Betty and Bob buy 100 shares of stock at $50 per share and sell 1 Call with strike 50 for $6 and sell 1 call with strike 60 for $3.Find the Profit or Loss at expiration if the stock price is$45 ___________$60 ___________$75 ___________Your answers should be as per share quoted price. Be sure to indicate profit or loss.Find the lower and upper break-even points. Your answers should be correct to 2 places after the decimal point.

Answers

Answer 1

The profit/loss at expiration for a stock price of $45 is a loss of $4.91 per share, the profit/loss at expiration for a stock price of $60 is a profit of $10.03 per share. the profit/loss at expiration for a stock price of $75 is a profit of $35.03 per share, the upper break-even point is $53 per share

Profit/loss

To calculate the profit or loss at expiration for each stock price, we need to consider the different scenarios.

If the stock price is $45 at expiration:

Betty and Bob's 100 shares are worth $4,500 ($45 per share)The Call with strike 50 expires worthless since the stock price is below the strike priceThe Call with strike 60 expires worthless since the stock price is below the strike priceTotal profit/loss = ($4,500 + $6 + $3) - ($5,000) = -$491

Therefore, the profit/loss at expiration for a stock price of $45 is a loss of $4.91 per share.

If the stock price is $60 at expiration:

Betty and Bob's 100 shares are worth $6,000 ($60 per share)The Call with strike 50 expires worthless since the stock price is above the strike priceThe Call with strike 60 is exercised, and Betty and Bob sell their 100 shares at $60 per share, resulting in a gain of $1,000 ($60 per share - $50 per share) minus the $3 premium received for selling the call option.Total profit/loss = ($6,000 + $1,000 + $3) - ($5,000) = $1,003

Therefore, the profit/loss at expiration for a stock price of $60 is a profit of $10.03 per share.

If the stock price is $75 at expiration:

Betty and Bob's 100 shares are worth $7,500 ($75 per share)The Call with strike 50 expires worthless since the stock price is above the strike priceThe Call with strike 60 is exercised, and Betty and Bob sell their 100 shares at $60 per share, resulting in a gain of $1,000 ($60 per share - $50 per share) minus the $3 premium received for selling the call option.Total profit/loss = ($7,500 + $1,000 + $3) - ($5,000) = $3,503

Therefore, the profit/loss at expiration for a stock price of $75 is a profit of $35.03 per share.

The lower break-even point is the stock price at which the profit/loss is zero. In this case, we need to find the stock price that makes the total profit/loss equal to zero. We can set up the equation:

($100 * Stock Price) + $6 + $3 - ($50 * 100) = 0Solving for the stock price, we get:Stock Price = ($50 * 100 - $6 - $3) / 100 = $43.91

Therefore, the lower break-even point is $43.91 per share.

The upper break-even point is the stock price at which the Call with the higher strike price becomes profitable. In this case, we need to find the stock price that makes the Call with strike 60 profitable. We can set up the equation:

($60 - $50) * 100 - $3 = 0Solving for the stock price, we get:Stock Price = $53

Therefore, the upper break-even point is $53 per share.

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Related Questions

the larger your down payment amount, the ____________ your monthly payments.

Answers

The larger your down payment amount, the lower your monthly payments. This is because the down payment reduces the principal amount of the loan, which in turn reduces the amount of interest charged on the loan. A lower loan amount with a lower interest rate results in lower monthly payments.

To further explain this concept, consider the following example. Let's assume that you're buying a car worth $20,000, and you're taking a loan for $18,000. If you don't make any down payment, you'll have to pay interest on the entire $18,000 for the duration of the loan, which will increase the total amount you have to pay back. However, if you make a down payment of $5,000, your loan amount reduces to $13,000, and you'll have to pay interest on this amount. As a result, the total amount you have to pay back will be lower, and your monthly payments will be lower too.

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Surfaces on the same body are assumed to experience meteorite impacts with the same frequency. If this is true, what could account for the stark contrast in impact crater density on bordering regions of Ganymede in the photo?.

Answers

Craters are known to be cause by the collision of a meteorite with the Earth. It is true because the surface with fewer impact craters is said to be a new surface.

The factor that account for the stark contrast in impact crater density on bordering regions of Ganymede in the photo is because since it has not been impacted as many times as the older surfaces.

The impact craters are therefore too hard to recognize as a result of weathering and erosion of its surface.

The Moon is known to lacks water, atmosphere, and tectonic activity of which these factors or forces often erode Earth's surface and erase some new impacts.

