Question: 1- Please answer as much as possible I will return with a thumbs up! a- Preferred stock with a face value of $100 has a
1- Please answer as much as possible I will return with a thumbs up!
a- Preferred stock with a face value of $100 has a stated dividend of 2.5%. Indicate the amount of preferred dividends that the company must pay each year.
b- Non-cumulative preferred stock with a face value of $100 million has a stated dividend of 3.1%. Dividends were not paid last year. The company intends to pay dividends of $8 million this year. Calculate the amount of the common dividend.
c- Cumulative preferred stock with a face value of $100 million has a stated dividend of 3.1%. Dividends were not paid last year. The company intends to pay dividends of $8 million this year. Calculate the amount of the common dividend.
d- You believe that soybeans will decrease in price. As a speculator, indicate if you would buy or sell a futures contract.
e- You believe that light sweet crude oil will increase in price. As a speculator, indicate if you would buy or sell a put option or a call option.
f- You are a seller of soybeans and are concerned that it might decrease in price. To protect yourself, indicate if you would you buy a put option or a call option
g- You buy a soybean meal futures contract for 5,000 bushels at $10.21/bushel. Calculate the gain or (loss) if the price increases to $10.27.
h- You buy a call option for 1,000 barrels of light sweet crude oil at $40/barrel. The cost of the option is $0.04/barrel. Calculate the total net gain or (loss) if the price increases to $42/barrel.
i- You buy a put option for 5,000 bushels of soybeans at $10.15/bushel. The cost of the option is $0.53/bushel. Calculate the total net gain or (loss) if the price decreases to $10.10/bushel
j- You sell a put option for 5,000 bushels of soybeans at $10.15/bushel. The cost of the option is $0.53/bushel. Calculate the total net gain or (loss) if the price increases to $10.20/bushel
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