Suppose you buy four 900-stike puts and sell two 1000-strike calls that will expire in 3 months. Premium for 900 strike put is of $10 while 1000-strike call has a premium of $15. Annual Effective interest rate is 10 percent. | a. Write the profit function for this strategy. b. Draw the Profit graph of this strategy c. Find the profits for the following spot prices: $800 and $1100.
Answers
The profit is = min(900 - 800, 0) * 4 - min(800 - 1000, 0) * 2 + $70 - 10% * $2,100 * 3/12 = -$67.5If S = $1100, the profit is = min(900 - 1100, 0) * 4 - min(1100 - 1000, 0) * 2 + $70 - 10% * $2,100 * 3/12 = $122.5
The profit function for this strategy:The profit function is the income from buying puts minus the cost of buying calls. Total premium received from selling call options is subtracted from the total premium paid for buying put options. $10 * 4 + $15 * 2 = $70, which is the total premium received from selling calls.
Profit function = P(S) = min(900 - S, 0) * 4 - min(S - 1000, 0) * 2 + $70 - 10% * $2,100 * 3/12 b. The Profit graph of this strategy: \(\frac{P(S)}{S}\) = (min (900 – S, 0) * 4 – min (S – 1000, 0) * 2 + $70 – 0.1*2,100*3/12)/S * 100% = [(400-S) * 4 – (S-1000) * 2 + $70 - $157.5]/S * 100% = [(850-S) * 2.5 – $87.5]/S * 100%The profit graph is as follows:c. The profits for the following spot prices: $800 and $1100.
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Related Questions
True or false. The minimum hourly wage for covered workers is established under th authority of OSHA
Answers
The answer is false
OSHA standards only cover the workers safety and protect them from hazards
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:
A fish Connor survive without water and a profession cannot exist without education. Explain
Answers
Explanation:
This is trying to tell us about the importance of "basics" in every aspect of life.
The main basics or ingredient for the survival of a fish is water.
That is it's home,it's habitat,it's cradle of life and so juxtaposing it with a profession,we find out that the basics of any and every profession is Education.
Education on that particular profession.The knowledge of a profession is gotten only through the basics, which is Education,while expertise on that profession is gotten through Education and experience garnered overtime.
Richard has recently finished college and is about to prepare for his exam to become a certified public accountant. He wants to talk to other accountants to learn how best to prepare for this exam. Which professional organization would be most helpful for him to join?
Answers
Answer:
The accountant federation
What were the main factors in both the North and South for the abandonment of Reconstruction?
Answers
Question 3
You should plan on spending two
thirds of your paycheck on rent and
household expenses.
True.
False.
Question 4
Answers
Answer:
true
Explanation:
i think it true sorry if im wrong
on what grounds is the Trump administration investigating imposing tariffs on imported automobiles?
Answers
Answer:
The clock has run out on President Donald Trump's "Section 232" tariffs on imports of foreign-made cars and auto parts, after he failed to announce a decision by a self-imposed deadline, trade law experts say.
The U.S. administration may have to find other means if Trump wants to tax European or Japanese car imports, a key part of the U.S. president's pledge to make America's trade relationships more fair, the experts say.
You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56. Your broker tells you that your margin requirement is 45 percent and that the commission on the purchase is $155. While you are short the stock,Charlotte pays $2.50 per share dividend. At the end of one year, you buy 100 shares of Charlotte at $45 to close out your position and are charged a commission of $145 and 8 percent interest on the money borrowed. What is your rate of return on the investment?
Answers
The rate of return on the investment is -5.28%. This is a negative percentage, indicating a loss. The investor lost 5.28% of their initial investment.
Given data:
Initial price of Charlotte Horse Farms= $56
Dividend per share = $2.50
Commission on purchase = $155
Margin requirement = 45%
Price at which position was closed = $45
Commission on purchase to close the position = $145
Interest on the money borrowed = 8%
First, calculate the amount of money that was required to purchase 100 shares of Charlotte Horse Farms.
Initial amount = $56 * 100 = $5,600
Now, calculate the margin requirement of the investment.
Margin requirement = 45% of $5,600 = $2,520
The amount of money borrowed is = $5,600 - $2,520 = $3,080
At the end of one year, you buy 100 shares of Charlotte Horse Farms at $45 to close out your position. Therefore, the amount spent is = $45 * 100 = $4,500
Now, calculate the amount of money gained from dividends.
