Q) A put option on MaysCo stock is available with an exercise price of $110 and a premium of $2 per share. What is the net gain (per share) on the option if the price of MaysCo stock if the price of the stock falls to $104? Show your work. what is the gain per option as a percentage of the premium
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Q) A put option on MaysCo stock is available with an exercise price of $110 and a premium of $2 per share. What is the net gain (per share) on the option if the price of MaysCo stock if the price of the stock falls to $104? Show your work.
what is the gain per option as a percentage of the premium?
i only need second answer plz don't waste my question by answering first one... correct answer will be rated
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- MCQ question Solve properly 25) Assume you pay a premium of 37 cents per bushel for a corn call with a strike price of $3.00. At the time, the futures price is $3.20. What is the option’s time value? 0 37 cents 20 cents 17 centsAn oil company is considering drilling in the Gulf at a current cost of $400,000 with an expected profit of $500,000 in three years. The current market rate of interest is 10 percent. Should the company make the investment? Multiple Choice No, the present value of the profit is less than the present value of the cost.. No, the future value of the profit is less than the present value of the cost. Yes, the present value of the profit is greater than the present value of the cost.. Yes, the future value of the profit is greater than the present value of the cost.Sam, after taking a $200 loan from the bank to finance an investment that pays $1000 50% of the time and $0 50% of the time at a 100% interest, discovers another riskier investment that pays out $5,000 but only 10% of the time, while the other 90% of the time it pays zero. Would the he want to switch to the riskier investment? Question 4 options: Yes because his return has increased No because his liability to the bank has increased No because his return has decreased None of the above
- c.) What is the expected value for profit? Fill out the table below to help you calculate the value The expected value for profit is 23 x f(x) x⋅f(x) -100 0.05 -50 0.15 0 0.30 50 0.35 100 0.12 200 0.03 E(x)=-2 Consider the two investments listed below with possible outcomes and probabilities: INVESTMENT (in $1000) SAFE RISKY INVESTMENT AMOUNTⓇ 40+ 40+ GOOD SCENARIO OUTCOME 45+ 80+ AVERAGE+ SCENARIO PROB OUTCOME 0.40* 0.40€ 42+ 45+ BAD+ SCENARIO PROB OUTCOME PROB 0.20 35+ 0.20 10+ 0.40€ 0.40+ b) a) Suppose I have utility function U(*) = (x)2. What is the expected utility from each investment? Which investment will I choose, if any? Show and explain your work and provide the intuition. c) What is the value of the risk premium for the SAFE investment? Show and explain your work and provide the intuition. d) What is the value of the risk premium for the RISKY investment? Show and explain your work and provide the intuition.< +Question A Call(50) = 9; Call(55) = 7; Put(50) = 7; Put(55) = 5. All options are on the same stock and have the same expiration time. Which strategy(s) yields arbitrage profit? A. Buy Call(50), sell Call(55) B. Sell Call(50), buy Call(55) C. Buy Put(50), sell Put(55) D. Sell Put(50), buy Put(55) E. Both A and C F. Both A and D G. Both B and C H. Both B and D . Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.
- a-What are the five factors that affect an option's price? b-Discuss the impact of time to expiration on the option price by explaining to the graph below. Call pre Put price 10 OR69 12 15 18 21 24 27 30 3 24s 4 SI 54 57 6e Time te ration monthPlease do not give solution in image formate thanku. 3. Given the cash flow of the company is $3,000,000, show the formula using nested IF to formulate the following condition: a. if the cash flow is at least 1 million dollars, you will buy this company, if not, then if the cash flow is at least $285,000, then you will consider buying this company, if these two conditions all failed, then you will decide not to buy this company. (Use the excel spreadsheet to test your result first before copying them to the space below of the formula)Question: What are the equations for measuring return and risk?
- An investment club has set a goal of earning 15% on the money it invests in stocks. The members are considering purchasing three possible stocks, with their cost per share (in dollars) and their projected growth per share (in dollars) summarized in the following table. (Let x = computer shares, y = utility shares, and z = retail shares.) Stocks Computer (x) Utility (y) Retail (z) Cost/share 30 44 26 Growth/share 6.00 6.00 2.40 (a) If they have $392,000 to invest, how many shares of each stock should they buy to meet their goal? (If there are infinitely many solutions, express your answers in terms of z as in Example 3.) (x, y, z) = ? (b) If they buy 700 shares of retail stock, how many shares of the other stocks should they buy? computer ? shares utility ? shares What if they buy 1400 shares of retail stock? computer ? shares utility ? shares (c) What is the minimum number of shares of computer stock they should buy?? sharesWhat is the…1. ABC Co. has a preferred stock with an annual dividend of $8.5 per share. If the required return on this preferred stock is 17.5%, at what price should the stock sell? * a) $106 b) $105 c) $103 O d) $113.33 O e) None of the aboveBig Trucking Company has purchased a $100,000 dump truck that has a useful life of 8 years. After the first year of use, the market value of the dump truck falls to $70,000. If the highest one year return available is 10 percent, what is the one year return from selling the dump truck? A.$60,000 B.$70,000 C.$10,000 D.$7,000