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Anna007 [38]
1 year ago
8

you are a speculator who sells a call option on swiss francs for a premium of $.06, with an exercise price of $.64. the option w

ill not be exercised until the expiration date, if at all. if the spot rate of the swiss franc is $.69 on the expiration date, your net profit per unit, assuming that you have to buy swiss francs in the market to fulfill your obligation, is: group of answer choices
Business
1 answer:
bekas [8.4K]1 year ago
8 0

Net profit per unit assuming that you have to buy swiss francs in the market to fulfill your obligation will be  $.01

The computation of the net profit per unit is given below:

= Exercise price + Premium - Spot rate on the expiration date

= $0.64 + $0.06 - $0.69

= $0.01

Net profit divided by the number of units sold = net profit for the time period.

To calculate how much of the selling price you ultimately keep, compare your net profit per item to the price at which you sell each item.

In order to determine the genuine value per unit, we added the premium and subtracted the spot rate on the expiration date from the exercise price.

To solve more questions of Net profit: brainly.com/question/4177260

#SPJ4

The complete question is:

You are a speculator who sells a call option on Swiss francs for a premium of $.06, with an exercise price of $.64. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is $.69 on the expiration date, your net profit per unit is:

a.-$.02.

b.-$.01.

c. $.01

d. $.02

e.None of the above.

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Answer:

The correct answer is letter "C": the sum of private and external costs.

Explanation:

<em>Neoclassical economics</em> -based on supply and demand as market drivers- define the social costs of transactions as the sum of private costs inherent in the operation and the costs consumers set because of being exposed to the transaction or the external costs. This cost differs from the <em>private costs</em> which are the expenditures a producer incurs in the production of a good or service.

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4 years ago
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Let the equation c = 2.32 n + 34,180 represent the cost of raising a child, c, on an income, n. if the corlone family has an inc
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Since the equation C = 2.32N + 34,180 where C is the cost of raising a child and N is the income. So, if the Corlone family has an income of $40,000, you use the value of N to solve for C:

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3 0
3 years ago
A house is closed on October 15. The annual insurance payment is $578 for the fiscal year of July 1 to June 30. The buyers will
Brums [2.3K]

Answer:

$313

Explanation:

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3 years ago
Yoko is defining her company's performance evaluation process. Which process requirement would help her organization most effect
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Answer:

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Explanation:

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​Tuscarora, Inc., a merchandising​ company, has the following budgeted​ figures: Jan Feb Mar April Sales $ 56 comma 600 $ 61 com
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