Dividends = $2.50 * 100 = $250
Now, calculate the amount of commission paid during the investment period.
Commission = $155 + $145 = $300
The amount of interest paid is calculated as follows:
Interest = $3,080 * 8% = $246
Therefore, calculate the net amount gained or lost from this investment.
Net amount gained = $250 - $300 - $246 = $-296
Rate of return is given by:
Rate of return = (Net gain or loss / Initial investment) × 100%
Substituting the values,
Rate of return = (-296 / 5,600) × 100% = -5.28%
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Which two age groups have seen the sharpest increase as a percentage of taxpayers from 2008 to 2018?
Answers
Answer:
over age 55 paid about 45 percent
The two age groups that have seen the sharpest increase as a percentage of taxpayers from 2008 to 2018 are 45 and 55, 55 and 65.
Who has the sharpest increase as a percentage of taxpayers?This is known to be those who have the biggest increase in terms of the percentage of taxpayers.
The biggest or largest share of the income tax burden is said to be 29 percent and it is one that is often is borne by an approximate of between the age of 45 and 55, and the other next largest share is 23 percent – that are carried by people between the ages of 55 and 65.
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Write the differences between forecasts and plans? How the
S&OP process could help to reconcile the differences that can
be seen by you?
Answers
Forecasts are predictions of future conditions or outcomes, while plans are strategies/actions to achieve specific objectives. S&OP reconciles forecast and plan differences through data-driven discussions, scenario planning, and collaboration.
Forecasts and plans are two important aspects of business management, but they serve different purposes and have distinct characteristics:
Forecasts: Forecasts are predictions of future conditions or outcomes based on available data and assumptions. They are estimates of what is expected to happen, such as projected sales volumes, market demand, or financial performance. Forecasts are typically created through statistical models, market analysis, historical data, and expert judgment. They provide insights into potential future scenarios and help organizations make informed decisions.Plans: Plans, on the other hand, are actions or strategies developed to achieve specific goals or objectives. They outline the steps, resources, and timelines required to accomplish desired outcomes. Plans are more concrete and tangible than forecasts, as they involve the allocation of resources, coordination of activities, and implementation of initiatives. They serve as roadmaps for execution and guide the operational aspects of the organization.The Sales and Operations Planning (S&OP) process plays a crucial role in reconciling the differences between forecasts and plans. S&OP is a cross-functional process that brings together key stakeholders from sales, operations, finance, and other relevant departments to align on a unified plan. It provides a platform for collaboration, communication, and decision-making regarding the organization's supply and demand balancing.
Through the S&OP process, the differences between forecasts and plans can be reconciled in several ways:
Data-driven discussions: S&OP meetings facilitate discussions where forecasted numbers and actual performance are compared and analyzed. Discrepancies and variations are examined, and the underlying causes are identified. This enables the organization to adjust forecasts and plans based on more accurate and up-to-date information.Scenario planning: S&OP allows for scenario planning, where different what-if scenarios are evaluated based on changes in market conditions, customer demand, or internal factors. By exploring various scenarios, the organization can adapt its plans accordingly and develop contingency strategies to address potential risks and uncertainties.Cross-functional collaboration: S&OP brings together stakeholders from various departments, fostering collaboration and ensuring a holistic view of the business. This allows for the integration of sales forecasts, production plans, inventory management, financial considerations, and other relevant factors. By involving different perspectives, S&OP helps align forecasts and plans across the organization.Continuous improvement: S&OP is an iterative process that is revisited regularly to refine and adjust plans based on new information and changing circumstances. By reviewing and updating forecasts and plans periodically, organizations can adapt to evolving market conditions and make necessary course corrections.Overall, the S&OP process acts as a bridge between forecasts and plans, enabling organizations to reconcile differences, align objectives, and make informed decisions. It facilitates better coordination, agility, and adaptability, ultimately improving the organization's ability to meet customer demand, optimize resources, and achieve its strategic goals.
