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
sukhopar [10]
3 years ago
11

The price of a stock on February 1 is $48. A trader sells 200 put options on the stock with a strike price of $40 when the optio

n price is $2. The options are exercised when the stock price is $39. The trader's net profit or loss is
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
3 0

Answer:

$200

Explanation:

Given that,

Price of a stock on February 1 = $48

Trader sells = 200 put options

Strike price = $40

Option price = $2

Options are exercised when the stock price = $39

Net profit (Loss):

= Stock price - Strike price + Premium

= $39 - $40 + $2

= $1

The net gain for one put option is $1.

Therefore, the total net gain for 200 put options is as follows:

= 200 × $1

= $200

Hence, the trader's net profit is $200.

You might be interested in
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:
Oliga [24]

Answer:

                          Hubs Sprockets

Direct Materials   29            17

Direct Labor        13.3            5.7

Overhead            14.65          0.24

Unit Cost              56.95       22.94

Explanation:

<u><em>Labor:</em></u>

Hubs: 0.7 hours per unitx 19 labor rate = $13.3

Sprockets 0.3 x 19 = $5.7

<u><em>Direct Materials:</em></u>

Hubs $29

Sprockets $17

<u><em>Overhead rate</em></u>

Activity                         Pool   Hub          Sprockets

Machine Setups            225   125(55.56%) 100(44.44%)

Special processing 3900 3900    

<u>Machine Setups</u>

27,000 x 55.56% /13,000 units:  $   1.1538  

27,000 x 44.44% / 50,000 units  $  0.24

<u>Special Processing</u>

175,500/13,000 = $13.5

Total overhead

sprockets: $0.24

hubs: $14.65

Units cost:

hubs: 13.3  + 29 + 14.65 = 56.95

sprockets: 5.7 + 17 + 0.24 = 22.94

6 0
2 years ago
Pdq company $10 par common stock is currently trading at $40. pdq is currently paying a common dividend of $.20 per share quarte
geniusboy [140]

Yields are based on annual returns. The formula for current yield is:

$.80/ $40 = 2.00%

Convertible preferred shares may be transformed into common stock at a set conversion ratio. as soon as the marketplace charge of the corporation's commonplace stock rises above the conversion rate it is able to be profitable for the favored shareholders to transform and comprehend an immediate profit.

To find the image of a stock one may want to consult among other resources the usual and negative's stock manual which is now part of an S, P web provider called net benefit. It offers tablet summaries of enterprise history and overall performance. The legal shares, as the name implies are the maximum wide variety of shares that the employer is authorized to have difficulty as stated in its articles of incorporation.

Learn more about stocks brainly.com/question/1193187

#SPJ4

4 0
9 months ago
Read 2 more answers
Which of the following items are likely to be normal goods for a tropical customer? which is likely to be inferior goods?
VikaD [51]
Option B. paper plates
8 0
2 years ago
On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jami
Setler [38]

Answer: $31,250

Explanation:

The amount from the gain that Jamie may exclude from her gross income in year 2 will be calculated thus:

= $250,000 × 3/24

= $31,250.

Therefore, Jamie may exclude $31,250 from the gross income in year 2.

Thanks

6 0
2 years ago
Since 2010, the interest rate on passbook accounts and certificates of deposit has:______.
Dominik [7]

Since 2010, the interest rate on passbook accounts and certificates of deposit has been moderate. In exchange for keeping the money on deposit for a set amount of time, top-paying certificates of deposit (CDs) offer interest rates that are higher than those offered by the best savings and money market accounts. Compared to stocks and bonds, CDs offer a smaller potential for growth but a non-volatile, fixed rate of return.

CD are also a safer and more conservative investment. Almost all banks, credit unions, and  brokerage companies provide a selection of CD choices. Shopping around offers major benefits because the best CD rates that are nationally available are often three to five times higher than the industry average for every term.

To learn more about money market, click here

brainly.com/question/14059213

#SPJ4

7 0
1 year ago
Other questions:
  • Budgeted sales in Acer Corporation over the next four months are given below: September October November December Budgeted sales
    14·1 answer
  • MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per
    15·1 answer
  • The demand for emeralds tends to be very elastic. This is because emeralds are more of a _____________. It also means that a 33%
    7·1 answer
  • What is the present worth of these future payments? (a) $25,500 eight years from now at 12% com-pounded annually. (b) $58,000 tw
    12·1 answer
  • I will gladly appreciate whoever answers this
    11·1 answer
  • Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
    14·1 answer
  • Departmental overhead rates are preferred over plantwide rates when: Multiple Choice The plant makes a single product. The produ
    5·1 answer
  • The following information is for Hulk Gyms' first year of operations. Amounts are in millions of dollars. The enacted tax rate i
    5·1 answer
  • Patrick's lease is ending soon, and he wants to rent at a different apartment complex. He
    10·2 answers
  • wilson brothers partnership has the following income and expense items: gross receipts $500,000 cancellation of debt 15,000 roya
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!