Mr. X established the following spread on the Delta Corporation's stock!(1) Purchased one 3-month call option with a premium of Rs.30 and an exerciseprice of Rs.550.(ii) Purchased one 3-month put option with a premium of Rs.5 and an exerciseprice of Rs.450.Delta Corporation's stock is currently selling at Rs.500. Determine profit or loss,if the price of Delta Corporation's :(i) Remains at Rs.500 after 3 months.(ii) Falls at Rs.350 after 3 months.(iii) Rises to Rs.600.Assume the size option is 100 shares of Delta Corporation.7500

A call option is a contract between a buyer and a seller to purchase a certain stock at a certain…

Mr. X established the following spread on the Delta Corporati (1) Purchased one 3-month call option with a premium of Rs.30 and an exercis price of Rs.550. (ii) Purchased one 3-month put option with a premium of Rs.5 and an exercis price of Rs.450. Delta Corporation's stock is currently selling at Rs.500. Determine profit or los if the price of Delta Corporation's : (i) Remains at Rs.500 after 3 months. (ii) Falls at Rs.350 after 3 months. (iii) Rises to Rs.600. Assume the size option is 100 shares of Delta Corporation. 500

Mr. X established the following spread on the Delta Corporati (1) Purchased one 3-month call option with a premium of Rs.30 and an exercis price of Rs.550. (ii) Purchased one 3-month put option with a premium of Rs.5 and an exercis price of Rs.450. Delta Corporation's stock is currently selling at Rs.500. Determine profit or los if the price of Delta Corporation's : (i) Remains at Rs.500 after 3 months. (ii) Falls at Rs.350 after 3 months. (iii) Rises to Rs.600. Assume the size option is 100 shares of Delta Corporation. 500

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Given the image: If an investor purchased 150 shares of Sunoco stock at $83.43 and the brokers commision was 2.5%, what is the amount of the commision and the total cost of the purchase?
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Suppose that an investor purchases the common stock at the current market price of $58/share and simultaneously sells for $12 a call to buy the shares at the strike price of $50. At the expiration of the call, price of stock is $77. What is the net profit on the position for this investor? (Round your answer the nearest dollar, do not enter with the dollar sign)
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1) Lisa has a margin account and deposits $2500,000 into it. Assume that the prevailing margin requirement is 50%, interest and commissions are ignored and and XYZ Corp. is selling for $44 a share. a.) How many shares can Lisa purchase using the maximum allowable margin? b.) What is Lisa's profit or loss is XYZ Corp.'s stock i.) Rises to $59 and Lisa sells the stock? ii.) Falls to $32 a share and sells the stock? c.) If the maintenance margin is 30%, what price can the stock fall to before Lisa receives a margin call? 1262 20
If an investor buys shares in a closed-end investment company for $46 and the net asset value is $53, what is the discount? If the company distributes $1, the net asset value rises to $58, and the investor sells the shares for a premium of 5 percent over the net asset value, what is the percentage earned on the investment?
In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively. You sell 100 shares and pay a flat fee of $5 to your broker. Your selling price and the total transaction cost are: A. $31.06, $13.5 B. $31.33, $18.5 C. $31.33, $13.5 D. $31.06, $18.5
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I bought AEO stock on 8/14/2018 for $28.02 and then collected $0.1375 dividend on 10/11/2018 and then sold my stock on 11/30/2018 for $20.93. What has been my annualized return from this transaction? ( Please use IRR) A)-54.24% B)-61.96% C)-84.75% D)-78.45% Please answer fast I give you upvote.
You have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor C bought 100 shares of XYZ on 2-Mar-2021, bought another 100 shares on 4-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the dollar-weighted average rate of return for the investor? A. 20% B. 0% C. 15% D. 25%
Suppose you owned 1000 shares of stocks in ABC Corporation. You purchased the shares at a price of $102.41 per share and sold them at $160.38. Question 11 options: Calculate the broker's commission if your broker charges 3.6% of the total sale price, Ignoring dividends, determine your profit on the sale of all the purchased stock? 1. $160, 380.00 2. $3, 686.76 3. $57, 970.00 4. $5, 773.68

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