Question: A closed end investment company is currently selling for 10 and you
A closed-end investment company is currently selling for $10 and you purchase 100 shares. During the year, the company distributes $0.75 in dividends. At end of the year, you sell the shares for $12.03. The commission on each transaction is $50. What percentage return do you earn on the investment?
Answer to relevant QuestionsYou buy 100 shares in a mutual fund at its net asset value of $10. The fund charges a load fee of 5.5 percent. During the year, the mutual fund distributes $0.75 in dividends. You redeem the shares for their net asset value ...What is an option? How is an option’s minimum (or intrinsic value) determined? How does arbitrage ensure that the price of an option will not be less than the option’s intrinsic value?Why does the intrinsic value of a call rise with the price of the stock, whereas the intrinsic value of a put declines as the stock’s price rises?The price of a stock is $51. You can buy a six-month call at $50 for $5 or a six-month put at $50 for $2.a) What is the intrinsic value of the call?b) What is the intrinsic value of the put?c) What is the time premium paid ...1. What is the current yield offered by the stock, the bond, and the calls and puts?2. What is the value of the bond in terms of the stock?3. What is the intrinsic value of each option?4. What are the time premiums paid for ...
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