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Arisa [49]
3 years ago
14

Rosa purchased three call option contracts on ABC stock with a strike price of $27 when the option premium was quoted at $1.1. T

he option expires today when ABC stock price is $29 at the market. She pays $10 as trading costs in total. What is the net profit on this investment?
Business
1 answer:
IrinaK [193]3 years ago
8 0

Answer:

Explanation:

Profit on a long call option = max(St - X, 0) - premium paid  

Profit on a long call option = max(29 - 27, 0) - 1.1

Profit on a long call option = max(2, 0) - 1.1

Profit on a long call option = 2 - 1.1

Profit on a long call option = 0.9 per share

Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts  = 0.9 * 100 * 3  = $270

Net profit on this investment = 270 - 10

Net profit on this investment = $260

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Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
KonstantinChe [14]

Answer:

C. Scenario Analysis.

Explanation:

As Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales price, and the cost estimates. The type of analysis that Jamie is doing is best described as scenario analysis. Scenario analysis is basically conducted to know to estimate the unfavorable events development in the market and within the firm as well. It is applied to know about the worst possible situation which can happen and how it can effect the market as well as organization.

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3 years ago
An employee of yours often offers excellent analysis and is able to quote facts and figures from memory during meetings; and the
Genrish500 [490]

Answer:

Realized strength

Explanation:

CAPP MODEL

This is simply called "Centre of Applied Positive Psychology".

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This is are known to be more of fluid than personality traits and can occur over one's lifetime through different situations we experience.

The four quadrants of CAPP's Realise2 strengths model includes

1. Realized strengths

2. Unrealized strengths

3. Learned behaviours

4. Weaknesses.

Strengthss

This is simply known as an important or more so than weaknesses, a number of divisions are used by positive psychologist to help identify and measure your strengths. It is simply known as an attribute or quality of an individual that gives or accounts for successful performance.

The approach to strengths fully realized is simply to identify strengths and weaknesses to improve performance.

4 0
3 years ago
A company is considering two projects. Project 1 has an initial investment of $60,000 and expected cash inflows of $20,000 each
Vikki [24]

Answer:

Project 1

Explanation:

The computation of the payback period is shown below:

As we know that

Payback period = Initial investment ÷ Net cash flow

For project 1

The payback period would be

= $60,000 ÷ $20,000

= 3 years

For project 2

The payback period would be

= $80,000 ÷ $20,000

= 4 years

Based on the payback period, project 1 should be chosen as the initial amount would be recovered in 3 years instead of 4 years shown in project 2

6 0
3 years ago
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PSYCHO15rus [73]

Answer:

Segmentation.

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When a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by the consumer, this is an example of market segmentation.

Market segmentation can be defined as the process of aggregating potential consumers (buyers) into a collective groups having common or related needs and are most likely to respond similarly to marketing techniques. These consumers share some traits or characteristics together and these include locations, needs, interests,

A good market segmentation base are divided into four (4) and these are; the behavioral, demographic, psychographic and geographical. Also, these variables are used to determine its strategy or techniques for a market segmentation.

Additionally, tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as segments of one.

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3 years ago
Zimmer-centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. they are particularly i
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The correct answer is Demography

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The demography most directly explains its continued growth.

8 0
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