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Sergio039 [100]
3 years ago
5

You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If

you exercise the call today, what will be your holding-period return
Business
1 answer:
Mashutka [201]3 years ago
5 0

Answer:

73.9%

Explanation:

Calculation for what will be your holding-period return

You purchased a call option for $3.45 17 days ago. The call has a strike price of $45 and the stock is now trading for $51. If you exercise the call today, what will be your holding period return?

First step is to find the Gross profit

Using this formula

Gross profit=Strike price- Stock Trading amount

Let plug in the formula

Gross profit =$51 - 45

Gross profit= $6

Second step is to find the Net profit

Using this formula

Net profit=Gross profit-Call option

Let plug in the

Net profit is $6 - 3.45

Net profit= $2.55

The last step is to find the Holding period return

Using this formula

Holding period return =Net profit/Call option

Let plug in the formula

Holding period return=$2.55/$3.45

Holding period return= 0.739*100

Holding period return =73.9%

Therefore what will be your holding-period return is 73.9%

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Yes According to the Mid Point Method The degree to which customers are receptive to price changes is gauged by their price elasticity of demand.

<u>WORKING OF MID POINT METHOD</u>

Demand is considered to be elastic if consumer behaviour changes significantly in reaction to a minor change in price, as opposed to inelastic if customers alter their purchasing behaviour very little in response to a large change in price.

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Damm [24]

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<h3>What is supply?</h3>

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According to the Graph, The prices of the commodity is decreased from $20 to $5 and output is also decreased from 200 units to 100 units which implies the decrease in the prices of the product which further implies the decrease in the level of supply.

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Answer:

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Explanation:

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Answer:

a.

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b.

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Explanation:

a.

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<u>Equilibrium Price (P) calculation</u>

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Alborosie

Answer:

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