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nadezda [96]
3 years ago
15

You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The opti

on expires today when the value of ABC stock is $34.60. Ignoring trading costs and taxes, what is the net profit or loss on this investment
Business
1 answer:
snow_lady [41]3 years ago
4 0

Answer:

$270

Explanation:

Calculation to determine the net profit or loss on this investment

Using this formula

Total profit/Loss =Stock value -Strike price-Option quoted)×100×Call option

Let plug in the formula

Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6

Total profit =$0.45×100×6

Total profit= $270

Therefore the net profit on this investment is $270

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As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of ________ advertisi
Nutka1998 [239]

Answer:

The answer is reminder

Explanation:

Reminder advertising is used by a known brand or firm to remind or to make them not to forget a product. Sometimes, additional benefits can be added to an already known product. Reminder advertising is essential here.

Reminder advertising is used to elongate the life-cycle of a product. Products in their maturity stage should be given additional benefits to be able to make them competitive.

4 0
3 years ago
Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where
WITCHER [35]

Answer:

Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.

Explanation:

yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%

if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%

we can use the approximate yield to maturity formula to find the market price of Chris's bond:

2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]

0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]

0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV

1.2 + 0.012MV = 8 - 0.05MV

0.062MV = 6.8

MV = 6.8 / 0.062 = 109.68

8 0
3 years ago
Describe the benefits of branding? ​
Kobotan [32]

Answer:

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3 years ago
All of the following are alternative forms of institutional advertisements EXCEPT:
forsale [732]

Answer: B. Public Service

Explanation:

There are 4 alternative forms of institutional advertisements being;

  1. Competitive - These types of adverts aim to show that the product presented is better than that of the competitor by showcasing its benefits and features.
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  3. Pioneering - This is for products that are just starting out and need to be introduced to inform the market of its existence.
  4. Advocacy - These focus on telling the audience the position a company has on an issue.

These are the four alternative forms of institutional advertisements and Public Service is not one of them.

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3 years ago
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Rom4ik [11]
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