You wrote call options on 1,000 shares of Microsoft with a strike of $21 for $8....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You wrote call options on 1,000 shares of Microsoft with a strike of $21 for $8. The current spot price is $93. If the options expire today, your total profits/losses would be ? [note: losses are a negative number] You wrote call options on 1,000 shares of Microsoft with a strike of $21 for $8. The current spot price is $93. If the options expire today, your total profits/losses would be ? [note: losses are a negative number]
Expert Answer:
Answer rating: 100% (QA)
To calculate the total profitslosses from the call options we need to consider ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
Students also viewed these finance questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Your company, Highly Frosted Corn Flakes Inc. has placed an order with Sweetums Sugar Inc. for 2,016,000 pounds of refined sugar to be delivered in 4 months at the market price (spot price) at the...
-
Can HRM specialists rise to the challenge of promoting standardisation while also remaining the guardians of national culture in an organisation?
-
The mass of Pluto was not known until it was discovered to have a moon. Explain how this discovery enabled an estimate of Plutos mass..
-
A chairlift has been stopped in the position shown. Knowing that each chair weighs 300 N and that the skier in chair F weighs 800 N, determine the weight of the skier in chair E 285 14
-
ABC Inc. purchased all of the outstanding common shares of XYZ Inc. for \($100\) million cash. At the time of the acquisition, the fair value of XYZ was \($80\) million. Presented below are the...
-
The following is a list of the items to be included in the preparation of Warrick Company's 2016 statement of cash flow's: a. Net income, $59,200 b. Payment for purchase of building, $98,000 c....
-
Your company currently has $1,000 par, 7.00% coupon bonds with 10 years to maturity and a price of $1,084.23. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to...
-
Dawn is transporting 500 kg of Class 5.1 CAESIUM NITRATE. After skidding off the road to avoid a collision, she discovers about 10 kg of the flammable solid has been released. There were no road...
-
Use the given margin of error, confidence level, and population standard deviation to calculate the minimum sample size required to estimate an unknown population mean . Margin of error: 3 lb,...
-
Two ice skaters of identical mass approach on parallel paths 1.60 [m] apart. Both are moving at 5.40 [m/s]. As they pass they join hands, maintaining their 1.60 [m] separation, and begin rotating...
-
what is your understanding of the 4th amendment? can police officer ask the driver and the occupants of a vehicle to exit of the car? what is your understanding of consent search? references:...
-
A rock on the ground is moved either vertically or horizontally. First it is accelerated horizontally from rest to a speed of 10 m/s. After it is stop to rest it is lifted vertically very slowly...
-
On October 1, 20Y8, Jacinto Suarez and Tricia Fritz form a partnership. Suarez agrees to invest $20,890 in cash and inventory valued at $56,320. Fritz invests certain business assets at valuations...
-
Coma Corporation v. Kansas Department of Labor Who is the plaintiff? The defendant? The appellant? The appellee? What is the history of the case? Possible questions to answer would be: Who won at...
-
Revise the sentences to emphasize the perspective of the audience and the "YOU" VIEW. A. We have prepared the enclosed form that may be used by victims to report identity theft to creditors. B. To...
-
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill...
-
Mutt.Com was founded in 2009 by two graduates of the University of Wisconsin with help from Georgina Sloberg, who had built up an enviable reputation for backing new start-up businesses. Mutt.Com's...
-
Is it possible for an individual to save and invest in a corporation without lending money to it or purchasing additional shares? Explain
-
Pickwick Electronics is a new high-tech company financed entirely by 1 million ordinary shares, all of which are owned by George Pickwick. The firm needs to raise $1 million now for stage 1 and,...
-
Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an \(\$ 8\) contribution margin, and each money clip...
-
Which of the following is least likely to be a major focus when undertaking long-run planning for the information systems audit function? a. Identifying the sequence in which material application...
-
Which of the following is not likely to be covered within an audit charter prepared for an organization's information systems audit function? a. Information systems audit function's place within the...
Study smarter with the SolutionInn App