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svp [43]
3 years ago
13

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

at $123 per share on the market. How much profit or loss you will realize a on the investment? A. $500 loss B. $0 profit C. $300 profit D. $200 loss
Business
1 answer:
grin007 [14]3 years ago
4 0

Answer: Net loss = $2

Explanation:

Given that,

Purchase one IBM July 120 put contract for a premium of $5

IBM stock is at $123 per share on the market

In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.

Here,

Profit = $123 - $120 = $3

But, we have to deduct the premium paid that is $5

Therefore,

Net loss = Profit - premium paid

= 3 - 5

=$2 ⇒ This much loss realize on a the investment.

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matrenka [14]

Answer:

mainly because of the countries negative trade balance, but also because it is strictly regulated by the central bank which is the National bank of Ethiopia.

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2 years ago
The following information is available for Amos Company for the year ended December 31, 2017. Balance of retained earnings, Dece
kvv77 [185]

Answer:

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Explanation:

In calculating retained earnings for 2017, I began with prior year retained earnings of $866,000,deducted depreciation net of taxes not recorded previously.

After,having adjusted retained earnings for prior year, I added net income for the year 2017 of $216,000

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8 0
3 years ago
Once a manager has identified a problem, he or she can generate alternatives to that problem. after this is done, the manager
Liula [17]
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3 0
3 years ago
Upstream from Umami Snacks is the set of firms that supply the raw materials, information, and expertise to make the seaweed cri
kupik [55]

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