Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 18, 2024

You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock sells

You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock sells for $123 per share.

What is the overall return on your position?

a. $200 loss

b. $200 profit

c. $500 profit

d. $0, since you do not have to excercise

e. $500 loss

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

Multinational financial management

Authors: Alan c. Shapiro

10th edition

9781118801161, 1118572386, 1118801164, 978-1118572382

More Books

Students also viewed these Finance questions

Question

★★★★★

Find the order of the cyclic subgroup of the given group generated by the indicated element. The subgroup of V generated by c (see Table 5.11) V: 5.11 Table e a b e e a b C C | a al b|c a bc b ec C e...

Answered: 1 week ago

Question

★★★★★

Complete the table: Type of electrolyte (strong, weak or Substance Name nonelectrolyte) NaCl HNO3 Mg(NO3)2 HF NaF NH4Cl Type of acid/base (strong or weak) - Reaction (s) in water (1) e e d e

Answered: 1 week ago

Question

★★★★★

Please help Q2 and C. Then find the shortest distance between D and the plane containing 2. Express the complex number 5-2i + 3i into Cartesian form. 3+4i 3 Solve the equation (1 + i)73 =-1+ 13i_and...

Answered: 1 week ago

Question

★★★★★

Solve this system of equations -3x-y 5 -3x - 4y 83 || y = 1 11

Answered: 1 week ago

Question

★★★★★

As a result of a slowdown in operations, Global Stores is offering employees who have been terminated a severance package of $118,000 cash, another $129,000 to be paid in one year, and an annuity of...

Answered: 1 week ago

Question

★★★★★

Let X(e j ) denote the Fourier transform of the sequence x[n] = (1/2) n u[n]. Let y[n] denote a finite-duration sequence of length 10; i.e., y[n] = 0, n Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Determine the long-run proportion of time that XN(t)+1 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Under Internal Revenue Service (IRS) regulations, federal taxes on gasoline and diesel fuel do not apply to sales of fuels for marine use. Marinas that sell tax-free fuel must obtain a "637...

Answered: 1 week ago

Question

★★★★★

Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well-capitalized." Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme....

Answered: 1 week ago

Question

★★★★★

B myopenmath.com Part 1 of 4 For a binomial experiment with n = 116 and p = 0.24, we will use the normal approximation to the binomial distribution to find P(19 s x s 40). What is the value of np?...

Answered: 1 week ago

Question

★★★★★

Tom negotiates with Marion for the purchase of three brand new cars which he had seen advertised in the local newspaper for 10,000 each. They are both local car dealers Consider the legal position of...

Answered: 1 week ago

Question

★★★★★

Link A rotates about the reference frame N with an amount q along the direction n2, while link B rotates with respect to link A about a direction with an amount -92. Link C rotates with respect to...

Answered: 1 week ago

Question

★★★★★

2/ You plan to produce a winter coat similar to the one produced by Canada Goose. You will use animal fur/goose feathers. Assume that the product will be manufactured and packaged for sale in Canada....

Answered: 1 week ago

Question

★★★★★

Accounting theories play a vital role in guiding research by providing theoretical frameworks and conceptual lenses through which researchers can analyze accounting phenomena. The agency theory, for...

Answered: 1 week ago

Question

★★★★★

Day 4 - Yoga For Your X AMA Online Education X Short Quiz 001 (page 1 x Sy 1/2 (1/2 sin (20)-1/6 sir x Q Integral Calculator | Be x * Upload Documents for X + C D...

Answered: 1 week ago

Question

★★★★★

Adam is 5 1 1 tall and weighs 1 9 0 pounds. He is a single father with two teenage sons. The commute to and from his software development job takes about 9 0 minutes. He likes his coworkers and the...

Answered: 1 week ago

Question

★★★★★

A copper rod of length L =18.0 in is to be twisted by torques T (see figure) until the angle of rotation between the ends of the rod is 3.08. (a) If the allowable shear strain in the copper is 0.0006...

Answered: 1 week ago

Question

★★★★★

10.92 Orange Juice A comparison of the precisions of two machines developed for extracting juice from oranges is to be made using the following data: a. Is there sufficient evidence to indicate that...

Answered: 1 week ago

Question

★★★★★

10.91 Sun or Shade? Karl Niklas and T.G. Owens examined the differences in a particular plant, Plantago Major L., when grown in full sunlight versus shade conditions. In this study, shaded plants...

Answered: 1 week ago

Question

★★★★★

10.93 At Home or at School? Four sets of iden- tical twins (pairs A, B, C, and D) were selected at random from a computer database of identical twins. One child was selected at random from each pair...

Answered: 1 week ago

Previous Question Next Question