earnings of 39400 for the year. the firm adheres to a residual dividend policy with a

  Review of budget document of state of tennessee

The question is from Finance and it is about Review of Budget document of State of Tennessee, United States. This is part of Government Finance Officers Association as well as Distinguished Budget Presentation Award Program or Budget Awards Progra..

  Calculating change in shareholder wealth

Assume these facts about a levered firm: market value of interest's bearing debt = $370 and market value of common stock = $1,040.

  If he can earn 6 percent apr with monthly compounding on

johnson needs to have 60000 in 8 years. to reach the goal he intends to make monthly contributions to a savings plan.

  What is the projected inventory turnover ratio

All dollars are in millions. What is the projected inventory turnover ratio for the coming year?

  Q 1 dan is also thinking whether to issue coupon bearing

q. 1 dan is also thinking whether to issue coupon bearing bonds or zero coupon bonds. ytm on either bond issue will be

  What is the discount yield on these securities

He notices that a recent Treasury auction of 13-week Treasury bills, the lowest price bid for $10,000 bills was 97.569 percent of par. Can you help Ken understand the various yield calculations?

  Using marginal analysis and eva analysis

Finance questions based on  marginal analysis,  EVA analysis. Find  the current yield for Bond A.

  What is the expected return on the portfolio

You own a portfolio that is 34 percent invested in Stock X, 24 percent in Stock Y, and 42 percent in Stock Z. The expected returns on these three stocks are 7 percent, 20 percent, and 16 percent, respectively. What is the expected return on the po..

  Calculate each projects payback period cutoff

Calculate each projects payback period cutoff. Which would you accept if Puppy's payback period cutoff is 2 years?

  What is the best estate planning strategy

What is the best estate planning strategy when creating a trust for a married couple who have invested in a franchise worth $8,000,000 and growing? The couple also has kids together. Should they create a will or trust?

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