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soldier1979 [14.2K]
3 years ago
6

You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are

just not sure which direction. So you buy a long strangle position, with a call and put option, worth $10 and $3 per share, respectively, three months to expiration, and strike prices of 910 (call) and 890 (put). If at expiration AMZN is trading at $865, what is your net profit per share
Business
1 answer:
Brut [27]3 years ago
4 0
The net profit per share would be 600
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4 years ago
Assume you purchased the right to sell 2,300 shares of JCPenney stock in November 2015 at a strike price of $9.00 per share. Sup
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Answer:

Put options give the holder the right to sell the underlying stock to the seller of the put option.

Put options are advantageous when the price in the market falls below the strike price of the option because the buyer will be able to sell at above market value and make a profit.

The asking price for a strike price of $9.00 is listed to be $0.33 and this is the premium paid by the buyer of the Put Option.

<h2>1. Return if stock sells for $8.00</h2>

= Amount received/ Amount spent

= (No. of shares * ((Strike price - Market price) - Premium paid) ) / (No. of share * premium)

= (2,300 shares * (($9.00 - 8.00) - 0.33))/ ( 2,300 * 0.33)

= 2.03

= 203 %

<h2>2. Return if stock sells for $10.00. </h2>

As this is an option, the investor can decide not to sell to the seller. The market price is higher than the strike price so they will not sell to the seller of the option and the return will be;

= (No. of shares * - Premium paid) ) / (No. of share * premium)

= (2,300 shares * - 0.33)/ ( 2,300 * 0.33)

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3 years ago
A ______ is a mission in a game, structuring action for the player. Group of answer choices strategy mechanic dynamic quest
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A Quest is a mission in a game, structuring action for the player.

In video games, a player-controlled character, party, or group of characters may undertake a quest or mission in order to receive a reward. Role-playing and massively multiplayer online games are where you'll typically find quests.  Rewards can come in the form of treasure like in-game currency or equipment, access to places or locations that are at a higher level, a rise in the character's experience so that they can gain new skills and abilities, or any combination of the aforementioned.

There are many different types of missions, including delivery/"fetch" quests, gather quests, kill quests, and escort tasks. Quests, however, might comprise many tasks, such as collecting something and moving it somewhere. In order to create quest chains or series, quests can be linked together. In this way, quests are utilized to give players more context for the world their characters are in. This mechanism is also employed to advance the game's possible storyline or plot.

The term "side quest" is used to describe a variety of quest types. These are side quests that diverge from the main storyline and are not necessary to finish the game.

Learn more about Quests here

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