You have purchased one call option expiring in one year with a strike price of $40. the current price of the underlying is $30, the interest rate is zero, and the premium for the call option is $2.63.
(1) draw the payoff and p& l diagrams for the call option at expiration.
(2) what is the p& l on the option at expiration if the underlying is $57.50 (i. e. s, = 57.5)?
Answers: 3
Another question on Business
Business, 21.06.2019 20:30
In the rbv are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies.answers: management policies
Answers: 1
Business, 22.06.2019 01:10
Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?
Answers: 2
Business, 22.06.2019 11:00
Abank provides its customers mobile applications that significantly simplify traditional banking activities. for example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. this unique service demonstrates the bank’s desire to practice which one of porter’s strategies?
Answers: 3
Business, 22.06.2019 12:50
Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false
Answers: 3
You know the right answer?
You have purchased one call option expiring in one year with a strike price of $40. the current pric...
Questions
Social Studies, 22.02.2021 23:10
Chemistry, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
English, 22.02.2021 23:10
Social Studies, 22.02.2021 23:10
English, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
English, 22.02.2021 23:10
Social Studies, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
Mathematics, 22.02.2021 23:10
