What is your position delta

Assignment Help Finance Basics
Reference no: EM13305619

You own 1,000 shares of XYZ and have purchased ten protective put contracts. The puts have a delta of -0.317.

A ) What is your position delta?

B ) Instead of buying puts, how many of your shares should you sell short to achieve the same result?

 

Reference no: EM13305619

Questions Cloud

Company claim to be implementing any formal quality theory : Does the company claim to be implementing any formal quality theory? If so, do the claims stand up to scrutiny and do the company's claims regarding quality match the reality?
Find the criticalangle for internal reflection inside block : A material has an index of refraction of 2.050. What is the critical angle for internal reflection inside a block
What is the significance and importance of sound business : Such concern has centered on esoteric financial products such as derivatives that are used to manage risk. What is the significance and importance of sound business decision-making in risk and risk management in business?
Determine maximum wind load that cavity wall is used : determine the maximum wind load that the cavity wall , bothe wythes are fully grouted but unreinforced ,and type S mortar portland cement is used . prism strength is equal to 2666psi for the concrete block wythe and 5333 psi for the brick wythe.
What is your position delta : You own 1,000 shares of XYZ and have purchased ten protective put contracts. The puts have a delta of -0.317.
Determine how much coffee has spilled out of the beaker : During an all-night cram session, a student heats up a 0.836 liter (0.836 x 10- 3 m3) glass (Pyrex) beaker of cold coffee. How much coffee (in cubic meters) has spilled out of the beaker
How much would you have just after you make the 5th deposit : Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
A population of sunflower plants follows a normal : The amount of growth during a set 15-day period for a population of sunflower plants follows a normal distribution with μ=3.07 cm and σ=0.40 cm.
Determine the temperature of the blood : Blood can carry excess energy from the interior to the surface of the body, where the energy is dispersed in a number of ways. determine the temperature of the blood

Reviews

Write a Review

Finance Basics Questions & Answers

  Which plant should the company choose

Whichever plant is chosen, it will not be replaced when it wears out. If the tax rate is 34% and the discount rate is 11%, which plant should the company choose?

  What is the value of an investment

What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Calculate the depreciation tax shield for this project

The machine falls into the MACRS 3 year class life category. Assume a tax rate of 30% a discount rate of 12%.

  Construct a payoff table using the expected value model

Estimate the financial risks of manufacturing 6,000 units of a product rather than buying them from a vendor. Manufacture = $50,000 one-time set up cost + $60/unit

  What are possible drawbacks associated with seeking advice

What are possible drawbacks associated with seeking advice from a financial planning professional? How might these concerns be minimized?

  What rate of return is built into the annuity

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

  At what tax rate would an investor be indifferent

Corporate bonds issued by a corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds?

  Review the key problems

I have just been hired through the new president of Playword Greeting Cards, an established company that sells greeting cards and collectibles to its own line of company-owned and franchise stores.

  Determine market capitalization

In March 2005, General Electric had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share.

  Determine the horizon value

Determine the horizon value  at 2016 if growth from 2015 remains constant.

  Business question on present value

Illustrate out the term present value? Find out the future value of $1,000 invested for ten years at ten percent interest compounded annually?

  Calculate percent change in price

Market, Inc. has a 7 year, 6% annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5%.

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