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maxonik [38]
1 year ago
11

the market price of northern mills stock has been relatively volatile and you think this volatility will continue for a couple m

ore months. thus, you decide to purchase a two-month european call option contract on this stock with a strike price of $42 and an option price of $2.60. you also purchase a two-month european put option contract on the stock with a strike price of $42 and an option price of $1.20. what will be your net profit or loss on these option positions if the stock price is $47 on the day the options expire? ignore trading costs and taxes.
Business
1 answer:
taurus [48]1 year ago
5 0

The  answer is $120.

Explanation: The computation of the net profit or loss is shown below: Before that we have to determine the following calculations

Net Profit from call option is = (Gain from Exercising Call Option - Option Premium paid) × Size of the Contract

= (($47 - $42) - $2.60) × 100 Shares

= $240

Net Loss from put option is

= (Option Premium paid) × Size of the Contract

= $1.20 × 100 Share

= $120

So, the net profit is  = Net Profit from Call Option - Net loss from Put Option= $240 - $120

= $120

To learn more about  net profit, click here.

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Thrift rents a compact car for $33 per day, and General rents a similar car for $20 per day plus an initial fee of $65. For how
Lyrx [107]

Answer:

The Correct answer would be, When Days will be greater than 5

Explanation:

There are two companies who give cars on rent.

Thrift rents a car for $33 per day

i-e

T=$33D

General rents the car for $20

i-e

G=$20D

and general charges an initial fee of $65

So  

G=$20 + $65

So according to question, for how many days it would be cheaper to rent from General.

So when charges by general are less than charges by thrift, as shown below:

65+20D < 33D

65 < 33D-20D

65 < 13D

D > 5

So the answer would be 5 Days.

7 0
3 years ago
What schools,parents and young people/learners can do to prevent alcohol and drug abuse amongst youth.
Anon25 [30]
I think keeping oneself occupied by relevant activities such as joining youth club that is proactive in various ongoing activities such as sports, fun field activities throughout the year on an ongoing basis can assist in keeping youth away from drugs and alcohol.
6 0
3 years ago
The major feature of zero-based budgeting is that it?
luda_lava [24]

The correct option is (B); Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated.

<h3>What is zero-based budgeting (ZBB)?</h3>

Zero-based budgeting (ZBB) is a budgeting strategy that entails creating a fresh budget from scratch each time, or from "zero," as opposed to beginning with the budget from the prior month and making adjustments as necessary.

Key features of zero-based budgeting are-

  • The zero-based budgeting (ZBB) methodology helps companies match their spending to their strategic objectives.
  • According to this methodology, firms must create their yearly budget from scratch each year in order to ensure that all of its components are affordable, pertinent, and capable of generating increased savings.
  • With zero-based budgeting, each budgeting cycle is started at zero.
  • This strategy requires explanation of all expenses, not just new ones.
  • The quickest path to achieving your financial objectives is still with a thorough spending strategy.

To know more about the zero-based budget, here

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The correct question is-

The major feature of zero-based budgeting (ZBB) is that it

A. Takes the previous year’s budgets and adjusts them for inflation.

B. Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated.

C. Assumes all activities are legitimate and worthy of receiving budget increases to cover any increased costs.

D. Focuses on planned capital outlays for property, plant, and equipment.

4 0
2 years ago
One benefit of a college education is being:
algol [13]
The answer is C - Being in college gives more opportunities to be employed due to your specialties.
8 0
2 years ago
Fact Pattern: Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales tot
sasho [114]

Answer: <u><em>The accounting for customer food checks by the supervisor. </em></u>

An unfitting classification of responsibilities existed because the supervisor was accountable for accounting for customer food checks and depositing acknowledgment and had the quality to set POS totals .

<u><em>Therefore, the correct option is (a)</em></u>

3 0
3 years ago
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