The current stock price of ABC Corp. is 50. Prices for six-month calls on ABC are given in the table below. Draw a profit diagram of the following strategy: Buy one 40 call, write two 50 calls, buy one 60 call, and write two 70 calls. Call Price 40 16.5 50 9.5 60 4.5 70 2

You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a price of $57. The initial margin is 55 percent. Ignore dividends.   a. Construct the equity balance sheet for the original trade  b. Construct equity balance sheets for a stock price of $52 per share c.  What is your effective annual return if you cover your short position at this price in five months?  d, What is your margin?

Suppose stock A is priced at $30/share and the company will pay a dividend of $0.30/share after one month. An investor short sells 50 shares of A and after three months covers the short position when the stock prices is $33.30/share. The continuously compounded risk-free rate is 5%. Calculate the 3-month profit.

Suppose you bought 100 shares of IBM at $200 per share. What is the max loss if you place a stop loss order at $165?

Suppose you recently performed a short sale on IBM stock at $174/share. Initial margin 55 %, maintenance margin 35%. Suppose after the short sale, IBM stock price immediately increasesto $200/share. Will there be a margin call? Show all margin calculations.

A compay expects earnings to be $3.18 next year, after earning $3.00 this year. With PEG ratio of 2.00x, the company's current stock price is closet to: A. $36.00 B. $38.16 C. $39.30 D. $40.45

You've collected the following information from your favorite financial website. 52-Week Price Lo 10.57 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.80 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Acevedo .50 Dividend Yield % PE Ratio Close Price Net Change -.24 -.01 3.07 -.26 18 % 3.3 3.8 2.2 5.2 1.5 6 10 10 6 28 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel t growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 15.30 40.43 88.97 15.43

You've collected the following information from your favorite financial website. 52-Week Price Lo 10.57 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.80 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Acevedo .50 Dividend Yield % PE Ratio Close Price Net Change -.24 -.01 3.07 -.26 18 % 3.3 3.8 2.2 5.2 1.5 6 10 10 6 28 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel t growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 15.30 40.43 88.97 15.43