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vitfil [10]
3 years ago
6

An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e

qual the_______________.
[A] strike price
[B] strike price plus the premium
[C] strike price minus the premium
[D] market price of the stock when the put was exercised
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price -  Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

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Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next
lora16 [44]

Answer:

$41.96

Explanation:

The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).

Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)

                                     = 4.25 x (1 + 3%)/(12.5% - 3%)

                                     = 46.08

Then value of the stock is calculated as below:

Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3

                                  = 41.96

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3 years ago
Predict how sports and entertainment marketing will change over the next decade.
Kitty [74]

Answer:

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Explanation:

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3 years ago
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Incidents and diseases, although normally considered confidential, that must be reported to federal, state, or local agencies come under the heading of Mandatory disclosure.

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If one party requests support from the other, the judge will also need a clear picture of the parties’ finances so he or she may calculate a fair award. At WiseLieberman, PLLC, our Boca Raton divorce lawyers ask clients to provide us with the required financial documents so are able to better help them throughout the property division proceedings. Armed with the appropriate information, our lawyers have better insight into a couple’s financial situation and take the necessary steps toward a favorable outcome.

Learn more about Mandatory disclosure here

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4 0
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DochEvi [55]

A and D are the correct answers . You are welcome .

6 0
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The best way to research an expensive product is to? A. Visit multiple company websites B. Watch many television commercials C.
uysha [10]
All of them are good options, but I would say that D would be the most practical. This is because you’re able to find a large amount of information about a product and view its uses in your situation without paying the cost of the actual product itself.
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