What is the payout and the profit

Assignment Help Financial Management
Reference no: EM131905289

Question

You purchase an IBM call contract at $120 for a premium of $5. You hold the option until expiration, when share price is $123.

What is the payout and the profit? Please plot a graph.

Reference no: EM131905289

Questions Cloud

The property for purposes of calculating any gain would be : If Ragan should now sell the home for $500,000, his basis in the property for purposes of calculating any gain would be:
What is the appropriate rate for use in discounting the free : The acquisition would be made immediately, if it is to be undertaken. Sally's pre-merger beta is 2.0, and its post-merger tax rate would be 34%.
Discuss how wireframe displays might be generated : Discuss how wireframe displays might be generated with the various visible-surface detection methods discussed in this chapter.
Devise an algorithm for viewing a single sphere : Devise an algorithm for viewing a single sphere using the ray-casting method. Write routine to produce surface contour plot for given surface function f(x, y).
What is the payout and the profit : You purchase an IBM call contract at $120 for a premium of $5. You hold the option until expiration, when share price is $123.
Develop an algorithm that would test a given plane surface : Develop an algorithm that would test a given plane surface against rectangular area to decide whether it is surrounding, overlapping, inside or outside surface.
What is the present value to be received : What will be the Future Value of $3800 6 years from today if the interest rate earned is 4.00% with monthly compounding periods?
Write a program that uses the depth-sorting method : Write a program that uses the depth-sorting method to display the visible surfaces of any given object with plane faces.
What is a private placement : What is the process of a security going through an IPO and what type of risk is involved for the company going public .

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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