The impact crater is often influenced by the appearance of impact craters and ejecta are said to be the size and velocity of the impactor.

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Surfaces on the same body are assumed to experience meteorite impacts with the same frequency. If this

how to right a conclusion for human resources​

Answers

Answer:

The conclusion should state once again the problems and solutions that you have arrived at during your research. Learning how to write a human resources essay requires you to be keen on making a good summary of the interpretations and observations described in the main body of the paper.

Explanation:

Hope this helps

QUICKLY PLEASE ITS TIMED!!!!
Which of the following approaches measures team performance by the team's ability to meet specific, predefined goals
O the results approach
the behaviors/process approach
the goals approach
the outcome approach

Answers

Answer:

the results approach.

Explanation:

This is because this approach emphasises on the results and outcomes produced by the team.

The approaches that measures team performance by the team's ability to meet specific, predefined goals is: results approach.

What is result approach?

Result approach is a performance evaluation approach and can be defined as the type of approach that is used to determine a person perfomance based on the outcome of their tasks.

Most companies tend to make use of result approach to know how well an employee perform on the tasks they are assigned especially when the employee meet or achieved the set goals.

Therefore  the approaches that measures team performance by the team's ability to meet specific, predefined goals is: results approach.

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A perpetuity will pay $1,000 per year, starting 5 years after the perpetuity is purchased. What is the present value of this perpetuity on the date that it is purchased, given that the interest rate is 4%?
a. $1,410
b. $20,582
c. $21,370
d. $34,604
PLEASE USE EXCEL AND SHOW STEPS

Answers

Given that a perpetuity will pay $1,000 per year, starting 5 years after the perpetuity is purchased, the present value of this perpetuity on the date that it is purchased, given that the interest rate is 4% can be calculated using the Excel formula:

Answer: $25,000 , none of these:

PV(rate, nper, pmt, [fv], [type]),

where rate = 4%, n per = infinity,

p mt = $1,000, fv = 0, and type = 0 (assuming that the first payment is due after one period).

The present value of the perpetuity can be calculated as follows:

P = PV(4%, infinity, $1,000, 0, 0)P = $25,000

present value of this perpetuity on the date that it is purchased, given that the interest rate is 4% is $25,000.

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Jim owns a gift shop in a commercial building. He pays rent for occupancy, plus maintenance and operating expenses. What kind of lease does Jim have

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There are different kinds of Lease. The kind of lease that Jim have is Net lease.

Net lease is simply known as a contractual agreement that entails a lessee to pays a part or all of the taxes, insurance fees, and maintenance costs for a specific property plus rent.

This kind of lease is known to be the opposite of a gross lease which is where the tenant pays only for a flat rental fee while the landlord is known to pay for the other costs. Jim therefore uses net lease.

See full question below.

Jim owns a gift shop in a commercial building. He pays rent for occupancy, plus maintenance and operating expenses. What kind of lease does Jim have?

Net lease

Percentage lease

Gross lease

Graduated lease

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question content areahow are the objectives of lean manufacturing achieved? a.supplier partnering b.product-oriented production layout c.employee involvement d.all of these choices are correct.

Answers

The  objectives of lean manufacturing are achieved through a combination of different strategies and practices. The four choices listed in the question are all important.

The correct option is D  

Lean manufacturing requires a close relationship with suppliers to ensure that materials and components are delivered in a timely and efficient manner. By partnering with suppliers, companies can ensure that they receive high-quality materials. Product-oriented production layout: Lean manufacturing is based on the principle of flow, which means that products should move smoothly through the production process .

Lean manufacturing relies heavily on the skills and knowledge of the workforce. Hence , all of the choices listed in the question are important for achieving the objectives of lean manufacturing.

Hence , D is the correct option

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Select ALL the correct answers.
Which two of the following are factors of production?
a home mortgage loan
stock in a construction company
a newly built house
carpentry skills
planks of hardwood

Answers

Answer:

stock in a construction company

planks of hardwood

Which two methods can be used to pass conversion attributes such as model type, color, and year of production through a floodlight activity? (select two)

Answers

The two methods that can be used to pass conversion attributes such as model type, color, and year of production through a floodlight activity are: Custom Floodlight Variables, Dynamic Remarketing.

Custom Floodlight Variables (CFV): Custom Floodlight Variables allow you to pass custom data through a Floodlight tag. This method involves creating custom parameters in the Floodlight tag and then passing data through those parameters from the conversion page. For example, you could create a custom parameter called "model" and pass the model type through that parameter.

