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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.

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The correct answer to the question above is:

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8 0
3 years ago
Inventory Ratio Calculations
tatuchka [14]

Answer:

Inventory Turnover Ratio for 2008=  3.223 Times

Inventory Turnover Ratio for 2009= 3.91 times

Explanation:

Inventory Turnover Ratio=  Cost of Goods Sold / Average Inventories

Inventory Turnover Ratio for 2008=  $632,000/ $201,000 + 191,100/2

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Inventory Turnover Ratio for 2009=  $ 731,000/ 186,850

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7 0
3 years ago
Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at bo
vazorg [7]

Answer:

B. The amount of equity reported by Frankfort Corporation is $672,000

Explanation:

Equity earnings

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= 1,680,000 * 40%

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Option B

Please comment if you face any issues****************

7 0
4 years ago
A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac
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Answer:

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Explanation:

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True! Instances of babies that are treated poorly both mentally and physically can equally affect the mental health of that child as they grow up.
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