subject
Business, 28.06.2019 17:40 yasmincx

Suppose you think fedex stock is going to appreciate substantially in value in the next 6 months. say the stock's current price, s0, is $100, and the call option expiring in 6 months has an exercise price, x, of $100 and is selling at a price, c, of $10. with $10,000 to invest, you are considering three alternatives. a. invest all $10,000 in the stock, buying 100 shares. b. invest all $10,000 in 1,000 options (10 contracts). c. buy 100 options (one contract) for $1,000, and invest the remaining $9,000 in a money market fund paying 4% in interest over 6 months (8% per year).

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 07:30
Why has the free enterprise system been modified to include some government intervention?
Answers: 1
question
Business, 22.06.2019 11:10
How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? round to the nearest cent. do not include a dollar sign in your answer. (i.e. if your answer is $432.51, then type 432.51 without $ sign)
Answers: 1
question
Business, 22.06.2019 11:30
Which of the following is not an example of one of the four mail advantages of prices on a free market economy
Answers: 1
question
Business, 22.06.2019 19:10
Robin hood has hired you as his new strategic consultant to him successfully transform his social change enterprise. robin has told you that he counting on your strategic management knowledge to him and his merrymen achieve their goals. discuss in detail what you think should be robin’s two primary strategic goals and continue by also explaining your analytical reasons that support your recommendations.
Answers: 3
You know the right answer?
Suppose you think fedex stock is going to appreciate substantially in value in the next 6 months. sa...
Questions
question
Mathematics, 02.03.2021 21:00
question
Mathematics, 02.03.2021 21:00
question
Mathematics, 02.03.2021 21:00
question
Mathematics, 02.03.2021 21:00
question
Mathematics, 02.03.2021 21:00
Questions on the website: 13722367