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3 years ago

Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The

Business

1 answer:

VashaNatasha [74]3 years ago

7 0

Answer:

A) -87.50%

Explanation:

The computation of the return on the investment is shown below:

= (Acquired price by JB Morgon - purchase price per share) ÷ (purchase price per share)

= ($11 per share - $88 per share) ÷ (88 per share)

= - ($77 per share) ÷ (88 per share)

= -87.50%

We simply take the difference of the price and then divide it with the purchase price per share so that the correct percentage can come.

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a trader creates a long butterfly spread from options with strike prices x, y, and z, where x < y < z, and y is exactly mi

Montano1993 [528]

Answer:

$1006

Explanation:

A long butterfly is created by following these steps

Long 1 call option for strike X ( highest premium say C)

Short 2 call option for Strike Y (premium =C-6.67 )

Long 1 call option for strike Z (premium = C-6.67 - 5.03 = C-11.70 where X<Y<Z

Here, Y-X = Z-Y =$11.70

i) whenever the price at maturity goes below the price of x ( no call option is executed )

payoff = 2*(C-6.67) -C-(C-11.7) = - 13.34 + 11.70 = - 1.64

ii) when the price at maturity is between X and Y, only call with strike X is executed

hence payoff = -1.64 +(P-X) where P is the Price at maturity

p - x = y-x = 11.70

hence maximum payoff = - 1.64 + 11.70 = $10.06

iii) When the price is between Y and Z , only call with strike X and Y are executed.

hence, payoff = -1.64 + (P-X) -2* (P-Y) = -1.64 +( 2Y - X - P) and this value decreases as P increases

the minimum payoff occurs when P=Z

So, maximum payoff = -1.64 + (Z-X) - 2*(Z-Y) = -1.64 + 23.4 - 2*11.7 = -$1.64

iv) When the price at maturity is more than Z , all calls are executed

hence, payoff = -1.64 +(P-X) -2* (P-Y) + (P-Z) = -1.64+(2Y-X-Z)

= -1.64+(Y-X -(Z-Y)) = -1.64+(11.7 - 11.70)

= -$1.64

the maximum payoff occurs when P=Y

considering the four options traded the maximum payoff = $10.06

Finally determine the maximum net gain when 400 options are traded

= 10.06 * 400 / 4

= 10.06 * 100 = $1006

3 0

3 years ago

When people conduct business without regard for government controls on price or quantity is called a black market. Please select

Natalija [7]

The statement ‘When people conduct business without regard for government controls on price or quantity is called a black market’ is true. The transactions made in the black market is illegal because it does not follow the set of rules by the government.

7 0

2 years ago

The bulk of costs related to legal expenses come from: a. Photocopying b. Online research through legal subscription services c.

Setler [38]

Answer:

c. Attorney's and paralegal's time

Explanation:

Attorney's and paralegal's time is worth much more than any papper the case requires to print as they get charged above $200 dollar per hour and all the job put into writting Subpoenas, law-suit meeting with the judge, with the other lawyers, negociating and recording testimony among and other legal activities is billed and makes up for the mayority of the case legal cost

4 0

3 years ago

Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $589,

alekssr [168]

Answer:

Challenger Factory

The total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:

= $795,600.

Explanation:

a) Data and Calculations:

Total budgeted factory overhead = $589,600

Total estimated direct labor hours = 376,800

Overhead rate = $589,600/376,800 = $1.56

Direct labor hours per unit of widget = 4 hours

Budgeted production of regular widgets for the period = 75,000 units

Total direct labor hours for the period = 75,000 * 4 = 300,000 hours

Actual production of regular widgets for the period = 127,500

Total direct labor hours for regular widgets = 510,000 (127,500 *4)

Total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:

= 510,000 * $1.56 = $795,600

3 0

2 years ago

Select the correct answer from each drop-down menu. which sector dominates developed economies such as the united states? in dev

professor190 [17]

Legal firms and hospitals are the that dominates the economy is the consumer service sector.

<h3>Which sector dominates developed economies such as the United States?</h3>

In the Unites State which is a developed country is highly dominated by the service sector, in US about 80% of the country's output. The US service sectors companies are technology, financial services, healthcare and retail, that dominated maximum economy.

Thus, Legal firms and hospitals

For more details about sector dominates developed economies, click here:

brainly.com/question/26634414

#SPJ1

4 0

1 year ago