Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 6 4 pts questions (a4-a6) are based on th

Question 6 4 pts Questions (A4-A6) are based on the information that follows: A particular...

70.2K

Verified Solution

Question

Finance

image
Question 6 4 pts Questions (A4-A6) are based on the information that follows: A particular stock trades at $42 per share and I own 5,000,000 shares. Call (put) options with a strike price of $40 trade at $3.48 ($0.34) per share respectively. The options are all of one year duration A6. Ms. Johnson (separate scenario) had shorted 10 million shares at the start of the year at $42 per share. She then hedged by using options. At the end of the year the stock trades at $30 per share. What is her net outcome on this gamble? What net profits or losses has she made in $ millions? (a) $85.2 (b) $68.7 (c) $105.9 (d) $948 le) $704 Previous

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Mojo Mining has a bond outstanding that sells for $1,049 and matures in 21 years. The...

Finance
Q

Transversals Use your knowledge of angle relationships to find all the missing angle measurements A...

Geometry
Q

13 3 points A couple makes bi weekly mortgage payments of 978 88 monthly condominium...

Basic Math
Q

What is your average speed in miles per hour and in feet per second if...

Basic Math
Q

Consider the function y 4 sin 2x 7 Give exact answers using fractions and multiples...

Calculus
Q

Answer the following questions about the cotangent function a Is the cotangent function even odd...

Calculus
Q

Given the formula T 8w 2wz solve for z Make sure to use appropriate parenthesis...

Algebra
Q

Pharoah Corporation was formed five years ago through an initial public offering (IPO) of common...

Accounting
Q

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage...

Accounting
Q

How would you differentiate between the legislative approach of Quebec and the rest of the...

Accounting
Q

George Rentals offers machine rental services for concrete cutting. Consider the following costs of the...

Accounting
Q

Exercise 17.15 Using ABC to Determine a Bid Price (LO17-6, LO17-7) Spear Custom Furniture uses...

Accounting