What is your net profit or loss on this investment

Assignment Help Accounting Basics
Reference no: EM133164834

Question - Three months ago, AXE stock was selling for $44.25 a share. At that time, you sold three put options on the stock with a strike price of $45 per share and an option price of $1.75 per share. The option expires today when the value of the stock is $42.50 per share. What is your net profit or loss on this investment? Ignore commissions and taxes. Round the answer to the nearest dollar. Enter as positive if a profit; enter as negative if a loss.

Reference no: EM133164834

Questions Cloud

What is the income statement and total cash flow : The overall cost of capital of CougCoffee Puma Plundge is 14 percent. What is the income statement and total cash flow
Create a relationship between two tables : Create a relationship between two tables. Specify referential integrity between the Bookkeeper table (the one table) and the Client table (the many table)
Diversity equity and inclusive training : How can Diversity Equity and Inclusive (DEI) Training be implemented for senior management or leadership in a company? what are some of the Recommendations such
Modern competitive environment of business : Select one of the four approaches to social responsibility (obstructionist, defensive, accomodative, proactive) and explain how this stance can be effective in
What is your net profit or loss on this investment : The option expires today when the value of the stock is $42.50 per share. What is your net profit or loss on this investment
Process of preparing for collective bargaining : 1. How does adequate strategic planning help in the process of preparing for collective bargaining?
What can a team learn about hr from the hr simulator : What can a team learn about HR from the HR Simulator? How would you make decisions in a team or on your own?
Describe the demands and opportunities diverse workforce : Describe some of the demands and opportunities that a diverse workforce make on managers. include incorporate theoretical arguments/research for building your c
Examining the ethics of embryonic stem cell research : You are a medical administrator looking at new treatments for your facility. In one of the treatments, there is a 95% success rate curing an illness that freque

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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