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Finger [1]
3 years ago
11

You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy

is _________.
A. $120
B. $1,000
C. $11,000
D. $12,000
Business
1 answer:
aev [14]3 years ago
6 0

Answer:

$11,000

Explanation:

One IBM March 20 put contract is purchased at a premium of $10

Therefore the maximum profit that will be gained from this strategy can be calculated as follows

= 100(120-10)

= 100(110)

= 11,000

Hence the maximum profit is $11,000

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3 years ago
The Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semi-annually. The bonds mature in
aniked [119]

Answer:

Bond Price = $1213.18605 rounded off to $1213.19

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

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Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035]  + 1000 / (1+0.035)^20

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3 0
3 years ago
The ____ section of the business continuity policy identifies the roles and responsibilities of the key players in the business
devlian [24]
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4 years ago
Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offer
Pepsi [2]

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brand dilution

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According to the information in the question above, it is correct to say that Ferrari may run the risk of diluting the brand, which occurs when a brand has a very strong product, as in the case of Ferrari, which is a brand recognized for its luxury cars , and betting on a licensing strategy can lead to a loss of value because other product lines do not meet the quality and value standards perceived by consumers.

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Edna is a 25-year-old employee who is thinking about opening a retirement account. When she checked, she found that her employer
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