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STALIN [3.7K]
3 years ago
11

An investor implements a collar strategy by purchasing 100 shares of the Tesla stock at a price of $840 per share, selling 100 c

all options on the Tesla stock with a strike price $880 per share, and buying 100 put option on the Tesla with a strike price of $800. The premium of the call option is $35 per share and the premium of the put option is $32. At which stock price at the maturity of the option will the investor break even
Business
1 answer:
ollegr [7]3 years ago
8 0

Answer: $837

Explanation:

The following information can be gotten from the question:

Purchase price = $840 per share

Premium of call option = $35 per share

Premium of put option = $32 per share

From the above, the premium received will be:

= $35 - $32 = $3

Investors break even will then be:

= Purchase price - Premium received

= $840 - $3

= $837

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In the advertising industry, terms such as new advertising, orchestration, and seamless communication were used to describe the
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Competitors who sell similar products using similar marketing plans are known as
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What happens to the matter and energy in fossil fuels when the fuels are burned? Help
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2 years ago
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7 0
2 years ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

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The rate of return of the acre of land is 79.5%.

7 0
2 years ago
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