Dynamic Remarketing: Dynamic Remarketing allows you to show ads to users based on the specific products or services they viewed on your website. This method involves passing data such as product ID, model type, color, and year of production through a Floodlight tag on the product page. This data is then used to show relevant ads to users who viewed that product.

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When the goal, scope and product domain is not understood by the Scrum Team, the Scrum Master should:
a. Direct the Development team to stop working until the product owner improves the acceptance criteria.
b. Cancel the Sprint and schedule new planning meeting.
c. Nothing because it is the responsibility of the Product Owner
d. Facilitate a discussion between the Stakeholder, Product Owner and the Development Team.

Answers

When the goal, scope, and product domain is not understood by the Scrum Team, the Scrum Master should: Facilitate a discussion between the Stakeholder, Product Owner, and the Development Team. The correct answer is D.

When the goal, scope, and product domain are not understood by the Scrum Team, it is the responsibility of the Scrum Master to facilitate effective communication and collaboration between the stakeholders, the Product Owner, and the Development Team. By organizing a discussion among these parties, the Scrum Master can help clarify and align the understanding of the goal, scope, and product domain. This collaborative approach ensures that everyone has a shared understanding and can work together towards a common goal. The Scrum Master plays a crucial role in facilitating these discussions and fostering a productive environment for the Scrum Team. Thus, the correct option is D.

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what difference would it make to the economy if there were no money? What commodities might serve as money instead? Provide reason for your answers.

Answers

Answer:

Well, we would simply be reduced to a barter economy. Therefore we would have to trade items for items.

Explanation:

This is the way it is because "Barter" is The exchange (goods or services) for other goods or services without using money. So if we needed beef, we would have to give the person trading the beef something of ours. As for countries who want to trade, if one needs wool, and one needs iron, and country A has Iron and country B has wool They'd barter the two items.

Which type of advertising does a business use to enhance its image in the market and society?

Through (BLANK) advertising, businesses try to enhance their reputation in the market as well as society.

Answers

Answer:

Public relations

Explanation:

Public relations are the efforts of a company to create good relations between itself and society. It uses the media to relay positive messages about the company to society. Public relations is about creating a goods reputation for the company in the eyes of the community.

In public relations, a company engages in activities that promotes its image in society. It may sponsor sports events,  engage in charity work, or partner with the community in other social activities. When such activities are highlighted in the media, they create a good reputation for the company.

Answer:

Public relations

Explanation:

set up an integral and find the area bounded by the graphs y = 2x-4 and y2 = 4x. show you work calculating the integral.

Answers

To find the area bounded by the graphs

y = 2x-4 and y² = 4x

, we need to first graph the two equations. Then, we need to find the points of intersection between the two graphs.

These points of intersection will give us the limits of integration. Finally, we can set up and evaluate the integral to find the area of the region. Graph the two equations:

y = 2x-4y² = 4x. To find the points of intersection, we can substitute y from the first equation into the second equation: (2x-4)² = 4x.

Expand: 4x² - 16x + 16 = 4xSimplify:

4x² - 20x + 16 = 0

Divide by 4:x² - 5x + 4 = 0Factor:

(x-4)(x-1) = 0x = 1, 4.

So, the points of intersection are (1,-2) and (4,4). The limits of integration are 1 and 4. To find the area bounded by the two graphs, we need to set up and evaluate the integral. We can use the formula:

\(∫[a,b] [f(x) - g(x)] dx\).

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organizing an incident by breaking down the overall strategy into a series of smaller tasks is an example of:

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An example of span of control is structuring an incident by dividing the overall plan into several more manageable jobs.

By "organization," what do you mean?

An organization is made up of a group of people who work together, like in a union, business, nonprofit, or local association. A person, a group, a business, or the act of generating something can all be referred to as a "organization."

What does organizing one's life involve?

The phrase is often utilized in this manner. The arrangement of elements for the execution of activities required for life, according to science, is what is meant by "organization." McKendrick will in 2021 Organization in biology refers to the hierarchy of complex biological systems and structures.

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Pete and Mason are shopping for Cheese-its for a class activity. They needed several boxes. Which prices give the better deal.
A. $1.25 per box
B. $5.50 for 3 boxes
c. Buy 1 at regular price ($3.50) and get one at 50% off
D. $2.75 per box and a coupon for $1.00 off

Answers

Answer:

I believe A. $1.25 per box would be the best deal.

Explanation:

This is because A is $1.25 per box,

B. is about $1.83 per box (5.50/3 divided by 3/3 = about 1.83/1)

C. Would be 1 box = $3.50, and the next $1.75 (which is still not less then just $1.25 per box)

and D. would be $2.75-$1 off = $1.75

Out of all of them, A is cheapest/gives the best deal.

