Solution-Du pont stock price is going to decline

Du pont stock price is going to decline

Assignment Help Basic Statistics

Reference no: EM132039695

How do you calculate this question: Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.56 sometime during the next 5 months. For $ 333.80 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 79 per share. If you bought a 100-share contract for $ 333.80 and Du Pont's stock price actually changed to $ 82.84 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______? Show your answer to the nearest .01.

Reference no: EM132039695

Questions Cloud

What is the net amount paid : Assuming that the spot rate in 60 days is $.72, what is the net amount paid, assuming the company wishes to minimize its cost??

Expected percentage change of the pound : What is the maximum one-month loss in dollars if the expected percentage change of the pound during next month is -2 percent?

Record the purchase of equipment on april : Beaver Construction purchases new equipment for $63,720 cash on April 1, 2012. Record the purchase of equipment on April 1

Find the present value of the bond : Because of the limitations of WEBCT random numbers, some of the options may be trading below their intrinsic value. Hint, to find the present value of the bond

Du pont stock price is going to decline : How do you calculate this question: Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.56 sometime

What is the amount of rick income inclusion : Assuming that Rick made an election under section 83(b) when the stock was granted, what is the amount of Rick's income inclusion and tax liability

What is the highest net profit possible : You purchase a put option on British pounds for $.03 per unit. The exercise price is $1.36. A pound option represents 31,250 units.

What will be the net amount the firm will receive : The spot rate in six months is E1 for $1.40. What will be the net amount the firm will receive from the put options (put payoff minus premium)?

Prepare the income statement for longhorn corporation : Longhorn Corporation provides low-cost food delivery services to senior citizens. Prepare the Income Statement for Longhorn Corporation

User Account

All Pages

Du pont stock price is going to decline

Reference no: EM132039695

Reference no: EM132039695

Questions Cloud

Reviews

Write a Review

Basic Statistics Questions & Answers

Statistics-probability assignment

What is the least number

Determine the value of k

What is the probability

Binomial distributions

Caselet on mcdonald’s vs. burger king - waiting time

Generate descriptive statistics

Sampling variability and standard error

Estimate the population mean

Conduct a marketing experiment

Find out the probability

Linear programming models

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT