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Greeley [361]
2 years ago
5

What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 p

oints) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling price for the bonds is $80,000.
Business
1 answer:
Klio2033 [76]2 years ago
7 0

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1,500

Break even point = Strike price - Premium

Break even point = $90,000 - $150

Break even point = $88500

Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500

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3 years ago
Maria has a balance of $4,500 on her credit card with a 22% interest rate. How long will it take her balance to double?
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The time required from simple interest on a principal of $4,500.00 at an interest rate of 22% per year is 4.55 years (about 4 years 7 months).

<h3>Simple Interest</h3>

Given Data

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Equation:

t = (1/r)(A/P - 1)

Calculation:

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r = R/100 = 22%/100 = 0.22 per year,

then, solving our equation

t = (1/0.22)((9000/4500) - 1) = 4.55

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Learn more about Simple Interest Here:

brainly.com/question/723406

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I don’t know what are you asking, is this multiple choice. Please explain more
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