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Monrovia Central Bank. The local currency is the salido. Monrovia banks collectively hold 100 million salidos of required reserves, 25 million salidos of excess reserves, 250 million salidos of Monrovia Treasury Bonds, and their customers hold 1,000 million salidos of deposits. Monrovia prefer to use only demand deposits and so the money supply consists of demand deposits. Refer to Scenario 29-1. 1. Calculate the Money Multiplier 2. What is the value of existing loans made by Monrovia banks?
Answers
If Monrovia prefer to use only demand deposits and so the money supply consists of demand deposits then money multiplier is 10. The value of existing loans made by Monrovia banks is 875 million salidos.
1. The money multiplier can be calculated using the formula: Money Multiplier = 1 / Reserve Ratio. The reserve ratio is the ratio of required reserves to deposits. Therefore, the reserve ratio can be calculated as:
Required Reserves = 100 million salidos and Deposits
= 1,000 million salidos,
hence reserve ratio = Required Reserves / Deposits
= 100 / 1,000
= 0.1.
The money multiplier can now be calculated as:
Money Multiplier = 1 / 0.1
= 10.
2. The existing loans made by Monrovia banks can be calculated as:
Loans = Deposits - Required Reserves - Excess Reserves.
Therefore, the Loans can be calculated as:
Loans = 1,000 million - 100 million - 25 million
= 875 million salidos.
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Jim had a car accident in 2021 in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. Jim used the car 100% of the time for business use. He received an insurance recovery of 70% of the value of the car at the time of the accident. If Jim's AGI for the year is $60,000, determine his deductible loss on the car.
Answers
Answer:
3000 dalers oost
Explanation:
Please select the equipment that qualifies as personal protective equipment.
(Select all that apply)
°Eye glasses
°Laboratory coats
°Particulate respirators
°Headphones
°Metal mesh gloves
Answers
Answer:
•laboratory coats
•Particulate respirators
•metal mesh gloves
Explanation:
Laboratory coats, Particulate respirators, and Metal mesh qualify as personal protective equipment. So, options (b), (c), and (e) are the correct answers.
What is Personal Protective Equipment (PPE)?PPE refers to protective gear, face shields, gloves, goggles, helmets, facemasks, and/or respirators, as well as other equipment designed to keep the wearer safe from damage or the spread of infection or illness.
Chemical, physical, radiological, mechanical, electrical, and other job dangers may cause these injuries and diseases.
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Why is creative thinking important to generate business ideas?
Answers
Answer: Creative thinking is necessary for business problem-solving.
Explanation: The skill of creative thinking is a helpful skill because it teaches workers/business owners to find opportunities and ways to improve something even if the situation is challenging. This also lets the person face a problem or situations by a different view. I hope this helped!
Question 3 Not yet answered Marked out of LOO George transfers the following (assume it is a 351), what is his stock basis? Land (basis $40,000 and FMV of $100,000) Notes payable on land for land impr
Answers
George’s stock basis will depend on the details of the transfer. Generally, when a person transfers property for stock, their stock basis is equal to the adjusted basis of the property.
They transferred. In other words, the stock basis is the cost of the property, reduced by any depreciation taken, plus any improvements made. In this case,. George is transferring land with a basis of $40,000 and a fair market value (FMV) of $100,000, along with notes payable on the land for land improvements.
If the notes are assumed to be nonrecourse and the face amount of the notes is equal to the FMV of the land, then George's stock basis will be the FMV of the land, or $100,000. However, if the notes are recourse or if the face amount of the notes is greater than the FMV of the land, then George's stock basis will be the adjusted basis of the land, or $40,000.
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If peak electricity use occurs around 2 p. M. In the Los Angeles area and avoiding brownouts is more important to the installers of the PV panels than annual energy output, which of the following PV panel systems would be best to use in the area?
A. No tracking tilted south
B. No tracking, tilted west
C. No tracking tilted east
D. No tracking, flat
Answers
If the peak electricity use occurs around 2 p.m. then the best PV Panel system would be B. No tracking, tilted west.
Which PV panel system would be best?The installers would prefer to avoid brownouts around 2 pm which means that they are more interested in the PV panels producing enough electricity around that time.
They should therefore install panels that do not track the sun's movement but will be tilted to the west which would be the location of the sun around 2 pm.
In conclusion, option B is correct.
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A hotel is part of what industry?
A.
Service
B.
Wholesaling
C.
Subcontracting
D.
