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sp2606 [1]
2 years ago
11

You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date when IBM stock sel

ls for $123 per share. You will realize a ______ on the investment. $300 profit $300 loss $500 loss $200 profit
Business
1 answer:
ZanzabumX [31]2 years ago
7 0

Answer:

Loss on putting for long time = $300 (Loss )

Explanation:

Given:

Strike price = $120

Stock price = $123

Premium amount = $3 per share

Realize on investment = ?

Computation of realizing on investment:

Given that strike price is lower than the stock price, So premium paid considers as a loss.

Loss on putting for long time = $3 × 100

Loss on putting for long time = $300 (Loss )

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what ammendment isthisSixteen-year old Ryan is the captain of the football team. Before the Friday night game, he and his teamma
ad-work [718]
The fourth amendment constitutes this.
7 0
2 years ago
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over th
melomori [17]

Answer:

a. Inflation

Explanation:

In the context of economics, inflation refers to the increase in the price of goods and services

Moreover,  we also know that

(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)

According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation

Hence, the option a is correct

5 0
2 years ago
You observe that the inflation rate in the United States is 1.5 percent per year and that T-bills currently yield 2.0 percent an
Kamila [148]

Answer:

(a) 7.5%

(b) 8.5%

(c) 9.5%

Explanation:

(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate

Lets foreign country inflation rate = X

X - 1.5 = 8 - 2

X - 1.5 = 6

X = 6 + 1.5

   = 7.5%

(b)

Lets foreign country infllation rate = X

X - 1.5 = 9 - 2

X - 1.5 = 7

X = 7 + 1.5

   = 8.5%

(c)

Lets foreign country inflation rate = X

X - 1.5 = 10 - 2

X - 1.5 = 8

X = 7 + 1.5

   = 9.5%

6 0
2 years ago
Identify whether the market supply curve will shift right or left or will stay the same for the following: a. Firms in an indust
dybincka [34]

Answer:

1. In first example, supply curve moves to the left. Delivery curve moves to the left as supply is heading downward due to variables apart from rate change. In this scenario, the cost of output rises due to the current penalty, and vendors will be able to produce less at the same amount.

2. In second scenario, businesses are prosecuted for contaminating river water, rises in manufacturing prices and vendors will be able to produce worse at the same amount. The output curve then shifts for its left.

3. In third case the output curve will remain the same. That's since the quantities given does not change.

4. In this situation, the harm done by drilling must be cleaned up by the businesses. Hence, production cost rises, and vendors will be willing to provide worse at the provided price. The supply curves then shifts to the left.

3 0
3 years ago
You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
yuradex [85]

Answer:

$16.67

Explanation:

Data provided in the question;

Dividend to be paid next year, D1 = $2

Expected growth rate of dividend, g = 4% = 0.04

Required rate of return on the investment = 16% = 0.16

Now,

Price to be paid for the stock = \frac{D1}{\textup{(r-g)}}

or

Price to be paid for the stock = \frac{\$2}{\textup{(0.16-0.04)}}

or

Price to be paid for the stock = $16.67

8 0
3 years ago
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