Question 6 4 pts Questions (A4-A6) are based on the information that follows: A particular...
70.2K
Verified Solution
Link Copied!
Question
Finance
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: Zin AI - Your personal assistant for all your inquiries!
