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PtichkaEL [24]
2 years ago
9

You are long 2 contracts of 1-yr call on MSFT with strike (K) of $220, and also long 2 contracts of 1-yr call on MSFT with strik

e (K) of $120. What will be your payoff if MSFT price at expiry (S_T) is $250
Business
1 answer:
Dafna1 [17]2 years ago
7 0

Answer:

The correct answer is $320.

Explanation:

According to the scenario, computation of the given data are as follows:

MSFT price at expiry (S_T) = $250

MSFT with strike (K) Contract 1 = $220

MSFT with strike (K) Contract 2 = $120

So, we can calculate the payoff by using following formula:

Payoff = [(Stock price at expiry (ST) - Strike price of $220)] + [(Stock price at expiry (ST) - Strike price of $120)]

BY putting the value, we get

Payoff =  ($250 - $220) + ($250 - $120)

= $30 + $130

= $160

As there are 2 contracts, then

Total payoff = $160 × 2

= $320

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I think the answer would be false because Pinterest is a site for ideas and inspiration so therefore it would most likely inspire and influence ideas for many people.



6 0
2 years ago
Read 2 more answers
The highest value of total cost was $ 710 comma 000 in June for Horchata​ Beverages, Inc. Its lowest value of total cost was $ 5
marta [7]

Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )

= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

= High total cost - (High production volume × Variable cost per unit)

= $710,000 - (13,000 units × $20)

= $710,000 - $260,000

= $450,000

We simply applied the above formula

6 0
3 years ago
In the 1980s, the U.S. government forced Japanese automakers to limit their exports to the United States. The union representing
never [62]

Answer:

A) save domestic jobs

Explanation:

Domestic jobs: These are the categories of jobs that are available in the national country of the company or within the boundary of the country, which has a preference for the local population and has more responsibility toward national´s resources, however, foreign companies have less responsibility toward national´s resources and their sole motive is to earn profit at a lesser cost.  

In the given case, Japanese company´s export to the U.S have affected the domestic jobs as their motive is to maximize profit, which leads to an argument for protection of domestic job in U.S auto industry, therefore, US government have limited the export of Japanese automaker.

7 0
2 years ago
select all of the following that are companies that paid dividends for 100 consecutive years. a. bp b. stanley works c. corning
nevsk [136]

The companies that paid dividends for 100 consecutive years is: b. Stanley Works c. Corning Glass Works, d. Pullman, Inc.

<h3>What is dividend?</h3>

Dividend can be defined as the money a company or an organization paid yearly to their shareholders and the money the company paid to their shareholders are  from the profit they make or generated.

Shareholders often invest their money in a business  or buy part of a company shares in which they in turn receive profit from the company they invested their money into.

Stanley Works, Corning Glass Works and Pullman, Inc. are the companies that has been paying dividend to their shareholders 100 consecutive years.

Therefore the companies that paid dividends for 100 consecutive years is: b. Stanley Works c. Corning Glass Works, d. Pullman, Inc.

Learn more about dividend here:brainly.com/question/2960815

brainly.com/question/3161471

#SPJ1

7 0
1 year ago
You should try to get the lowest interest rate possible in which situation
Bumek [7]

Answer:

B. you are borrowing money from another person

Explanation:

rest is you giving money to others which if you could youd want higher interest rates for

3 0
2 years ago
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