Cottage
Please select the best answer from the choices provided
A
B
C
D
Answers
Answer: A. Service
Please mark as brainlist
Service i did this
You are the new chief information officer for the video-game developer, necturus games. the company has recently undergone a major expansion of its primary product, and you must staff up the is department and determine the best way to develop new game "capsules" for the game, "escape velocity."
Answers
Answer:
Require a large-scale project manager.
Explanation:
It is the job of a chief information officer to ensure that all the project work is going on smoothly, if any work of the project is not going smoothly, then determine what kind of tasks are required for it.
As a chief information officer of Necturus games, we must ensure that a large scale project manager is required to maintain the project.
Due to the rapid development of game development, Necturus Games will require a large-scale project manager.
24. The company is considering two independent projects with an initial cost of $18,000 each. The cash inflows of Project A are $3,000, $7,000, and $10,000 for Years 1 to 3, respectively. The cash inflows for Project B are $3,000, $7,000, and $15,000 for Years 1 to 3, respectively. The required return is 12 percent and the cutoff discounted payback period is 3 years. Based on discounted payback, which project(s), if either, should be accepted
Answers
Answer: Project B
Explanation:
To find out the project that should be accepted based on the discount rate and the cut-off discounted payback periods, find the present value of the three year cashflows of each project. If it is larger than the initial investment then it should be accepted:
Project A
= 3,000 / (1 + 12%) + 7,000 / (1 + 10%)² + 10,000 / (1 + 12%)³
= $15,376.73
Project A's present value is less than the initial investment of $18,000 so it should not be chosen.
Project B
= 3,000 / (1 + 12%) + 7,000 / (1 + 10%)² + 15,000 / (1 + 12%)³
= $18,935.63
Project B's present value is larger than the initial investment of $18,000 so it should be chosen.
Suppose after the semester ends, you take a trip to an Island of Vieques. Upon arriving at the island, you make a stop at one of the markets and notice that everyone is carrying around jars full of cowry shells. You also notice the person in line in front of you just paid for a twelve-pack old Milwaukee beer with 8 cowry shells. Someone else just bought a Whopper Pizza Combo for 6 cowry shells. Thinking back to your economics class (as painful as that may be), you would conclude that
a) this is a barter economy.
b) those cowry shells are serving as money.
c) cowry shells are valueless.
d) cowry shells soup is a delicacy.
Answers
On a small scale, what should a hospitable relationship between a guest and a host be filled with?
A. goodwill and the desire to provide a pleasing and positive encounter
B. disagreement and constant bargaining over the minute details of the situation
C. no communication and very little interaction between host and guest
D. lifelong friendship and a relationship that grows deeply over the years
Answers
A hospitable relationship between a guest and a host should be filled with mutual respect, kindness, open communication, and genuine concern for each other's well-being. The host should strive to create an environment that is comfortable, welcoming, safe, and accommodating for their guests. The guest should also show gratitude towards the host by being respectful of their space, following any rules or guidelines set by the host or property owner.
Disagreement or constant bargaining over minute details can lead to tension in the relationship between guest and host which may result in negative experiences for both parties involved.
No communication or very little interaction is not conducive to building a good relationship either as it shows lack of interest on part of both sides.
Lifelong friendship may develop from such encounters but cannot be expected as it depends on various factors like compatibility etc.
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the __A___ using __B___ by the __C__ using __D__ and multiplying by 100. However, the CPI reflects only the prices of all goods and services __E____.
A) value of all goods and services produced in the economy this year
B) This years prices
C) value of all foods and services produced in the economy this year
D) the base year's prices
E) bought by consumers
Answers
A) value of all goods and services produced in the economy this year
B) This years prices
C) value of all foods and services produced in the economy this year
D) the base year's prices
E) bought by consumers
A carrier is an "(intangible) act or use for which a consumer, firm, or authorities is willing to pay." Examples encompass work finished by means of barbers, docs, lawyers, mechanics, banks, coverage groups, and so forth. Public offerings are people who society (country nation, economic union or region) as a whole can pay for.
Enterprise services is a fashionable term that describes paintings that supports a commercial enterprise but does now not produce a tangible commodity. statistics technology (IT) is an critical commercial enterprise provider that helps many different commercial enterprise services along with procurement, delivery and finance.
