An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? Maximum profit

21. If Fincorp stock trades in a dealer market with bid price of 55.25 and asked price of 55.50, a) Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? b) Suppose you have submitted an order to sell at market. At what price will your trade be executed? c) Suppose you have submitted a limit order to sell at $55.62. What will happen? d) Suppose you have submitted a limit order to buy at $55.37. What will happen?

A stock has a holding period return (HPR) of 8% and a CAPM return of 9%.  Which of the following is true? Select one: a. You should buy it since the actual return is greater than the fair return. b. You should not buy it since the fair return is greater than the actual return. c. You should buy it since the actual return is greater than the fair return. d. You should not buy it since the fair return is less than the actual return.

Options2. Construct profit diagrams at expiration time to show what position in META puts, calls and/or underlying stock best expresses the investor’s objectives described below. META currently sells for $210 so that profit diagrams between $150 and $250 in $10 increments are appropriate. Assume that at-the-money puts and calls currently cost$30 each. The call with strike $190 costs $40 and the call with strike $230 costs $20. (a) An investor wants to benefit from META price drops but does not want to lose more than $30 on the investment. (b) An investor wants to have a positive payoff if the upcoming META earnings announcement is close to market expectations—meaning that the price will not move by more than $20 dollars.

Subject:- finance

An investor buys a stock if price rises 5% from the 250-day low and shorts a stock if price falls 5% from the 250-day high. What is this strategy called? Will it work if the market is efficient? Explain why

Short straddle is an option strategy that involves simultaneously selling a put and a call on the same stock with the same strike price, which is equal to the current stock price. Profit or Loss What is the purpose of this strategy? $400 SO 30 To profit from a large price increase SHORT STRADDLE A To profit from large price deviations from the current price D) To profit from a large price decrease 40 B To profit from the lack of price deviations from the current price 50 Stock Price at Expiration :

Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: The maximum the seller of the put can lose is $ $102 $100 $6 $100 $3

Whats the profit of the "Bearish Put Spread" when stock price is $25, $30, $35, $40, $45, $50, $55, $60, and $65 respectively? Given:  - Stock price = $45.00 - Current option price = 7.0 (put 35) - Current option price = 2.0 (put 45) - Exercise Price = $40.00

You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Profit=...........