What would be your pre-tax net profit be

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Suppose you believe that Alpha Corporations stock price is going to decline from it's current level of $83.50 something during the next 3 months. you could buy a 3 month, one contract of put option at the strike price of $85 per share. If you bought this option for $425.25 and Alpha's stock price actually dropped to $61, what would be your pre-tax net profit be?

If you are 32, want to retire in 35 years and be able to withdraw $50,000 for each year in retirement, and expect to live to age 90, how much do you need to invest at 6.5% each year (to the nearest dollar) The dividend growth rate is expected to be constant at 25% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If High Growth's required return is 12.5%, what is the company's current stock price?

Reference no: EM131627626

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