1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mamaluj [8]
3 years ago
5

You write one MBI July 139 call contract (equaling 100 shares) for a premium of $17. You hold the option until the expiration da

te, when MBI stock sells for $150 per share. You will realize a ______ on the investment.
Business
2 answers:
stich3 [128]3 years ago
7 0

Answer: $600 profit

Explanation:

Call contract = $139

Number of shares = 100

Selling price per share = $150

Premium = $17

(Call contract - selling price) × number of shares

($139 - $150) × 100 = -$1100

Total premium = $17 × 100 = 1700

PROFIT / LOSS ON investment = - $1100 + $1700

= $600

OR

Short call profit = Min [0, ($139 - $150)(100)] + $1700 = $600

$600 profit

Bogdan [553]3 years ago
4 0

Answer:

$600 loss

Explanation:

A call option is defined as a contract that exists between ba buyer and seller of a call option to exchange securities held at a particular price within a specific period.

To calculate the profit realised on the investment

Profit from call option= (150- 139) * 100

Profit from call option= $1,100

Profit from premium= 17 * 100

Profit from premium= $1,700

Profit on investment= Profit from call option - Profit from premium

Profit on investment = 1,100 - 1,700 = -$600

So there is a loss of $600

You might be interested in
The three components that are most important for establishing credibility are competence, caring, and.
goldfiish [28.3K]

The three components that are most important for establishing credibility are competence, caring, and Character

Credibility includes objective and subjective elements of the credibility of a source or message. Authenticity goes back to Aristotle's rhetorical theory. Aristotle defines rhetoric as the ability to see potentially persuasive things in any situation. He classified the means of persuasion into three categories: ethos (reliability of sources), pathos (emotional or motivational appeals), and logos (logic used to support claims). Affect the recipient of the message. According to Aristotle, the term "ethos" deals with the personality of the speaker.

The speaker's intention is to appear believable. In fact, the speaker's psyche is the rhetorical strategy employed by the speaker with the aim of "instilling confidence in the audience." Credibility has two key components, he said, credibility and expertise, both of which have objective and subjective components. Reliability is based on subjective factors, but can also include objective measures such as perceived reliability.

Learn more about credibility here

brainly.com/question/1279931

#SPJ4

8 0
1 year ago
Describe the challenges and opportunities of globalization in a ""flattened"" world.
Ksju [112]

Answer:

The meaning of a 'flattened' world is that ,globalization, which can be described as inventions and various developments in the technology world , has created a level playing ground, where countries considered as small or minors are now competing with the super-power ones.

Explanation:

The major challenge of this is that , the rate competition has increased between countries that have great impacts on the resource area of businesses.

And the opportunities are that, new jobs are created or available especially in the information systems and other jobs or occupations involving services.

 Finding better suppliers and at a better price has also been considered as a big benefit because now there were more places to choose from globally.

4 0
3 years ago
Read 2 more answers
An incomplete life insurance application submitted to an insurer will result in which of these actions
Viefleur [7K]
No insurance coverage.
3 0
3 years ago
I was banned until I wasn't banned and I'm still here. How???
Valentin [98]

Answer:

waaaaassssssupppppppppppp

7 0
3 years ago
Read 2 more answers
A home electrical system is joined to the electric company's system at the junction of the
Alenkinab [10]
This is a breeze it is wires
5 0
3 years ago
Other questions:
  • List four valuable items that might be kept in an apartment or house. Next to each item, write the estimated dollar amount that
    7·2 answers
  • S.O.S <>
    6·1 answer
  • Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classif
    15·1 answer
  • The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Orange Company as
    5·1 answer
  • Which of the following is true about planned economies?
    8·1 answer
  • Calculate how many hours his non-salary employees will take to create a large order of 1,000 shoes. What kind of budget would Jo
    7·1 answer
  • Tom Gregory is the practice manager for a local urologist. The practice has a detailed set of financial policies dealing with re
    11·1 answer
  • Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses
    12·1 answer
  • By automating its shop floor, your company expects to save $54,000 annually. If the automation costs $450,000, what is the payba
    7·1 answer
  • On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to rece
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!