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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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4 years ago
Courtney invested in RAD, Inc. stock nine months ago. She is considering tax planning strategies at the end of the year and is p
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The valid reason for selling the stock now is that the -Courtney is concerned that the value of the stock will decline in the near future.

Explanation:

Courtney has  invested in RAD, Inc. stock nine months back .Now she is considering tax planning strategies at the end of the year and is pondering whether or not to sell her investment in the stock.

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3 years ago
Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should
scoundrel [369]

Using the transportation method for solving the optimal shipping of a product from factories to warehouses is e) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.

The transportation method of linear programming is applied to the problems associated with the examination of the efficient transportation routes i.e. how efficaciously the product from extraordinary sources of manufacturing is transported to exceptional locations, consisting of the overall transportation price is minimum.

The transportation model is a special class of linear programming that offers the delivery of a commodity from assets (e.g. factories) to destinations (e.g. warehouses) objective: The objective is to decide the transport agenda that minimizes the full transport price even as gratifying supply and call for limits.

The transportation method is a special case of linear programming issues wherein the goal is to limit the entire price of transporting items from diverse delivery origins to distinct demand destinations.

Disclaimer: The question is incomplete. Please read below to find the missing content.

Question: Using the transportation method for solving the optimal shipping of a product from factories to warehouses, as per text, you should use

a) "=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses

b) "≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses

c) "≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses

d) None of the above

e) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.

Learn  more about transportation methods here brainly.com/question/13926750

#SPJ4

3 0
1 year ago
Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have i
IRINA_888 [86]

With continuous interest,
F=Pe^{rt}
where 
F=future value
P=principal = 1000
r=rate=5%
t=time=3 years

F=Pe^{rt}
=1000e^{0.05*3}
=1000e^{0.15}
=1161.83

Answer: The accumulated amount after three years is $1161.83
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3 years ago
What are marketing information systems?
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Answer:

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3 years ago
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