"A customer buys 5 ABC Jan 30 Straddles for a total premium of $3,500. Just prior to expiration ABC stock closes at $21, and the customer closes the options positions at intrinsic value. The customer will have a:"

Answers

Answer 1

Answer:

$1,000 gain

Explanation:

At the time when the customer purchased straddle, the call and put option is purchased for a similar stock with similar price and expiration date

As it is to be shown that the customer purchased  5 ABC Jan 30 calls and 30 puts

Also the worth of each contract is

= $3,500 ÷ 5

= $700

Now if the price is less than $30, so the call option should not be considered and the put option should be considered as the value is $21

So, here the profit is

= ($30 - $21) × $100

= $900

So here profit per option is

= $900 - $700

= $200

So, the total profit is

= $200 × 5 options

= $1,000


Related Questions

Unredeemed cash rebates related to current year sales should be estimated and the amount treated as a(n)

Answers

Answer:

Explanation:

This should be estimated as a reduction in revenue and the amount treated as a liability. This is because the cash rebates are generally part of earned revenue but since they have not been redeemed then it needs to be reduced from the actual calculated revenue since it is not physically owned yet. It is also a liability because the company has a responsibility to redeem the cash rebates.

Which action should a job seeker iWhich item forms part of your career portfolio? A forms an important part of your career portfolio. deally take by the end of an interview?

Answers

Question 1: Which action should a job seeker ideally take by the end of an interview?

Question 2: Which item forms part of your career portfolio?

Answer 1:

At the end of an interview, the jobseeker should demonstrate interest in the company by asking questions about the job, and about the company.

Depending on the role, some questions that the candidate that ask are:

If I am selected for this role, what would you expect me to achieve in the first 60 days of the job? this shows that you are intersted in knowing what the immediate focus or priority for the role is. A followup question to the answer to this would be to know what the company is focused on achieveing at the moment and how it is related to the roleWhat is the organisational culture like? Every organisation has it's culture. The organisation should disclose this as it helps canidates prepare their mind against how they'd navigate corporately and politicallyCan I ask to know the rate of attrition here? This is a tough question for company whose numbers are not too good. In essensence, it tell you how the company is performing. A company with a high attrition rate is not doing some right and if it's not fixed, might not qualify as a company of the future.

Answer 2

A career porfolio is a compendium of all of your educational qualification, skills and achievements in the various jobs you have done. It is a snapshot of the kind and quality of value that you can bring to an organisation.

A career portfolio should contain the following:

Summary of Education: In this sectionm you want to ensure that you include the following - Schools attended and references from some of your teachers or lecturers. At the least, you may provide their names and contact.Activities/Hobbies: This helps your prospective employer to know who you are outside of work. This, in some cases may tell the employer whether one is a job fit or not. If for example the preson specification requires someone who is outgoing and social, a job fit would probably be one someone who plays golf, loves to attend social functions and probably has travelling as a hobby.Personal Strenghts: If you are able to spell out your strenghts accurately, it reduces the amount of work the recrutier has to do to match you against the role and the organisation.

 

Cheers!

GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00. What would the net value of a long straddle position be if the stock price at expiration is $35?
A) 7.15
B) $1.15
C) $1.15
D) $7.15
E) $36.15

Answers

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value =(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

Net value = ($35-$29)-$2.90-$1.95

Net value=$6-$2.90-$1.95

Net value=$1.15

Therefore the net value of a long straddle position will be $1.15


Kegan borrows $78 from his sister. He will pay her back over a 4-week period. If he pays the
same amount each week, how much will he have paid back after the third week?

Answers

Answer:$58.50

Explanation:

You start by dividing the total amount by the total number of weeks. So, 78/4= 19.50 x 3 weeks. $58.50 after the third week.

what to nations and businesses use to see how much producing some good will cost them in terms of not producing other goods

Answers

Answer:

Countries use the production possibilities schedule and the production possibilities frontier. (PPF)

Explanation:

These are theoretical and practical tools that are used to determine the opportunity cost incurred when choosing production alternative betwen two or more goods.

In the PPF in particular, good x (for example, sugar) is shown in the x axis, and good y (for example, butter) is shown in the y axis. A curve can be drawn, that illustrates the production possibilties between the two goods: for example, a country can produce either 200 units of sugar and 100 units of butter, or 200 units of butter, and 100 units of sugar.

The points on the curve are efficieny points: production quantities in which all available resources and being utilized efficiently.

Points inside the curve are inefficient: they represent output that is produced with available resources being used inefficiently.

And points outside the curve are unattainable because of lack of resources.

