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
kenny6666 [7]
3 years ago
9

A customer sells short 100 shares of ABC at $35 and buys 1 ABC Jul 35 Call @ $3. The stock falls to $30 and the customer closes

the option contract at $1 and buys the stock at the current market price. The customer has a:A. $200 lossB. $300 lossC. $200 gainD. $300 gain
Business
1 answer:
LUCKY_DIMON [66]3 years ago
5 0

Answer:

The answer is $300 gain.

Explanation:

Operations:

  • Short 100 shares of ABC at $35 each= 100 * 35 = + $3,500
  • Buy 1 ABC Jul 35 Call @ $3 (one call equals to 100 shares)= 100 * (3) = $(300), accumulated = + 3,500 - 300 = + 3,200
  • Closes the option contract at $1 = 100 * 1 = + $100, accumulated = + 3,200 + 100 = + 3,300
  • Buys the stock at the current market price (buys 100 stock @ $30 each)= 100 * (30) = $(3,000), accumulated = + 3,300 - 3,000 = + $300.
You might be interested in
A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.
Svetach [21]

If there is a withdrawal of cash from a bank which does not go below the required reserves, the withdrawal will not change money supply but will reduce bank checkable deposits.

<h3>What does withdrawing from a bank do?</h3>

If one withdraws money from a bank, it will reduce the bank's checkable deposits as these are made of cash that was deposited by entities.

As regards total money supply however, these withdrawals will only have an impact if the withdrawal causes bank reserves to fall below the required reserves.

Find out more on required reserves at brainly.com/question/10684321.

4 0
3 years ago
What is in dynamic equilibrium ??????? I need it for my physical education exam​
choli [55]

Answer:

A dynamic equilibrium is a chemical equilibrium between a forward reaction and the reverse reaction where the rate of the reactions are equal.

Explanation:

8 0
3 years ago
An investor buys a call at a price of $4. 50 with an exercise price of $40. at what stock price will the investor break even on
Maksim231197 [3]

Break-even price of call option = Exercise price + Premium Paid

So,

Break-even Stock Price = 40 + 4.50 = $44.50

A stock market, stock market, or stock market, is a collection of buyers and sellers of shares (also called stocks) that represent ownership of a company. This includes securities listed on public stock exchanges and stocks that trade only privately. B. Private company shares are sold to investors through equity crowdfunding platforms. Investments are typically made with an investment strategy in mind.

shares can be classified according to the country in which the company is located. For example, Nestlé and Novartis are based in Switzerland and traded on the SIX Swiss Exchange, so they can be considered part of the Swiss stock market. ) on the U.S. Stock Exchange.

Learn more about Stock here: brainly.com/question/1166179

#SPJ4

4 0
1 year ago
Match the career with the education that the job requires.
natita [175]

I am figuring this question out for you! one moment please

Explanation:

8 0
3 years ago
Question 1 which of the follow will happen if you miss a monthly credit card payment?
Stells [14]
What can happen if you miss a monthly credit card payment is that you will be charged a late fee, and you can also lose rewards points.
Hope this helps!
6 0
3 years ago
Other questions:
  • Suppose the multiplier is 5 and the government increases its purchases by $15 billion. Also, suppose the AD curve would shift fr
    13·1 answer
  • Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other genera
    7·1 answer
  • The cover letter should _____. a. be a minimum of two pages in length b. never ask for an interview c. introduce you to an emplo
    8·2 answers
  • Hula Products has reintroduced the hula hoop to the world and faces a growing demand for its product in two distinct markets: th
    14·1 answer
  • "Given current demographic trends, which of the following is NOT a strategy companies would use to gain a competitive advantage
    10·1 answer
  • Confusion Corp is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected re
    7·1 answer
  • The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte
    6·1 answer
  • A bachelors degree in which of the following areas is a good choice for an arts an communication manager?
    10·1 answer
  • Brent has hired an OD consultant to understand why the company's process for paying invoices is so slow. He wants the consultant
    9·1 answer
  • Assessing how customers in the target market evaluate price is the _______ stage in the pricing process.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!