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Plzzz help me with this one
Answers
Answer:
what the question.....
Brownsville Novelty Store prepared the following budget information for the month of May: Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31. All inventory is marked to sell at cost plus 50 percent. Estimated cash disbursements for selling and administrative expenses for the month are $48,000. Depreciation for May is projected at $6,000. Brownsville's budgeted bad debts expense for May is:
Answers
Answer: $10800
Explanation:
Brownsville's budgeted bad debts expense for May will be calculated by multiplying the sales budgeted for May by the percentage allocated to the provision for bad debt. This will be:
= $360,000 × 3%
= $360,000 × 3/100
= $360,000 × 0.03
= $10800
Brownsville's budgeted bad debts expense for May is $10800
When there is a market failure, the market outcome is not socially optimal.
true or false?
Answers
Answer: True
Explanation:
At a socially optimal market outcome, the price of goods and services would incorporate all the costs and benefits of producing it including the third party benefits and costs known as Externalities.
When market failure occurs, it is because individual actions have resulted in an inefficient allocation of resources which means that the goods and services on offer will not adequately include the costs of producing gods and services. This is not a socially optimal outcome so the statement above is true.
Which of the statements below is FALSE? A. A problem with using the dividend growth model is that it appears to underestimate the expected return for some stocks B. A problem with using the dividend growth model is that it produces a negative expected return whenever a firm cuts its dividends. C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks. D. The dividend model requires that a firm have a cash dividend history and that the dividend history shows a constant dividend or a positive growth in dividends.
Answers
Answer:
C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks.
Explanation:
In the case of the dividend growth model, it shows the underestimated of the return for some stocks, also it generated the negative return at the time when the firm could cut the dividend. ALso it needs that the firm has the history of the cash dividend and that history should show the same dividend or the positive growth
But it does not show the underestimate for all kind of the stocks
Advertising on a website is considered mainly what type of advertising media.
Answers
Answer:
Social media advertising
Explanation:
Types of advertising:
Paid search advertising.
Social media advertising.
Native advertising.
Display advertising.
Print advertising.
Broadcast advertising.
Outdoor advertising.
The two conditions that must exist for a sale and the related receivable to be recognized are:__________
Answers
The two conditions that must exist for a sale and the related receivable to be recognized are:
The company has provided goods or services to the customerThe collection from the customer is probable.What are receivables?In finance, receivables refer to amounts of money owed to a company by its customers or clients for goods or services that have been sold or provided on credit.
Accounts receivable, or trade receivables, are the most common type of receivables. They arise when a company extends credit to its customers, allowing them to purchase goods or services without immediate payment. Other types of receivables include notes receivable, which are written promises to pay at a later date, and interest receivable, which is the interest that a company earns on its loans and investments.
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A dataset contains a list of u.s. representatives, the states they represent, the years they were elected, and their salaries. you want to identify the highest-paid representative who was elected before 1/1/2020. what is the best function to use?
Answers
The best function to use for this would be a sorting function. This would allow you to sort the dataset by salary and filter out any representatives elected after 1/1/2020.
What is a dataset?Generally, To identify the highest-paid representative who was elected before 1/1/2020 from a dataset containing a list of U.S. representatives, the states they represent, the years they were elected, and their salaries, the best function to use would be a combination of filtering and aggregation functions.
First, you would need to filter the dataset to include only those representatives who were elected before 1/1/2020. This can be done using a filter function that checks the year of election against the date 1/1/2020.
Next, you would need to aggregate the filtered dataset to find the highest-paid representative. This can be done using a max function that returns the maximum salary value in the filtered dataset.
In summary, the best function to use would be a combination of a filter function and a max function to identify the highest-paid representative who was elected before 1/1/2020.
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. can a one size fits all security appliance be successful for all organizations?
Answers
No, a one size fits all security appliance cannot be successful for all organizations. This is because different organizations have different security needs and requirements.
A security appliance that works well for one organization may not necessarily work well for another organization. Each organization has its own unique set of risks and threats that it must address, and therefore, a customized security solution is usually the best approach.
Additionally, different organizations have different levels of resources available to them, and a one size fits all security appliance may not be able to provide the level of security that is needed for a particular organization.
In conclusion, while a one size fits all security appliance may be a convenient solution, it is not likely to be successful for all organizations.
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