Which of the following falls under criminal law as it pertains to business?
A. A tailor losing the buttons to a shirt
B. A bakery messing up a couple's wedding cake
C. A store selling explosives to minors
D. A design company not providing all due files

Answers

Answer:

C.

Explanation:

They are selling explosives.

Answer:

C. the one with the bombs

Explanation:

9. When paraphrasing, which of the following must a student do:
1. Introduce the source before the paraphrase.
2. Must make significant changes to the phrasing, sentence structure, and word choice.
3. Provide parenthetical documentation of the page number after the paraphrase.
4. Put a bibliographic citation in the references section at the end of the paper
5. They are all necessary.
6. None of these are necessary.

Answers

Answer:

5. They are all neccessary

When paraphrasing, first introduce the source before the paraphrase then make significant changes to the phrasing, sentence structure, and word choice then provide parenthetical documentation of the page number after the paraphrase after that put a bibliographic citation in the references section at the end of the paper. Option (5) is correct. all steps are necessary.

What do you mean by Documentation?

Any communicable material used to describe, clarify, or provide instructions for certain characteristics of a thing, a system, or a procedure, such as its components, assembly, installation, maintenance, and use, is considered documentation.

When you paraphrase, you give someone else's thoughts your own style while maintaining the original meaning. Summarizing is the process of distilling the major points from a lengthy portion of someone else's writing into your own words.

Therefore, Option (5) is correct. All steps are necessary.

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A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need?
A) Endowment at Age 75
B) Universal Life
C) Graded Benefit Whole Life
D) Modified Whole Life

Answers

Answer:

B) Universal Life

Explanation:

UNIVERSAL LIFE INSURANCE is a type of insurance which is very flexible because it enables a person or an individual to pay monthly insurance fee in which the fee will be divided into two different part where one of the fees will cover the individual life insurance and the second one will go into the person saving and investment account .

Secondly UNIVERSAL LIFE enables the holder of the policy to choose how much premium he or she wishes to pay.

Thirdly UNIVERSAL LIFE INSURANCE is an insurance that tend to last for the whole entire life of the policy holder reason been that the insurance is constant and it is everlasting meaning it does not change.

Therefore based on the information given about the 42 years old Executive the policies that will best meet this need will be UNIVERSAL LIFE INSURANCE

You are offering a job at a salary of $40,000 per year. The cost of annual health insurance for this person is $1,200 per month. If the company will pay for 75% of this cost, what is the annual cost to the employee

Answers

The annual cost to the employee is $40,800

Given that,

You are offering a job at a salary of $40,000 per year. The cost of annual health insurance for this person is $1,200 per month.

Calculation of the annual cost:

= 75% of ($40,000 +  ($1,200 × 12))

= 75% of ($40,000 + $14,400

= 75% of $54,400

= $40,800

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___ is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Answers

Answer:

Threat of substitute products or services

Explanation:

Threat of substitute products or services  are one of Porters Five forces.

When there are many substitutes for a product, consumers can easily start consuming a substitute.

For example, there are different brands of cars. If the price of one brand of car, let's say Mercedes increases, consumers can easily start purchasing cheaper brands like Toyota or Avensis .

On the other hand, food is a necessity with almost no substitutes. If the price of food increases, consumers have no other option but to continue buying food as food is needed for survival.

After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its newaccounting basis. Which of the following statements about subsequent reversal of a previously recognized impairment loss is correct under U.S. GAAP?a. It is prohibited.b. It is required when the reversal is considered permanent.c. It must be disclosed in the notes to the financial statements.d. It is encouraged, but not required.

Answers

Answer:

A, it is prohibited

Explanation:

Under the U.S GAAP, subsequent reversal of a previously recognised intangible asset impairment loss is prohibited with the exception that the intangible asset is held up for the purpose of sale.

Cheers.

External________ lead to an overallocation of resources to the specific economic activity. Two possible ways of correcting these spillovers are_______ and________.

Answers

Answer:

costs

regulation

taxation

Explanation:

A good has external cost or negative externality if the costs to third parties not involved in production is greater than the benefits. It leads to over allocation of resources to a specific economic activity.

An example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced.

Government can discourage the production of activities that generate negative externality by taxation.  Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Which is the best measurement to use to determine who might have the absolute advantage?
high opportunity cost
low opportunity cost
low efficiency
high efficiency

Answers

Answer:

low opportunity cost

Explanation:

Opportunity cost is described as a process in which an individual sacrifices something when they tend to choose one thing or option over another option or thing.

Low opportunity cost: The term "low opportunity cost" is determined as the possibility of an individual's chosen investment returns to be lower than the forgone investment's returns.

