What is the lowest strike price

Assignment Help Finance Basics
Reference no: EM132740162

Mr. John invested in a reverse butterfly spread using only puts. He received 0.3 as initial investment for each contract. He made a loss of 1.3 when the stock price in the market is 20.9 and he can reach a maximum gain of 0.3 out of this strategy. The highest put premium in this strategy is 3.05 and the medium strike price is 20.5. Finally, the lowest put premium was 2500 basis points below the medium put premium

A. What was the lowest strike price?

B. What was the lowest strike price?

C. What was the lowest put premium is?

D. What was the medium put premium is?

E. What are the breakeven prices?

Reference no: EM132740162

Questions Cloud

Journalize the entries by Silverman Enterprises : Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4
Welcome to geometry dash : Geometry Dash is a rhythm-based platformer game developed and published by RobTop Games.
What is the npv of project : Your company is about to invest in a new printing press which will save it about $25,000 per year for the next five years
Prepare balance sheet as of jan fireflies began retail : Prepare balance sheet as of 31 Jan 2010 Fireflies began retail operations on Jan 1 2010 on that date it Issued 10,000 shares of $1 par value common stock
What is the lowest strike price : Mr. John invested in a reverse butterfly spread using only puts. He received 0.3 as initial investment for each contract. He made a loss of 1.3 when the stock
What is the net income for dragonflies corp : Total liabilities equal to $300,000, and contributed capital totaling $100,000. If R.E. at the beginning of the year was $80,000 what is the net income?
Journalize the entry by Senger Company : On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. Journalize the entry by Senger Company
Appropriate risk-adjusted discount rate : The appropriate risk-adjusted discount rate is 11%. What price per share would you suggest is fair?
What is the discount or premium from the issuance of bonds : What is the discount or premium from the issuance of the bonds payable? Aye Company is authorized to issue P10,000,000 of 6%, 10-year bonds

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