Not sure if all calculations are correct, but I hope this helps! :)

Which two of the following are long-term sources, of finance?
A- Interest rates
B- Venture capital
C- Trade credit
D- Share capital
E- Start up costs​

Answers

Answer:

the answer is B and D

When exit occurs in a monopolistically competitive industry the A. perceived demand and marginal revenue curves will shift to the right. B. perceived demand and marginal revenue curves will shift to the left. C. perceived demand curve will shift to the left. D. marginal revenue curve will shift to the left.

Answers

When exit occurs in a monopolistically competitive industry the perceived demand and marginal revenue curves will shift to the right.

In economics, demand curve refers to a graphical representation of the relationship between the price of a good or service and the quantity of it demanded by consumers. It is an important concept in understanding how changes in the market impact the behavior of buyers and sellers.

The suitable option is A. If the perceived demand and marginal revenue curves shift to the right, this means that the demand for the goods or services has increased and that the price that the firms can charge has increased as well.

This shift to the right in the demand curve is a result of the exit of a firm creating a gap in the market, leading to an increase in demand for the remaining firms.

In summary, changes in the market, such as an exit, can have significant effects on the demand curve in a monopolistically competitive industry.

Understanding the changes in the demand curve is important for firms to make informed decisions and for consumers to understand the impact of market changes on prices and availability of goods or services.

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what is a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization?

Answers

The broad term that encompasses the protection of information from accidental or intentional misuse by people both inside and outside an organization is known as information security.

Information security refers to the safeguarding of digital information and systems from unauthorized access, usage, disclosure, disruption, modification, or destruction. Information security may be provided in a variety of ways, including administrative, technical, or physical measures, or a combination of all three. Information security is concerned with safeguarding information's confidentiality, integrity, and availability from unauthorized access, modification, theft, or loss.

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The prosecutor replies that the Bill of Rights does not protect you from state actions. Is the prosecutor correct? Why or why not

Answers

Answer:

I would say no, because the bill of rights refers to ALL Americans. I might be wrong tho.

The largest market opportunity
group has the most people in it.
However, every competitor has
completed the same analysis, so
which of the following is true
regarding the largest market
opportunity group?

A. The largest market opportunity should be avoided by businesses

B. The largest market opportunity will likely have the most competitors

C. Businesses should always serve the largest market opportunity

38 points

Answers

Answer:

C. Businesses should always serve the largest market opportunity

Explanation:

The largest market opportunity will likely have the most competitors. While the largest market opportunity group has the most people in it, it is likely that many other businesses have completed the same analysis and are targeting the same group. Therefore, businesses should be aware that the largest market opportunity group will likely have the most competitors.

JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $219,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?

Answers

Answer:Net working capital = $152,500

Explanation:

Net working capital = CA– CL

Where CA= Current Assets = Cash + Inventory + Accounts Receivable

and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes

CA=$54, 000 + $184,000 + $ 219,000 =$457,000

Current liabilities = Account payable + Notes payable + accrued wages and taxes

CL = $134,000 + $129,000 + $41,500 = $304,500

Net working capital = Current assets – Current liabilities

Net working capital = $457,000 – $304,500=  $152,500

Net working capital = $152,500

What does deficit spending require a government to do?

lay off workers
cut taxes
take on debt
hire more workerscy

Answers

Answer:

c. TAKE ON DEBT

Explanation:

A deficit spending require a government to: C. take on debt.

What is deficit spending?

A deficit spending can be defined as a situation in which the expenditure of government exceed the amount of money generated as revenues over a fiscal period.

This ultimately implies that, deficit spending typically occurs when government's expenditure is greater than its revenue over a specific period time.

Consequently, government tends to resort to borrowing or taking debt when there is deficit spending in its budget.

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Can I Plss get some help on this

Can I Plss get some help on this

Answers

The reason the government monitors the size of the money supply is so that they can maintain stability and limit inflation.

Why should money supply be monitored?

Money supply impacts the level of inflation in a country and therefore the stability of the nation as inflation is tied to economic stability.

The government would therefore try to maintain a level of money supply that leads to an inflation rate that is not too high or low, but will contribute to economic growth.