Answer:

High Efficiency

Explanation:

Edge 2021

If an advertiser doesn't want to add remarketing tags to a website, why would Customer Match be a good fit for them? 50

Answers

Answer: Customer Match relies on your own data instead of a remarketing tag

Explanation:

The Remarketing tags utility of Gogle Ads targets customers who have already been to a site before by adding them to a remarketing list. If the advertiser does not want to do this, they can use the Customer Match utility.

This will enable them to use both their offline and online data to reach out to people through the information that those people have already shared with the advertiser. The ads will then target those sort of people and others like them based on the data shared with the advertiser.

Megan purchased a new vehicle for $40,000. She put $5,000 down and financed the $35,000 balance over 5 years. What is the impact of this transaction on her net worth?

Answers

Answer: c. Her net worth remains the same.

Explanation:

Her Net worth would be her assets less her liabilities.

Her added Assets would be the new vehicle less the amount she put down for it as this would reduce her cash holdings.

Her added liabilities would be the amount she owes from buying the car

= Net Assets - Liabilities

= ( 40,000 - 5,000 ) - 35,000

= $0

The addition to her Net Worth is zero so her net worth remains the same.

Which of these should a company consider before implementing cloud computing technology? a)Employee satisfaction b)Information sensitivity c)All of the Options d)Potential cost reduction

Answers

Answer:

Implementing cloud computing technology, the company should consider:

d)Potential cost reduction

Explanation:

Cloud computing technology uses software applications where the software and data are accessed by users and customers through the internet.  When a company considers this option of hosting its software applications and storing data, the first consideration should center on the potential cost reduction that will be gained by so doing.  Then, it is also important to consider the risks of data integrity and access levels.

All of the above options should a company consider before implementing cloud computing technology. These options are Employee satisfaction, Information sensitivity and Potential cost reduction.

Cloud computing is known to be an application-based software infrastructure. It helps to stores data on remote serves that can be accessed through the internet.

The front end helps a user to access data stored in the cloud using an internet browser or a cloud computing software.

It is known as the delivery of computing services such as servers, storage, databases, networking, software, analytics, and intelligence using the Internet.

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As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are three outcomes for this investment. What is the expected return on investment using the information below? Outcome Probability Return 1. .50 .15 2. .30 .25 3. .20 .10 Make sure your answer is in decimal format (.30, .40, etc.) and not a percentage. Round to the nearest hundredth place (i.e. .264 -> .26) if necessary.

Answers

Answer:

Expected r = 0.17

Explanation:

The expected return on the investment can be calculated by taking the return in each scenarios and multiplying it with the probability of that scenarios and taking the sum of the results. Thus, the equation to calculate expected return will be,

Expected r = pA * rA  +  pB * rB  + ... + pN * rN

Where,

pA, pB, ... represents the probability of each scenario A, B and so onrA, rB, ... represents the probability of each scenario A, B and so on

Expected r = 0.5 * 0.15  +  0.3 * 0.25  +  0.2 * 0.1

Expected r = 0.17

Several factors differentiate between those companies that use a sales orientation and those that use a market orientation. One factor relates to how a company defines its business. Which of the following business definitions or mission statements best characterizes an organization pursuing a sales orientation?a. JetBlue: To inspire humanity—both in the air and on the ground.b. American Express: We work hard every day to make American Express the world's most utilized credit card.c. Workday: To put people at the center of enterprise software.d. Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.

Answers

Answer:

b. American Express: We work hard every day to make American Express the world's most utilized credit card.

Explanation:

Sales orientation refers to a approach in which the firm is focused on improving the sales with respect to the products and services they are offering

According to the given options, the option B should be selected as the company hard every day for making the most utilizing credit card so it defines that the card is familiar with the public that represents the sales motive behind this

Therefore the option  B is correct

An alumni association for a local university was started 12 months ago and has 150 members. Assuming the association has by-laws and a constitution and plans to meet annually, when can it buy group insurance for its members?

Answers

Answer:

in order for the association to be able to purchase group insurance it must be active for at least two years.

Explanation:

Besides the two year period, the association must also have more than 100 active members (this one has 125), have by-laws (they have them), meet at least once a year (they plan to do so), and have a legal constitution (they have it). If everything goes as planned, this association should be able to purchase group insurance in one year.

What is the arrangement between two carriers as to who pays what on a medical bill in order to avoid payment duplication called

Answers

Answer:

coordination of payments

Explanation:

Coordination of payments is a term often used in the insurance-related operation, which describes a situation whereby two insurance companies or carriers work together to make actual payment of what is on a medical bill. The purpose of this coordination is to ensure that there is no double payment or payment duplication is avoided.

