User Account

All Pages

Compute the percentage return of portfolio

Assignment Help Finance Basics
Reference no: EM132502652

Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stock's current price is $100, and a call option expiring in 6 months has an exercise price of $100 and is selling at a premium of $10. With $10,000 to invest, you are considering investing all $10,000 in the stock, buying 100 shares. Compute the percentage return of your portfolio 6 months from now if the price of FedEx stock is $80. Express your answer as a percent, i.e. if your answer is 0.10 = 10% then enter 10.

Reference no: EM132502652

Questions Cloud

Prepare schedules of cost of goods manufactured : Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement)
Mr fancyman has consulted you as a broker : An investor bought a plot of land at the cost of ¢1,500,000 in 1998.
What is the maximum price he can pay for the car : If he can get a five-year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?
What is the total indirect selling expense : When the company sells 21,750 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Compute the percentage return of portfolio : Compute the percentage return of your portfolio 6 months from now if the price of FedEx stock is $80
Do you know what happens to your msw : Do you know what happens to your MSW after it leaves your home - Waste, the "economy" and government policy - what a mix! Perhaps appropriate
Why do firms use the cash to buy back company shares : Why do firms use their cash to buy back company shares vs. pay down dept? As an investor how do you feel about this practice? Who wins?
What is the future value of annuity : What is the future value of this annuity, the minimum basis for a possible settlement with the relatives of the victim, if a fair settlement were indeed on the
Compare and contrast the various costing systems : Compare and contrast the various costing systems (managerial accounting)? And justify the use of job-order costing for a smaller business like a doggy day

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd