What will be your total profit or loss on option positions

Assignment Help Financial Management
Reference no: EM131967815

The market price of ABC stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a one-month call option contract on ABC stock with a strike price of $25 and an option price of $1.15. You also purchase a one-month put option on ABC stock with a strike price of $25 and an option price of $0.82. What will be your total profit or loss on these option positions if the stock price is $23.76 on the day the options expire? (Round answer to 2 decimal places. Do not round intermediate calculations).

Reference no: EM131967815

Questions Cloud

Processes and supporting processes : Differentiate between value creation (core) processes and supporting processes. Provide an example of each process.
Develop screen designs for two must stories : prepare a briefing note for the Organisational change and Training Team on the anticipated business impact of the system
Compare the net amount of funds initially available-inflow : For a public issue, the interest rate will be 12 percent, and the underwriting spread will be 3 percent. There will be $150,000 in out-of-pocket costs.
Methods and sources an organization : What are the most useful methods and sources an organization can use during the hiring process? What method would be best to use during the selection process?
What will be your total profit or loss on option positions : What will be your total profit or loss on these option positions if the stock price is $23.76 on the day the options expire?
Finding the flow back rate of the firm : Discuss the relationships between the required rate of return on a stock, the firm's return on equity, the flow back rate.
What are the components of the biosphere : What are the components of the Biosphere? List at least three differences between an r-selected species and a K-selected species.
Thoughts with ethical theory and examples : Support your thoughts with ethical theory and examples. Use our library for added research if needed.
Calculate the correlation coefficient : International Trade Assignments - Using data that you obtained for Assignment 1 for Paraguay and Poland, calculate the correlation coefficient

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