Ask Question, Ask an Expert


Ask Basic Finance Expert

Suppose that you initiated a short position in stock X, selling when the market price was $75 per share. The stock price has fallen to $69 per share.

a. find out your current profit, and your maximum possible gain and loss

b. Now assume that you buy a put option to protect your position. Your put has a strike price of $69 per share, maturity of 6 months, and the per share premium is $2.95. What is your maximum possible gain and loss with the protective put?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944653

Have any Question? 

Related Questions in Basic Finance

Wy are voids filled with lightweight infilling

Why are voids filled with lightweight infilling material in raft foundation of pumping stations?

The secondary market for t-bills is active and the

The secondary market for T-bills is active, and the secondary market for federal agency securities is limited. How does this affect the primary market for each security? Why are well- developed secondary markets importan ...

Question 1 what were the responsibilities of the mortgage

Question 1: What were the responsibilities of the mortgage brokers to borrowers? To lenders? To investors? How well did they fulfill their responsibilities? Why? Question 2: Did some subprime lenders behave unethically? ...

Discussion performance measurement managing finance-both

Discussion Performance Measurement Managing Finance- Both the Genesis Energy and Sensible Essentials teams believe that the client engagement was very successful. All the critical learning tools were fully explored. Howe ...

Rockwell jewelers management announced that the company had

Rockwell Jewelers management announced that the company had net earnings of $3,000,000 for this year. The company has 1,500,000 shares outstanding, and the year-end stock price is $40.00. What are Rockwell's earnings per ...

Explore the website of internal revenue service irsgov and

Explore the website of Internal Revenue Service (IRS.GOV) and write 200 words minimum as to what info you found on the website. Explore the following tabs on the website: Filing, Payments, Refunds, Credits and Deductions ...

Define commercial paper negotiable certificates of deposit

Define commercial paper, negotiable certificates of deposit, repurchase agreements, bankers' acceptances, federal funds, and Eurodollars. In what ways are they similar, and in what ways are they different?

Assignment- tvm 2 - tth classto complete your degree and

Assignment- TVM 2 - T/Th Class To complete your degree and then go through graduate school, you will need $50,000 at end of each of the next7 years. Your Aunt offered to put you through school, and she will deposit in a ...

Individual or component costs of capital your firm is

(Individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm fo ...

Do the following problems1calculate the following cross

Do the following problems 1. Calculate the following cross exchange rates: a. If the exchange rates are 200 yen per dollar and 50 US cents per Swiss Franc, what is the exchange rate of yen per franc? b. The dollar is tra ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate