The maximum possible profit = $7068
For given question,
One Microsoft July $72 put contract for a premium of $1.32
The payoff arise from put option is max (K - S, 0) - P
Now it would be maximum at S = 0
And, the maximum payoff is
K - 0 - P
= K - P
= 72 - 1.32
= $70.68
We assume that for each and every contract the number of shares is 100
So, the maximum profit gained from this strategy is
= $70.68 × 100 shares
= $7068
The maximum profit that will be gained from this strategy is $7068
Therefore, the maximum possible profit = $7068
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Answer:
49.5 mi
Step-by-step explanation:
Area of a triangle is A = (height) X (base) / 2
So if you plug in the numbers you get:
806.9 = (32.6) X (base) / 2
1613.8 = (32.6) X (base)
1613.8 / 32.6 = base
base = 49.5 mi
All you gotta do is pick a random point on the x-axis, lets say, x=2 in this case, and plug it into the equation.
If x=2, y = (1/2)2 - 3 = 2 - 3 = -1
When x = 2, y = -1
Now pick another point, x = 1
x = 1, y = (1/2)1 - 3 = 0.5 - 3 = - 2.5
When x = 1, y = - 2.5
Draw a cross on those 2 points, on the 2d plane
(1, -2.5) and (2, -1)
and draw a line between them, and make the line continue past the points, having no boundaries but the paper you hold, keeping it straight the entire time. With not turns.
If you want to draw out a table, make it have 2 rows, and 6 columns.
Write x in the first column of the first row, and write y in the first column of the second row.
Now, write down a different, random x value, in each column in the first row.
In the second row, in each column, write the y value, that corresponds to the x value given above each individual column, based on the equation
y = 1/2x - 3.
Answer:
P(0) = 2000
P(10) = 2414
Step-by-step explanation:
The price for today is given by P(t) when t=0. Put 0 where t is, and do the arithmetic.
P(0) = 2000·1.019^0 = 2000
The price in 10 years is given by P(t) when t=10. Put 10 where t is, and do the arithmetic.
P(10) = 2000·1.019^10 ≈ 2000·1.207096 ≈ 2414
