You have 3000 dollars to invest and you buy as many calls as you can on a stock called BOON, if calls on BOON cost $3.20 with a strike of 32 and the stock costs $30 At what stock price do you break even on an investment of the $3000 in calls?

Q: You are bullish on Unum stock.  The current market price is $50 per share, and you have $4,000 of…

A: calculate gain and interest amount

Q: S Suppose you have $30,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE),…

A: The objective of the question is to calculate the annualized return from two investments in…

Q: Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and…

A: Value of call option = Max(0,ST-K) Where, ST is stock price as time T K is strike price Net profit…

Q: You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Let assume weight of stock X = a the weight of stock Y = 1-a.

Q: You have $10,000 and you decide to borrow an additional $10,000 from your broker (the maximum…

A: Equity value = $10,000 Borrowed value = $10,000 ---------------------------------------------------…

Q: (C) each. You have $10.000 to invest. You invest all the $10,000 in call options on Alphabet Inc.…

A: Current Stock price of Alphabet Inc. = 1000Cal Option having Exercise [rce $1000 is selling for…

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You have $35,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Expected return of portfolio is computed as follows:-Rp= (Rx*Wx) + (Ry*Wy)whereRp= Expected return…

Q: Big Oil, Inc. has a preferred stock outstanding that pays a $9 annual dividend. If investors'…

A: Annual dividend (D) = $9 Required return (r) = 0.10 Required return declines to (r1) = 0.08   We…

Q: You are saving for a house, and you would like to invest your money for the next year to reach your…

A: Risks associated with financial assets can be reduced by using the hedging method. The danger of any…

Q: What is your annualized return from these two investments if, in six months, MMEE is selling for $67…

A: Call Option Price: The price of a call option tends to increase as the underlying stock price rises.…

Q: rice of Home Depot stock is trading for $325 per share. You believe the price is too high. If the…

A: When you trade in the stock market than purchase at right price is important because other wise you…

Q: An investor tells their broker to short 1,000 shares of a stock that is currently priced at $50. Is…

A: A trading or investment technique known as short selling makes predictions about the price decline…

Q: You are bullish on Telecom stock. The current market price is $100 per share. You borrow an…

A: The rate of return on an investment is the difference between the closing price and the opening…

Q: You own 10,000 shares of ABC which is trading at $25. ATM Calls are $8.50 with a Delta of .67 ATM…

A: Delta hedging is a strategy used by traders in the futures market to neutralize the delta of their…

Q: ou are bearish on Telecom and decide to sell short 210 shares at the current market price of $80 per…

A: Given:Number of shares short = 210Current market price= $80Initial margin requirement =…

Q: Suppose you buy 700 shares of XYZ currently trading at $63 per share with a loan from your broker.…

A: If you buy shares on margin then you don't need to pay entire purchase value from your pocket. you…

Q: You want to set up a covered call position on 1,000 shares of XYZ stock. Your goal is to collect the…

A: An option contract is an agreement that provides the buyer with the right to acquire or transfer a…

Q: 4. Suppose that you own 8000 shares worth $20 each. Premium is $4. How can put options be used to…

A: A put option gives the investor the right but not the obligation to sell a specified amount of stock…

Q: Identify and explain the markets in which the following in which the following trade in: used cars,…

A: A market is referred to as the place where all the buyers and sellers trade as per the forces of…

Q: Suppose you have $60,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which…

A: When considering an investment, evaluating different avenues for potential returns is essential.…

Q: Cisco is selling at $45 a share. You would like to buy 200 shares for $42 per share using 60%…

A: Margin money is just like a loan and is offered by the broker to their investing clients giving…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: The stock of Suncor Energy is currently trading for $36 per share. An investor expects the stock…

A: Call option is the derivative product that gives the holder of option to buy stock on expiration but…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: The interest rate at which banks and other financial organizations lend and borrow money from one…

Q: One of the categories of options available to investors and speculators is LEPOs. Assuming 7.00 per…

A: Derivatives refer to contract that derives their values from an underlying asset. Future contacts,…

Q: An investor buys $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: You have $37,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Expected return of a portfolio = (Expected return from stock X *weight of stock X in portfolio) +…

Q: The stock price of Google is $589. You have $10,000 saved in a savings account. The monthly interest…

A: Google stock price = $589Balance amount in saving account = $10,000 @ 0.2%First, we have to decide…

Q: A stock's current price is $20 and a 3-month call with a strike price of $22 sells for $2. You have…

A: Call option-This is a form of a derivative contract.  Under this contract, the call option buyer has…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Value of Purchase = $10000 Stick Price = $40 per share Number of Share =10000/40 = 250 Initial…

Q: You would like to speculate on a rise in the price of a certain stock. The current stOCK

A: Speculation is a strategy of trading stock in which the investor buys or sells the stocks by…

Q: You own 300 shares of Finance Inc’s preferred stock which currently sells for  $30.00 per share and…

A: The preferred stock is a hybrid instrument with the characteristics of both bonds and shares. It…

Q: he initial margin requirement on a stock purchase is 50% and the maintenance margin is 30%. You…

A: Note = According to options its shares 1,000 instead of 100 shares. So I solved this question assume…