You purchased two contracts of "ABA December 11 2015 72.00 Put" at $4.20 per option and exercise it when the underlying stock price was $65.50. What is your profit and return on the investment, excluding the commissions?

Q: Assume you purchased 236 shares of XYZ common stock on margin at $85.29 per share from your broker.…

A: the amount borrowed from the broker is total amount less the initial margin

Q: You purchased 50 shares of Z stock in January 2022 for $40 per share. Each year you received a cash…

A: Cumulative return over the investment period is the total return on the investment. It includes…

Q: answer must be in table format or i will give down vote

A: To calculate the payoff and the profit/loss for each option given the stock price of $138 at…

Q: You purchased two $35 call contracts at $3.40 per option. You exercised the option on expiration day…

A: Call Option is a financial derivative contract which givers option buyer a right not obligation to…

Q: It's June, the stock price for CXY is$105.11. CXY does not pay dividends. The November put option on…

A: A put option is being traded in the market. We have to find the arbitrage strategy possible here.

Q: Currently you own no stock or options.  Today's data for Green Corporation, where the call and put…

A: A put option would be exercised if the price of the stock at the time of expiration of the put…

Q: You purchase 8 put option contracts on HSB Industries. The strike price was $45 and the option…

A: An option is a type of financial derivative that is used for hedging. In an option contract, the…

Q: Finance 34.Assume that an investor purchased 1 share of XYZ Ltd last year for $36.86 and this year,…

A: Call option is a derivative contract that gives the buyer the right but not the obligation to buy…

Q: XYZ's stock price and dividend history are as follows: Year 2018 2019 2020 2021 Beginning-of-Year…

A: The rate of return provides valuable insights for investors in evaluating investment performance,…

Q: Provide your detailed explanations to the following questions: 1) You purchase 550 shares of…

A: Margin trading involves borrowing money from a broker to buy stocks, and the amount borrowed is…

Q: Question 1: In the table below you are given the details of the put and call options on the shares…

A: Call option holder A call option gives its holders the right to purchase the shares at the exercise…

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

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

Q: You purchased some shares in Bandicoots R Us on 19 July 2022, at price $50.58. On 25 December 2022…

A: The effective annual return of the stock will be considering the effect of the time duration of…

Q: You purchased 100 shares of Pepsico stock in January 2012 for $55 per share. Each year you received…

A: The capital gain (or loss) and the total dividends received over the investment period. The formula…

Q: Year 2018 2019 2020 2021 Beginning-of-Year Price $ 120 144 108 120 Dividend Paid at Year-End $4 4 4…

A: YearsBeginning of-year-priceDividendAction2018$120$4Buy 3 shares2019$144$4Buy 2 shares2020$108$4Sell…

Q: WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price…

A: Current Price = $120No of Put Options = 8Strike Price = $110Premium = $8

Q: You buy one, Jan 15, 2021 Alphabet Inc. (GOOG) put contract with strike price of $680 and pay a…

A: Strike price = $690Premium paid = $7Number of shares in 1 put contract = 100

Q: You purchased some shares in Bandicoots R Us on 23 March 2022, at price $68.37. On 16 September 2022…

A: Data given : Purchase Price (P0) on 23 March 2022= $68.37 Received dividend on 16 September 2022…

Q: In anticipation of a rise in the stock index, John bought five contracts on August 8 at a premium of…

A: Solution:- Call option means right to buy the underlying asset at an agreed price determined today,…

Q: Assume we are in July, 2023. In July of 2023, the share prices of company B are $80 per share. You…

A: An option is a derivative instrument which gives the buyer the right but not the obligation to…

Q: Your Beloved Machine’s current stock price is $90. YBM December 100 calls trade for $6. a. Adjust…

A: Financial derivatives known as options provide their holders the right, but not the responsibility,…

Q: The share price of XYZ on April 24 is $124. A trader sells 200 put options on the stock with astrike…

A: Number of put options (N) = 200 Strike price (S) = $ 120 Option price (O) = $ 5 Price at the time of…

Q: Assume we are in July, 2023. In July of 2023, the share prices of company B are $80 per share. You…

A: Put option refers to the contract in which the obligation is not provided but the right of the…

Q: Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker .…

A: Interest amount will be computed by finding the leverage amount taken from the broker.

Q: Given the following information, price of a stock: strike price of a six-month call: market price of…

A: A covered call refers to the strategy used by investors where they buy a stock while at the same…

Q: A non-dividend-paying stock is currently worth $59. A forward contract on the stock expires in 0.9…

A: Part 1Current stock price, S0 = $59Risk free rate, r = 7% (continuously compounding)Time, T = 0.9…

Q: You purchase AAPL put option with an exercise price of $120 for a premium of $4.5. You hold the…

A: A put option is right to sell the stock at strike price

Q: The share price of a ABC company on May 15 is 57 $. A trader buys 100 call options on the shares…

A: Option price (OP) = $ 2 Number of call options (N) = 100 Strike price (SP) = $ 60 Stock price at the…

Q: Explain this step by step: Gerald purchased 3 put option contracts at an option premium of $0.95…

A: Given Information 3 Put option contracts are purchased Option premium = $0.95 1.)Strike Price = $40…

Q: Mr. A bought a put option of 6 months for a price of $50. The strike price is $150. At the end of 6…

A: Strike price is the price at which a stock can be bought or sold.

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Purchase Value = No. of shares * Share price  Purchase Value = 100 shares * $100 = $10000

Q: You purchase one Ruth April 25 call contract for a premium of $1.8. You hold the option until the…

A: Strike price of the call option = $25Underlying price = $32Option premium = $1.8

Q: What is the total percent return on the beginning net asset value?

A: The stock return is the change in the price of an investment. It includes the payment of dividend…

Q: In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively. You sell…

A: Transaction costs are costs brought about when buying or offering budgetary resources, such as…

Q: a. Call option, X = 140 b. Put option, X= 140 c. Call option, X= 145 d. Put option, X= 145 Payoff…

A: Options are derivative products they derive value from underlying assets and these give opportunity…

Q: If an investor buys shares in a closed-end investment company for $46 and the net asset value is…

A: Given  purchase price $ 46 Net asset value $53

Q: Suppose that an investor purchases the common stock at the current market price of $58/share and…

A: An investor takes a long stock and a short call position. The net profit (loss) from the position…

Q: ssume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike…

A: Put options gives opportunity to sell stocks on the expiration of period but there is no obligation…

Q: An investor who bought money-market securities at a yield of 5.50% p.a. and sold the parcel for a…

A: The yield is the total return received on the particular securities during the period.

Q: I bought AEO stock on 8/14/2018 for $28.02 and then collected $0.1375 dividend on 10/11/2018 and…

A: The annualized rate of return is the return in percentage terms that an investor can expect from the…

Q: I bought ANF stock on 8/14/2018 for $29.26 and then collected $0.20 dividends on 09/06/2018 and then…

A: The annualized return rate can be found by using the n in terms of years. The price of the stock at…