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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

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Neal joins Filestene Inc. as an executive designer. The HR manager informs him that he will have to join the labor union within
Gnesinka [82]

Answer: (E) Union shop

Explanation:

 The union shop arrangement is refers to the process in which we require the number of workers for join and also participate in the specific union and it is also called as the post entry or the closed shop.

The workers or the union representatives also providing the various types of benefits in the specific time period. Depending on the different protection level the trade unions are varying nation to nations.

According to the given question, the Neal's human resource manager is basically referring to the union ship that is related to the union membership.    

Therefore, Option (E) is correct answer.  

7 0
3 years ago
Why do governments exist? (Choose three responses)
Karo-lina-s [1.5K]
B. To provide law and order
3 0
3 years ago
Read 2 more answers
The exercise price of the options is $100 per share, all options are European and the stock does not pay any dividend. The call
Ber [7]

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + \frac{100}{(1+r)^t} = S + P    .....................1

here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1

C + \frac{100}{(1+r)^t} = S + P

25 + \frac{100}{(1+0.5)^2} = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

6 0
2 years ago
Survey
qaws [65]
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John's employer - ProperLiving Widget Engineering & Design


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I do not know

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I do not know


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I do not know


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Yes


8. Select what would happen to your 1) taxable income and 2) tax liability when you are able to claim a deduction such as student loan interest?

1) lower 2) higher


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4 0
3 years ago
Why is it important for businesses to understand the role of economics?
MrRa [10]

Answer:

Business economics often handles the analysis of various costs that business firms incur. Every business always desires to minimize their costs and maximize its profits by embracing different economies of scale. Nonetheless, the firms fail to determine exact costs that are involved in the production process.

6 0
3 years ago
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