Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.30 sometime during the next 5 months. For $ 412.33 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 412.33 and Du Pont's stock price actually changed to $ 82.09 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ?

A loss of $1021.33

Explanation:

The first step is to calculate the net profit.

The profit = The current stock price - drop in stock price

$76- $82.09 = -6.09

Profit / loss = -6.09

The second step is to calculate the total gross profit

The total gross profit/loss =  Outstanding shares * Profit

100 shares * - 6.09 = -$609

The total gross profit = -$609

Therefore the Net profit or loss

Net profit=Total gross profit -Contract price

= -609- 412.33

= -1021.33 (loss)

A the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be a loss -$1021.33

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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explanation:

we're are the selections to pick from?