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3 years ago

What would the net value of a long straddle position be if the stock price at expiration is $35?

Business

1 answer:

maks197457 [2]3 years ago

6 0

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

Net value of a long Straddle = ($35-$29)-$2.90-$1.95

Net value of a long Straddle=$6-$2.90-$1.95

Net value of a long Straddle=$1.15

Therefore the net value of a long straddle position will be the amount of $1.15

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Answer: Ownership rights

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On the other hand the bondholders are the creditors of the company as bond is considered as a debt obligation in the company. They are entitled to fixed rate of interest in return of the investment made by them.

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3 years ago

Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cas

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Answer:

The NPV = $1578.185602 rounded off to $1578.19

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Explanation:

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NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost

Where,

CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.

r is the required rate of return

NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +

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NPV = $1578.185602 rounded off to $1578.19

4 0

3 years ago

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Answer:

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4 years ago

At a product's equilibrium price:

just olya [345]

Answer:

The answer is. C) any buyer who is willing and able to pay the price will find a seller for the product.

Explanation:

At a product's equilibrium price, the quantity demanded of the product equals the quantity supplied of the product. So that means that there will always be a supplier willing to sell the product to any consumer who is willing to pay for that product.

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4 years ago

Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.

liraira [26]

Answer:

1. Income statement for 2016.

Sales revenue ($1,661,000 + $15,000) $1,676,000

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<u>2. Statement of retained earnings for the fiscal year ended August 31, 2015.</u>

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3 years ago