Assume you purchased the right to sell 2,200 shares of Target stock in March 2019 at...
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Assume you purchased the right to sell 2,200 shares of Target stock in March 2019 at a strike price of $55 per share. Suppose Target stock sells for $51 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $67 per share? Assume your holding period for this investment is exactly three months. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as a percent rounded to 2 decimal places.) Return on investment at $51 Return on investment at $67 % Assume you purchased the right to sell 2,200 shares of Target stock in March 2019 at a strike price of $55 per share. Suppose Target stock sells for $51 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $67 per share? Assume your holding period for this investment is exactly three months. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as a percent rounded to 2 decimal places.) Return on investment at $51 Return on investment at $67 %
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Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
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