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fenix001 [56]
2 years ago
6

Vincent purchases a share of the stock and creates a floor by entering into a position in a 6-month option with strike 95. Calcu

late Vincent's total payoff and profit in 6 months if the stock price at that time is 80.
Business
1 answer:
defon2 years ago
3 0

Based on the information given, it should be noted that the total payoff and profit will be -5 and -9.80 respectively.

<h3>How to calculate profit.</h3>

The following are gotten from the complete information:

  • Current stock price = 100
  • Put option strike= 95
  • Put premium = 4.80
  • Stock price at maturity = 80

Therefore, the payoff will be:

= (80 - 100) + (95 - 80)

= -20 + 15

= -5

The profit will be:

= Payoff - Put premium

= -5 - 4.80

= -9.80.

Learn more about profit on:

brainly.com/question/1078746

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Fred is a 45-year-old man. He has an analog television without a satellite connection. His savings are low. Therefore, he does n
Levart [38]

<u>Answer:</u> Option C

<u>Explanation:</u>

The customers are categorized based on their time of adoption to a new product. Innovators are the first people to try the product they are few in the market. Early adopters based on the opinion of the people move to new products in the market. Early majority is a large group of people who move on with new products seeing that is the latest product and that the product which they use may become obsolete.

Laggards are the last group of people who adopt to new products. Laggards are traditional people who would like to go by old ways. Fred is a laggard who has low income and does not wished to switch to new digital technology.

7 0
3 years ago
A theory asserts that consumers will purchase less of a good at higher prices than they will at lower prices.
FrozenT [24]

Answer:

b. It is likely that variables other than the price and quantity of cars demanded were

changing.

Explanation:

The law of demand states that the higher the price of a good, the lower the quantity demanded and the lower the price of a good, the higher the quantity demanded.

If price of cars was increasing and the quantity demanded also was increasing, it indicates other variables were changing. For example, if income was increasing at the time, the demand for cars would increase if cars are normal goods.

I hope my answer helps you

4 0
3 years ago
I would just like the people who run this know that priyanka2003 gave an incorrect answer
BARSIC [14]

Answer:

Bruh thats mean smh

Explanation:

4 0
3 years ago
David Desgro hired Paul Pack to inspect a house that Desgro wanted to buy. Pack had Desgro sign a standard-form contract that in
harkovskaia [24]

Answer:

Desgro’s complaint was filed too late. With this being stated, the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan.

Explanation:

Desgro’s complaint was filed too late. With this being stated, the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan due to the fact that Desgro discovered issues with the plumbing, insulation, heat pump, and floor support after buying the house in which he decided to filled a suit in a Tennessee state court against Pack after Thirteen months which was after the inspection and after signing the standard-form contract that included a twelve-month limit for claims based on the agreement which is why the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan which Desgro failed to comply with.

8 0
4 years ago
Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole a
guapka [62]

Answer: Variable interest rate loan

Explanation:

Given, Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months.

That means the interest rate will change after 18 months.

The term that summarize the situations would be "variable interest rate loan"

  • A variable interest rate loan is defined as a loan in which the interest rate charged on the current balance fluctuates over time as market interest rates changes.
  • It mostly generate more interest.
8 0
3 years ago
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