Answer: $498
Explanation:
A Put is an option that will only be exercised if the price of the underlying security which is the stock in this case, falls below the current price of $58.
This means that we will not include the 70% chance of increase in our calculation.
In a contract, there are 100 shares.
Expected profit = Contract price - (Prob. of dropping by 10% * 10% of stock) - (Prob. of dropping by 20% * 20% of stock)
= 730 - ( 20% * 10% * 58 * 100) - (10% * 20% * 58 * 100)
= 730 - 116 - 116
= $498
Answer:
The message should be brief and indirectly imply the refusal.
Explanation:
When refusing an applicant's request; it's standard practice to be polite and brief. Less words are very much commendable, to avoid emotion. Also, communication should be positive and respectful.
Answer:
13,384.62 shares
Explanation:
Current number of shares = $435,000 / $13
Current number of shares = 33461.53846154
Current number of shares = 33,461.54 shares
Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.
So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.
