Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Financial Management Expert

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $41. Calls Puts Strike Option Expiration Price Vol. Last Vol. Last Macrosoft Feb 43 99 1.63 54 2.63 Mar 43 75 1.87 36 3.04 May 43 36 2.15 25 3.46 Aug 43 17 2.36 17 3.50 a. Suppose you buy 24 contracts of the February 43 call option. How much will you pay, ignoring commissions? Cost $ 39.12 Suppose you buy 24 contracts of the February 43 call option. Macrosoft stock is selling for $44 per share on the expiration date. b-1 How much is your options investment worth? Payoff $ b-2 What if the terminal stock price is $43? Payoff $ Suppose you buy 24 contracts of the August 43 put option. c-1 What is your maximum gain? Maximum gain $ c-2 On the expiration date, Macrosoft is selling for $37 per share. How much is your options investment worth? Position value $ c-3 On the expiration date, Macrosoft is selling for $37 per share. What is your net gain? Net gain $ Suppose you sell 24 of the August 43 put contracts. d-1 What is your net gain or loss if Macrosoft is selling for $38 at expiration? (Enter your answer as a positive value.) $ d-2 What is your net gain or loss if Macrosoft is selling For $45 at expiration? (Enter your answer as a positive value.) $ d-3 What is the break-even stock price? (Round your answer to 2 decimal places, (e.g., 32.16).) Break-even $

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92777687

Have any Question?


Related Questions in Financial Management

Question - your chief financial officer cfo was unable to

Question - Your chief financial officer (CFO) was unable to attend the recent monthly chamber of commerce meeting. You learned from some other local CFOs that changing exchange rates had dramatically affected their firms ...

Part a-budgeting amp financial analysisassume the following

Part A-Budgeting & Financial Analysis Assume the following data for Spring Break Corp: Statement of Income:                                               Balance Sheet: 2017                                                ...

Assessment - projectpart a- asset register1 develop a

ASSESSMENT - PROJECT Part A- Asset Register 1. Develop a physical asset register for the Acumen kitchen and restaurant which includes: buildings, computer system, equipment fixtures, fittings and furniture in the kitchen ...

This assignment investigates the financial needs of your

This assignment investigates the financial needs of your business venture from Assignment. Write a three to four (3-4) page paper in which you: Outline the financial start-up needs for this business. Consider such items ...

This week you are to research the issue of healthcare

This Week, you are to research the issue of healthcare charging and develop a charging policy for a healthcare institution that reflects current market trends. You should consider various methods of establishing this pol ...

Stress affects our food choices metabolism nutritional

Stress affects our food choices, metabolism, nutritional status, and overall health in many ways. For this discussion forum, we will be talking about how we cope with stress and how to optimize our coping strategies to b ...

Assignmentnow that you have gained an understanding of red

Assignment Now that you have gained an understanding of Red Carpet, Leroy has asked you to join in on a preliminary meeting with the VP of HR and other members of the organization to discuss change. The meeting was very ...

Introductionlast week you determined the root causes of the

Introduction Last week, you determined the root cause(s) of the problem you are trying to resolve for your final paper. As a reminder, the decision you are working on is the one that you selected in week two. This week, ...

Discussionbull profits and risks of off-balance-sheet

Discussion • Profits and Risks of Off-Balance-Sheet Activities • The difference between spot and forward exchange rates. What role do currency swaps play? • The Federal Open Market Committee • Multiple Deposit Creation a ...

Situationthe law affects the business environment and every

Situation The law affects the business environment and every single business and organization. These laws and regulations often come to light in current events as businesses find themselves represented in the press, eith ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As