What would your pre-tax profit be

Assignment Help Financial Management

Reference no: EM131625118

Suppose you believe Alpha Corporation's stock price is going to decline from its current level of $83.50 sometime 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 brought this option for $425.25 and Alphas stock price actually dropped to $61, what would your pre-tax profit be? PLEASE SHOW WORK.

Reference no: EM131625118

Questions Cloud

Full payments required and size of concluding payment : Find the number of full payments required and the size of the concluding payment.

Raise money to fund firm long-minus term investments : Determining the best way to raise money to fund a? firm's long-minus term investments is called

What the bonds ytm and ytc : The bond is callable in five years at a call price of $1,080. The price if the bond today is $1,075. What the bonds YTM and YTC?

What is company current stock price : If High Growth's required rate of return is 12.5%, what is company's current stock price?

What would your pre-tax profit be : IF you brought this option for $425.25 and Alphas stock price actually dropped to $61, what would your pre-tax profit be?

Affected by the journal entry on that date : What accounts would probably be affected by the journal entry on that date?

What is the implied interest rate on treasury bond : What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16?

The investment function of finance helps : The investment function of finance helps

Capital budgeting criteria-ethical considerations : A mining company is considering a new project. Because the mine has received a permit, the project would be legal. Calculate the NPV and IRR with mitigation.

User Account

All Pages