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
alina1380 [7]
3 years ago
7

You have purchased a put option on Pfizer common stock. The option has an exercise price of $53 and Pfizer’s stock currently tra

des at $55. The option premium is $0.80 per contract. a. What is your net profit on the option if Pfizer’s stock price does not change over the life of the option? b. What is your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option?
Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

A. -0.80

B. 2.20

Explanation:

A. Calculation for your net profit on the option if Pfizer’s stock price does not change over the life of the option

Net profit per share=max(53-55,0)-0.80

Net profit per share=0-0.80

Net profit per share=-0.80

Therefore your net profit on the option if Pfizer’s stock price does not change over the life of the option is -0.80

b. Calculation for your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option

Net profit per share

=max(53-50,0)-0.80

Net profit per share=3-0.80

Net profit per share=2.20

Therefore your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option is 2.20

You might be interested in
What are two examples of when credit, if used responsibly,can be positive
riadik2000 [5.3K]
With credit, you can get a car, or anything that is expensive, if you have bad credit, it would be hard to get these things, with credit, you can also try things for free, people who have bad credit, are not trusted to return the items they try.
3 0
3 years ago
Cory opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Cory i
Daniel [21]

Answer:

The answer is Slander of title

Explanation:

Slander of title occurs when false and malicious written or spoken public statement about an individual's ownership of property that causes harm.

8 0
4 years ago
The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This
arsen [322]

Answer: A. Stability and change

Explanation:

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

A) stability and change.

B) structure and culture.

C) rewards and metrics.

D) stability and metrics

The paralysis that occurs between sticking to existing products and services (stability) and the need for the development of new ones (change) is a direct effect of the innovation paradox which states that the more a firm pays attention to innovation, the less likely it will be to be successful at innovation. In other words, consistency in products and services provokes a tension with the need for new products. While stability enables change in that it supplies security and consistency, reserved knowledge and skills and enables commitment and the provision of resources for a better realization and actualization of change, change enables a firm to set up a new state of stability through variable mechanisms (innovation) This serves to assist an organization in reaching new stable stages with higher efficiency.

8 0
3 years ago
suppose larry's lariats produces 25,000 lassos and sells each for $10. what is the company's total revenue?
zmey [24]

If Larry's Lariats produces 25,000 lassos and sells each for $10, then the company's total revenue is $250,000.

What is total revenue?
Revenue
is the sum of money that a company makes by charging a certain price for its products or services. It is the starting point of an organization's income statement that establishes how much net income it generates after <u>deducting costs, taxes, and interest</u>. It is one of the most crucial line items for a business as a result. There are numerous perspectives on the same number, despite the fact that it may only be one. These different levels of insight are beneficial to investors, analysts, and businesses. Total revenue as well as marginal revenue are two of the most popular types of revenue.

To learn more about total revenue
brainly.com/question/25623677
#SPJ4

3 0
1 year ago
Nadell Corporation reported the following data for the month of AprilInventory Beginning Ending Raw Materials $30,000 $32,000 Wo
jeyben [28]

Answer:

COGS= $181,000

Explanation:

Giving the following information:

Beginning Finished Goods= $39,000

Ending Finished Goods= $53,000

Cost of goods manufactured= 234,000 - 39,000= $195,000

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 39,000 + 195,000 - 53,000

COGS= $181,000

7 0
3 years ago
Other questions:
  • Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property p
    8·1 answer
  • What are the five C's of credit?
    11·1 answer
  • Though they have primarily a(n) __________ presence, online retailers Warby Parker, Bonobos, and Blue Nile have opened physical
    6·1 answer
  • What is the present value of the benefits of owning that car, i.e., saving on rental expenses and selling the car
    12·1 answer
  • _____ is defined as the collection of private, commercially oriented organizations, ranging in size from one-family proprietorsh
    5·1 answer
  • "Vested benefits
    12·1 answer
  • Digg Deep Inc. makes and leases a backhoe to Estes. Due to a defect attributable to Digg Deep's negligence, Estes is injured in
    12·1 answer
  • . The _______ of a forward contract is obligated to ______ delivery and pay for the contracted goods at the forward price; the _
    15·1 answer
  • Daffodil Incorporated manufactures two types of vases, small and large. The following per unit data are available: Small Vase La
    10·1 answer
  • What are three major inventions in the textile industry and what did each one specifically do to increase productivity?.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!