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posledela
3 years ago
8

You purchase one IBM July 120 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se

lls for $123 per share. You will realize a ______ on the investment. $200 profit $200 loss $300 profit $300 loss
Business
2 answers:
QveST [7]3 years ago
8 0

Answer:

$200 loss

Explanation:

Long call profit = Max [0, ($123 - $120)(100)] - $500 = -$200.

Ivahew [28]3 years ago
4 0

Answer:

$200 loss

Explanation:

A call option allows the investor to purchase a security at a fixed price in a future date (called the expiration date). In this case, the call option allowed you to purchase 100 IBM shares at $120 per share. In order to determine the profit r loss resulting from this investment, you have to consider the price you paid for the call option which is $5.

long call profit = Max [0, ($future price - $call price)(100 shares)] - (call price x 100 shares) = Max [0, ($123 - $120)(100)] - $500 = -$200 or $200 loss.

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Answer:

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Explanation:

6 0
3 years ago
Al invested $7,200 in an account that pays 4 percent simple interest. how much money will he have at the end of five years?
Gre4nikov [31]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Below are the choices that can be found form other sources:

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3 years ago
Phil wanted the computer that amy had, so he just took it. this is an example of distribution by _____ . force contests lottery
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4 0
3 years ago
Read 2 more answers
The strategies used to promote generalization will also make skill maintenance more likely to occur.
Murljashka [212]

Answer:

True

Explanation:

Generalization creates a set of common practice which is further considered as an identifiable acceptable standard for the instance.

As for example if we state that a person is good at cooking, on the basis on generalization it will be considered necessary and obvious that the person knows the skills of cooking basic food of that region.

Generalization thus, creates a kind of basic skills in every person of that domain. This will influence people to develop more skills.

6 0
3 years ago
You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for 3 years. Calculate the outstanding ba
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Answer:

Explanation:

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5 0
3 years ago
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