[Solved] Investor has written 100 CALL option cont

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 07, 2024

Investor has written 100 CALL option contracts for a delivery of 10 goods each for a price of 45 EUR per asset. Premium on each

Investor has written 100 CALL option contracts for a delivery of 10 goods each for a price of 45 EUR per asset. Premium on each contract is 60 EUR per contract.

What would be investor's total result from option/s investment, if market price at delivery date was 49 EUR per asset?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 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

Managing Cash Flow An Operational Focus

Authors: Rob Reider, Peter B. Heyler

1st Edition

ISBN: 0471228095, 9780471228097

More Books

Students also viewed these Finance questions

Question

★★★★★

Tonya, who lives in California, inherited a $100,000 State of California bond in 2016. Her marginal Federal tax rate is 35%, and her marginal state tax rate is 5%. The California bond pays 3.3%...

Answered: 1 week ago

Question

★★★★★

(b) Find the equation of the regression line for the given data, letting Row 2 represent the x-values and Row 1 the y-values. Sketch a scatter plot of the data and draw the regression line. Part...

Answered: 1 week ago

Question

★★★★★

3 This chapter suggests that corporate headquarters should make the final decision with regard to acquisitions and other major activities. Do you agree with this? What are the difficulties of this...

Answered: 1 week ago

Question

★★★★★

Dry Quick (DQ) is a medium-sized, private manufacturing company located near Timmins, Ontario. DQ has a June 30 year-end. Your firm, Poivre & Sel (P&S), has recently been appointed as auditors forDQ....

Answered: 1 week ago

Question

★★★★★

Investor has written 100 CALL option contracts for a delivery of 10 goods each for a price of 45 EUR per asset. Premium on each contract is 60 EUR per contract. What would be investor's total result...

Answered: 1 week ago

Question

★★★★★

Create a report certifying the correctness of the data set. You must evaluate the existing data set and perform error detection, gap analysis, and anomaly detection. Include any screenshots necessary...

Answered: 1 week ago

Question

★★★★★

On January 1, Year 1, Present Inc. purchased 80 percent of the outstanding voting shares of Sunrise Co. for $3,000,000. On that date, Sunrises shareholders equity consisted of retained earnings of...

Answered: 1 week ago

Question

★★★★★

Birdie Golf Inc. has been in merger talks with Hybrid Golf Company for the past six months. After several rounds of negotiations, the offer under discussion is a cash offer of $550 million for Hybrid...

Answered: 1 week ago

Question

★★★★★

Alberta's Educational Software Outlet sells two or more of its video games as a single package. Managers are keenly interested in individual product profitability figures. Information pertaining to...

Answered: 1 week ago

Question

★★★★★

The following the trial balance was extracted from the nominal ledger of Hexham plc on 31 March 20X8: Debit Sales Inventories at 1 April 20X7 Credit 1.150.000 75,000 Purchases Distribution costs...

Answered: 1 week ago

Question

★★★★★

Part I: On July 10, 2019 Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The SUV is used 100% for business. Determine Ariff's maximum deduction for 2019, assuming Ariffs...

Answered: 1 week ago

Previous Question Next Question