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A bookstore costs $90 a day to keep open, and spends $12 for each book it sells. The store charges $18 for each book it sells. If n represents the number of books sold, which equation represents the cost function for this bookstore?
O A. C = 90n + 15
O B. C = 12n + 90
O C. C = 18n + 90
O D. C = 90n + 12​

Answers

Answer:

The correct answer is B just got it right on ape

Explanation:

What kind of data do people need at each level of detail in order to support the work they do for their role in the supply chain

Answers

The type of data needed at each level of detail depends on the role and responsibilities of the individual within the supply chain.

Top-level executives: These individuals need high-level data that provides an overview of the supply chain's performance. They might use data such as revenue, profit margins, and customer satisfaction rates to make strategic decisions. They also need data on industry trends and competitor activity.

Sales and marketing teams: These teams need data that provides insights into customer behavior, such as purchasing patterns, preferences, and complaints. They might use this data to adjust marketing strategies, identify new markets, and optimize pricing.

Procurement teams: These teams need data on suppliers, including pricing, quality, and delivery times. They might use this data to negotiate better deals with suppliers and ensure that the supply chain is running efficiently.

Logistics teams: These teams need data on inventory levels, shipping times, and transportation costs. They might use this data to optimize shipping routes, reduce transportation costs, and ensure that products are delivered on time.

Operations teams: These teams need data on production processes, quality control, and equipment maintenance. They might use this data to optimize production processes, reduce waste, and ensure that products meet quality standards.

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Todd, a travel agent, lost his job due to no need for his skill. This is an
example of what type of unemployment?
A. Cyclical unemployment
O
B. Voluntary unemployment
C. Structural unemployment
D. Frictional unemployment

Answers

The answer is be because the he chose to leave I think

a job cost record is used to accumulate all of the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job. True or false?

Answers

The given statement "A job cost record is used to accumulate all of the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job" is true.

A job cost record is a document that is used to record and summarize all of the costs associated with a specific job, order, or contract. The main purpose of a job cost record is to help a business or company determine the total cost of a job or order and to provide a record of all the expenses associated with the job.In a job cost record, all the direct and indirect costs are recorded.

Direct costs are the costs that can be directly traced to the production of goods, such as raw materials and direct labor costs, whereas indirect costs include manufacturing overhead and other indirect costs such as insurance, depreciation, and utilities that cannot be directly traced to a specific product or service. Determining the cost of goods sold is critical for a company's profitability.

The job cost record helps companies determine the overall profitability of a job by comparing its revenue to the total costs of direct materials, direct labor, and overhead needed to produce the goods.

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need help
7. There are SEVEN (7) C's of effective communication, list the FIVE (5) C's of effective communication which are needed to both written and oral communication? Identify and elaborate. (15 marks)

Answers

The five C’s of effective communication that are required in both written and oral communication are clarity, completeness, conciseness, coherence, and correctness.

A message is said to be clear when the sender's thoughts are conveyed to the receiver without any ambiguity. This is achieved by using simple language and avoiding jargon or complex sentences. Clarity in communication ensures that the receiver of the message understands the message without any difficulty.2. Completeness: A message should contain all the required information so that the receiver does not have to ask for additional information. Incomplete communication may cause confusion or misinterpretation. It is therefore essential to ensure that the message includes all the necessary details.3. Conciseness: It refers to the quality of a message that is brief and to the point.

A message should be free from errors such as grammatical mistakes, spelling errors, and punctuation errors. Correctness in communication ensures that the message is not misinterpreted and has the desired effect.

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What expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern?

Answers

Expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern including increasing government spending, decreasing taxes, or increasing government transfers.

What is the purpose of expansionary fiscal tools?

The purpose of expansionary fiscal tools is to augment growth to a healthy economic level, which is significantly required during the contractionary phase of the business cycle.

In this phase, the government has the desire to decline the standard of unemployment, enhance consumer demand, and circumvent a recession. If a recession has already taken place, then it searches to end the downturn and prevent a recession.

According to the context of this question, each expansionary fiscal tool has its own terms and condition which is imposed on the basis of certain criteria. For this, enhancing the spending of the government, reducing the taxation rates, increasing the transfer made by the government, etc. are the major ones.

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Promotional discounts are given to stores by manufacturers to place their products in preferred locations in the store and to display their products in a ski manufacturer sells a local ski shop 35 pairs of their new store window: skis for $7000, which is a discount of $2,625. What is the percentage of the discount given to the store? (Round your answer to the nearest whole percent.)

Answers

Answer:

27%

Explanation:

The ski was sold for $7,000 which has a discount of $2,625.

the price before discount is

= $7,000 + $2,625.

=$9,625

the discount as a percentage

=$2,625 / $9,625  x 100

=0.272727 x 100

=27.27%

=27%

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