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
Tasya [4]
3 years ago
14

You sold five put contracts on CTB stock at an option price per share of $1.90. The options have an exercise price of $45 per sh

are. The options were exercised today when the market price was $39 a share. What is your net profit or loss on this investment
Business
1 answer:
IRINA_888 [86]3 years ago
6 0

Answer:

-$2,050

Explanation:

Given that,

Number of options sold = 5

Option price per share = $1.90

Exercise price = $45 per share

Market price = $39 per share

As the exercise price is greater than the stock market price, so the purchaser of the put option will exercise the option,

Lot size = 100 shares

Therefore, the loss on this investment is calculated as follows:

= -{[(Exercise price - Market price) × Number of options sold] - (Option price × Number of options sold)} × Lot size

= -{[($45 - $39) × 5] - ($1.90 × 5)} × 100

= -$2,050

You might be interested in
Ms. Marilynn Castillo is a marketing manager at Gordon Corp. She debates whether or not to conduct a marketing research study be
Ipatiy [6.2K]

Answer:

The correct answer is letter "B": cost-benefit assessment.

Explanation:

Cost-benefit assessment implies analyzing what the costs and benefits of engaging in business are. The approach aims to minimize losses and maximize benefits. It does not necessarily imply there are not going to be losses during the business cycle but could reduce them as much as possible.

3 0
3 years ago
An organization that collects and distributes money to candidates is known as a(n)_______.
MA_775_DIABLO [31]

Answer:

political action committee

Explanation:

A political action committee is an organization set up by a political party to gather funds through the contribution and donation from members of the party. The funds collected by the political action committee are used to support the party candidate or campaign against the opposition party candidate. The political action committee is not obligated by law to disclose the identities of donors.

5 0
3 years ago
Long-term objectives are useful because they Multiple choice question. can be accurately measured, whereas short-term objectives
belka [17]

Answer:

Option B

Explanation:

Option B:

Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.

6 0
2 years ago
Potomac Industries is a manufacturer of high-definition televisions. The industry has gone through a period of rapid growth and
scZoUnD [109]

Answer:

Option B. Implement process innovations that lower per unit costs

Explanation:

The reason is that the controlling cost will give cost advantage over the competitors and will let the company to compete at a better platform making greater number of sales and driving maximum sales which will also give economies of scale. Economies of scale is the benefits of additional costs savings that comes with the additional manufacturing of the product which means that greater the manufacturing the greater would be the savings of costs. So economies of scales give competitive advantage over the rivals so the correct option is B.

8 0
3 years ago
Read 2 more answers
You start work at 7:30 am and take a half an hour unpaid lunch at 11:30 AM and then start work at 5:30 PM. How much hours will y
scoray [572]

The number of hours worked for which I will the receive the payment is 7 hours.

<u></u>

<u>Explanation:</u>

Considering the working hour is from 7:30 am to 8:30 pm

Initial work hours = 7:30 to 11:30am

number of hours = 4

If I start working at 5:30 pm and work till 8:30 pm then the number of hours would be 3

Thus,

total number of hours worked = 4 + 3

                                                  = 7

Therefore, number of hours worked for which I will the receive the payment is 7 hours.

6 0
2 years ago
Other questions:
  • Alberto is the senior manager at a clothing producer, and he decides to push a new product particularly hard, understanding that
    5·1 answer
  • Suzanne, a sales representative at medex, a pharmaceutical firm, was being sexually harassed by her manager, phil. after suzanne
    12·1 answer
  • A variable that likely is incorporated in the error term is A. the variable cost of production. B. the fixed cost of production.
    7·1 answer
  • The Future Lab Program, which is a part of Sony's investment in R&amp;D, embraces an approach to technological R&amp;D that emph
    14·1 answer
  • It is common practice among currency traders worldwide to both price and trade currencies against the U.S. dollar. Consider a cu
    14·1 answer
  • The social and economic goals of __________ include private ownership of land and business.
    11·1 answer
  • Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re
    11·1 answer
  • . At December 31, 2015, Xerox reports $349 million of 8% Series A Convertible Preferred stock. What is the dollar amount of divi
    10·1 answer
  • XYZ, Inc. has a beta of 1.06. The risk-free rate is 6 percent and the expected return of the market is 15.25 percent. What is XY
    9·1 answer
  • In insurance terminology, equipment such as tractors, bulldozers, road graders, front-end loaders, and forklifts designed primar
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!