Finding the payout and the profit

Assignment Help Finance Basics
Reference no: EM131926254

Question: You purchase a put on IBM contract at $120 for a premium of $3. You hold the option until expiration when share price is $123. What is the payout and the profit? Please plot a graph. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131926254

Questions Cloud

How much will the mass of the solid decrease : If the molar mass of the solid in the cell is 300 g mol-1 and its vapour pressure is 0.224 Pa at 450 K, by how much will the mass of the solid decrease.
What will the value of your portfolio be : What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $30? $40, $50?
What should be the production schedule for the four months : A manufacturer of integrated circuits is planning production for next four months. What should be production schedule for IC341 and IC256 for the four months?
represented in the net present value of investment : The difference between the _____ and the _____is represented in the net present value of an investment. Please have explanation.
Finding the payout and the profit : You purchase a put on IBM contract at $120 for a premium of $3. You hold the option until expiration when share price is $123.
Maxwell distribution of speeds to estimate : Use the Maxwell distribution of speeds to estimate (a) the fraction of CO2 molecules at 300 K that have speeds in the range of 200 to 250 m s-1
Formulate the given staffing problem by using lp : A power company has just announced August 1 opening of its second nuclear facility. Formulate this staffing problem by using LP and solve it by using Excel.
What is the future value of the cash flows : If the discount rate is 17.4 percent, what is the future value of the cash flows in year 4? (Round time value factors to 6 decimal places and final answer.
Financing needs will be met by issuing new long term debt : The remainder of its financing needs will be met by issuing new long term debt at the end of 2017.

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!

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