1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bogdanovich [222]
3 years ago
9

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a s

trike price of $40. What is the maximum profit for this position
Business
1 answer:
Nuetrik [128]3 years ago
7 0

Answer: $2

Explanation:

From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.

The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:

= $40 - $38

= $2

You might be interested in
Haddie wrote a check to the grocery store for $156.00. However, when she looks at her check register later that night, she sees
miss Akunina [59]
Depends on the banks policy. My bank is pretty good, and with my opt in overdraft protection, there are no incurred fees.
6 0
3 years ago
A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its r
11111nata11111 [884]

Answer: 88.89 or 89

Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.

Given the following ;

Portfolio value(p) = $20million

Portfolio Beta (b) = 1.2

Index price (i) = 1080

Multiplier = 250

Future value(A) = index price × multiplier

Future value(A) = 1080 × 250 = 270000

Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value

N = ($20,000,000×1.2)÷270000

N = 24000000 ÷×270000

N = 88.8888=88.89

N = 89 (NEAREST whole number)

7 0
3 years ago
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2016 and 2017.
Step2247 [10]

Answer:

Explanation: Ik weet het echt niet en ik ga je plagen met mijn antwoord, ik verwacht niet dat je je moeder afbreekt op zoek naar dit haha.  

7 0
3 years ago
What do u mean by book keeping why is it important?​
olchik [2.2K]

Jawaban

Bookeeping involves the recording, on a regular basis, of a company's financial transactions. ... With proper Bookkeeping, companles are able to track all information on its books to make key operating, investing, and financing decisions. Bookkepers are individuals who manage all financial data for companies.

8 0
3 years ago
Read 2 more answers
One important benefit of a multiparty system over a two-party system is that ____________.
Musya8 [376]
<span>Actually one important benefit of a multiparty system over a two party system is that there will not be any single powerfull person controlling like a king or queen what ever and when ever he or she wants, without considering or taking consent of main important peoples, and also it gives more opinions and options in a multiparty system for the benefit of people.</span>
3 0
4 years ago
Other questions:
  • On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
    9·2 answers
  • Prepare general journal entries to record the following transactions for the Harris
    13·2 answers
  • Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2018, the FIFO cost of the ending
    14·1 answer
  • Open-market operations involve _____ and _____ securities to influence the money supply.
    13·2 answers
  • 4. Suppose you hold a PUT option on Israeli shekels with a strike price of 3.4207s/$. If the spot rate on the final day of the o
    13·1 answer
  • One effect of a minimum wage in the market for low-skilled labor is a a. surplus of low-skilled labor.
    15·1 answer
  • What are the remains after the costs of running a business have been paidA. stockB. taxesC. profits
    10·1 answer
  • Drag the tiles to the correct boxes to complete the pairs.
    13·1 answer
  • each time mayberry nursery hires a new employee, it must wait for some period of time before the employee can meet production st
    12·1 answer
  • Why Are Dogs Color Blind????????
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!