FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Apple currently trades at $585. You can buy a 3-month put option on Apple stock with a strike price of $580 for $34.7. What is

Apple currently trades at $585. You can buy a 3-month put option on Apple stock with a strike price of $580 for $34.7. What is your total profit with a stock price of $571 in 3 months? Each option allows you to sell 100 shares of stock. A. 900 B. -3,470 C. -2,070 D. -2,570

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Managerial Finance

Principles of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix

Arab World Edition

1408271583, 978-1408271582

More Books

Students also viewed these Finance questions

Question

★★★★★
Show how you would accomplish the following transformations. (a) (b) (c) 1-methylcycloheptanol 2-methylcycloheptanol

Answered: 1 week ago

Question

★★★★★
If 1 + 1 = 2 or 1 + 1 = 3 , then 2 + 2 = 3 or 2 + 2 = 4 . True False

Answered: 1 week ago

Question

★★★★★
LO 13-2 Compare and contrast the different modes that firms use to enter foreign markets.

Answered: 1 week ago

Question

★★★★★
Presented below are long-term liability items for Lind Company at December 31, 2014. Prepare the long-term liabilities section of the balance sheet for Lind Company. Bonds payable, due 2016...

Answered: 1 week ago

Question

★★★★★
Apple currently trades at $585. You can buy a 3-month put option on Apple stock with a strike price of $580 for $34.7. What is your total profit with a stock price of $571 in 3 months? Each option...

Answered: 1 week ago

Question

★★★★★
Payroll taxes are 6.2%, and Medicare taxes are 2.9%. Your employer owes you $3,825. (a) Approximately how much will you receive after these deductions? (b) How much will your work cost your employer?

Answered: 1 week ago

Question

★★★★★
5. Consider the problem of moving a knight on a 3x4 board, with start and goal states labelled as S A S. H D, K A h C B. GF F D, F and G. The search space can be translated into the following graph....

Answered: 1 week ago

Question

★★★★★
A client with a deep vein thrombosis (DVT) is prescribed a heparin drip. The loading dose of 80 units/kg to a maximum of 5000 units is prescribed. The client weighs 190 lbs. Available: heparin 5000...

Answered: 1 week ago

Question

★★★★★
A toy car is placed on a ramp, which is inclined at an unknown angle with respect to the horizontal. Starting from rest, the car rolls freely down the ramp. After time t, the car has traveled a...

Answered: 1 week ago

Question

★★★★★
You plan to migrate an on-premises Apache Spark deployment to a managed Apache Spark service in Azure. To which Azure service can you migrate the on-premises deployment?

Answered: 1 week ago

Question

★★★★★
Presented below are long-term liability items for Sunland Company at December 31, 2022. Bonds payable, due 2024 $675,000 Lease liability 70,000 Notes payable, due 2027 80,000 Discount on bonds...

Answered: 1 week ago

Previous Question Next Question