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
AURORKA [14]
3 years ago
8

Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni

ts in a GBP options contract. At the time of the option expiration date, the spot price for GBP was $1.885. What was the net profit/loss on this option to the investor?
a. $203.125
b. $671.8750
c. $468.75
d. $1,140.625
Business
1 answer:
vladimir1956 [14]3 years ago
8 0

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

You might be interested in
Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endo
Andrews [41]

Answer:

B. being unwilling to sell a vase for a price that is greater than the price you would be willing to pay to buy the vase if you​ didn't already own it

Explanation:

7 0
3 years ago
Designing a new backpack at an outdoor sports equipment company is an example of a: Select one: a. Product-level activity. b. Fa
marissa [1.9K]

Answer:

The answer is option A. Designing a new backpack at an outdoor sports equipment company is an example of Product-level activity.

Explanation:

A product-level activity is carried out in support of a specific product or activity.

These actions are taken irrespective of the amount of production or service volume associated with a product.

Product level activities relate to specific products and must be carried out regardless of how many batches or units of product are produced or sold.

For example, designing a new backpack at an outdoor sports equipment company is product specific and could involve the production of units or batches to be sold.

6 0
3 years ago
Why might a business owner prefer to raise capital through a loan rather than through selling shares to an investor ?
MArishka [77]

Answer:

Shareholders can have control over business decisions. With a loan, all the owner owes is principle and interest

7 0
3 years ago
How old can you be to get your license?<br>A) 16<br>B) 18<br>C) 19 ​
jekas [21]

Answer: 18

Explanation: Legal age to drive

7 0
3 years ago
Read 2 more answers
Kubin company’s relevant range of production is 20,000 to 23,000 units. when it produces and sells 21,500 units, its average cos
Afina-wow [57]
<span>The cost per unit is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced. Hypothetically lets say variable costs for Kubin company's production is $50,000 and their fixed costs are $25,000. $50,000 variable costs + $25,000 fixed costs / 21,500 units = $3.49/unit.</span>
6 0
3 years ago
Other questions:
  • The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035. The bank statement indicated a balance
    6·1 answer
  • A broker-dealer tells a customer that it is willing to buy a stock at $20 and is willing to sell that same stock at $21. this is
    13·1 answer
  • Is designed to protect you from injuries to your head face ears eyes hands feet
    7·1 answer
  • Free market economies distribute goods and services than command economies.
    11·1 answer
  • Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can
    7·1 answer
  • Which of the following is a nominal variable? - Education - Age - Employment status - One needs to know the attributes to determ
    5·1 answer
  • Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this unde
    6·1 answer
  • Nolan is applying for a promotion within his company. The formal statement about the job says that he must have a four-year coll
    10·1 answer
  • In the five C's, how is cost different from price?
    8·2 answers
  • Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!