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murzikaleks [220]
2 years ago
7

In early April, an investor buys 1 XYZ Oct 60 call for $9 and sells 1 XYZ Jul 70 call for $4. If the investor buys back the Jul

call for $1 and sells the Oct call for $12, what will the pretax profit or loss be?
Business
1 answer:
goldfiish [28.3K]2 years ago
6 0

Answer:

$600 profit

Explanation:

bought Oct Call at $9 and sold at $12 = $3 profit
sold Jul Call at $4 and bought back at $1 = $3 profit
total profit $6 per option x 100 shares = $600

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What is markerting management
Mnenie [13.5K]
The application, tracking and review of a company's marketing<span> resources and activities. ... Effective </span>marketing management<span> will use a company's resources to increase its customer base, improve customer opinions of the company's products and services, and increase the company's perceived value.</span>
4 0
3 years ago
Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years an
Hitman42 [59]

Answer:

P0 = $9.04279 rounded off to $9.04

Option c is the correct answer

Explanation:

Using the the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3

Where,

  • r is the required rate of return

P0 = 4 / (1+0.156)  +  4 / (1+0.156)^2  +  4 / (1+0.156)^3

P0 = $9.04279 rounded off to $9.04

3 0
3 years ago
Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas
AlekseyPX

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23    ...............1

D2 = 2.23 × (1.138) = 2.54    ...............2

D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g)    ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4     ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

4 0
3 years ago
The U.S. fiduciary monetary system: a. is one where money is not convertible to a valuable commodity such as gold. b. is the one
Minchanka [31]

The U.S. fiduciary monetary system is one where money is not convertible to a valuable commodity such as gold.

Option a

<u>Explanation: </u>

In fiduciary monetary system, the money is issued by the government and the value of the money depends uniquely on faith of the public that the currency represents command over services and goods.  The word fiducia is from Latin and it means trust or confidence.

Fiduciary money includes demand deposits of banks namely checking accounts. Fiduciary money is accepted depending on the trust its issuer commands.

The fiduciary currency is supplied in the economy by Fed. Fiduciary money can be classified into two categories namely,

  • Paper money - Includes all the banknotes  
  • Divisional currency  - Includes all the coins

8 0
3 years ago
If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what k
BigorU [14]

Answer:

industrial products

Explanation:

A company that does this and mostly favors a push strategy is usually selling industrial products. That is because a push strategy focuses on taking the product to the potential customer and showing them how it works as well as how it can benefit them, therefore pushing the product on them. Industrial Products are great for such a strategy since they require actual demonstration and can easily show the potential customer the actual value that the product can provide.

3 0
3 years ago
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