Business, 06.08.2021 17:00 theoriginalstal9245

A three-month call option is the right to buy a stock at $20. Currently the stock is selling for $22 and the call is selling for five dollars. You are considering buying 100 shares of the stock ($2200) or one call option ($500). A) the price of the stock rises to $29 within three months what would be the profits or losses on each position? What would be the percentage gains or losses?
B) if the price of the stock declines to $18 within three months, what would be the profits or losses on each position? What would be the percentage gains or losses?
C) if the price of the stock remains stable at $22, what would be the percentage gains or losses at the expiration of the call option?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 16:50

The cost of labor is significantly lower in many countries than in the united states. if you move manufacturing to a facility to a country labeled as part of the axis of evil and a threat to world peace you will increase the net income of your client by $10 million per the facility is located in a country which limits personal freedom and engages in state sponsored terrorism. imagine you are a marketing consultant. (a) what would you tell the executives to do? (b) what are the alternatives? what are your recommendations? why do you recommend this course of action?

Answers: 1

Answer

Business, 22.06.2019 19:30

Dollar shave club is an ecommerce start-up that delivers razors to its subscribers by mail. by doing this, dollar shave club is using a(n) to disrupt an existing market.a. innovation ecosystem b. architectural innovation c. business model innovation d. incremental innovation

Answers: 2

Answer

Business, 22.06.2019 20:00

During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above

Answers: 3

Answer

Business, 22.06.2019 22:40

Southeastern oklahoma state university's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. however, in an effort to limit class sizes to a "reasonable" level (under 200 generally), southeastern's dean, holly lutze, placed a ceiling on enrollment of 1,600 new students. although there was ample demand for business courses last semester, conflicting schedules allowed only 1,440 new students to take business courses.the utilization rate for southeastern=%the efficiency rate for southeastern=%

Answers: 3

Answer

You know the right answer?

A three-month call option is the right to buy a stock at $20. Currently the stock is selling for $22...

Questions