Hence, the correct answer in this situation is termed as Coordination of payments

Murphy had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. If dividends were $ 90 comma 000​, how much was Murphy​'s net income for 2018​? Use the accounting equation and the statement of retained earnings. A. $ 106 comma 000 B. $ 196 comma 000 C. $ 286 comma 000 D. $ 16 comma 000

Answers

answer: your mom gave you money

The Earth’s surface is divided into __________ continents and __________ oceans.

Answers

Answer:

The Earth is divided into 7 continents and 5 oceans

Explanation:

hav a nice day

Happy if i get brainlest

Answer:

7 continents

5 oceans

Explanation:

Continents: Africa, Asia, Europe, Australia, North America, South America, and Australia

Oceans:  Atlantic, Pacific, Indian, Arctic, and Southern (Antarctic)

Under the laws of descent, who gets a property when its owner dies without a will and no legal heirs can be found?

Answers

Answer:

The government takes hold of the property, or on some ocassions it is given in charity.

Explanation:

International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world?

Answers

Answer:

China&the U.S.

Explanation:

These two countries are lead producers and importers. You lift the tag of your favorite sweatshirt and see Made in China. The U.S. does'nt produce as much goods, but importing is a big U.S. sideline business. The U.S. imports alot of goods worlwide. From The Indies to The Middle East, the U.S. is a lead importer.

Which of these tasks can be accomplished when the drop-down menu of the Bullets icon is clicked? Check all that
apply.
Indent the ideas in the bulleted list.
Change the number level of the list.
Choose the bullet to be used in the list.
Define the new bullet to be used in the list.
Pick the number format to be used in the list.

Answers

The task that should be achieved at the time when the drop-down menu of the bullet icon should be clicked is

Select the bullet i.e. applied in the list.Define the new bullet applied.

For drop-down the menu when the bullets icon should be clicked, the task should be

Select the bullet.And, defined the new bullet.

The other options should be ignored.

Learn more about the bullet here: brainly.com/question/6669700

Answer:

C. Choose the bullet to be used in the list.

D. Define the new Bullet used in the list.

Explanation:

Got them right on edge

A(n) ______ is defined as an attribute or quality of an individual that accounts for successful performance.

Answers

Answer:

Strength.

Explanation:

A strength is defined as an attribute or quality of an individual that accounts for successful performance.

Basically, it is an attribute which must be possessed by any individual or group of people who are in the position of leadership.

my birthdays coming up... what should I ask for since everyone is asking :/

Answers

Answer:

a ps5 or xbox or switch or pc

Explanation:

cause gaming

Oculus Quest if you are a gamer


What do you mean by Women's Right?​

Answers

Women having equal rights to men. This means getting equal pay, treatment and opportunity that men get

The price of good X increases from $55 to $60, and quantity demanded decreases from 500 to 400. The price of good Y increases from $55 to $60, and quantity demanded decreases from 500 to 475. Given this information, the:

Answers

Answer:

demand curve for Good X is more elastic than the demand curve for Good Y

Demand for good X is elastic because the coefficient of elasticity is greater than 1.

Demand for good Y is inelastic because the coefficient of elasticity is less than 1.

consumers who buy Good Y are less sensitive to price changes than consumers who buy Good X

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

For good X,

Percentage change in price = $55 / $60 - 1 = | -0.0833| = 8.33%

Percentage change in quantity demanded = 500 / 400 - 1 = 0.25 = 25%

Elasticity of demand = 25% / 8.33% = 3

Demand for good X is elastic because the coefficient of elasticity is greater than 1.

For good Y,

Percentage change in price = $55 / $60 - 1 = | -0.0833| = 8.33%

Percentage change in quantity demanded = 500 / 475 - 1 = 0.0526 = 5.26%

Elasticity of demand = 5.26% / 8.33% = 0.63

Demand for good Y is inelastic because the coefficient of elasticity is less than 1.

consumers who buy Good Y are less sensitive to price changes than consumers who buy Good X

Donna has a home that is insured to its maximum value. She often leaves the door unlocked in case she forgets her keys. She knows that her insurance policy will pay for any losses if her home is robbed. Which of the following best applies to Donna?
a. moral/morale hazard
b. physical hazard
c. societal hazard
d. none of the above

Answers

Answer:

a. moral/morale hazard

Explanation:

A moral hazard is a term used in insurance to describe the attitude of an individual towards his property.

In the question above, Donna leaves her home open which is not ideal despite insuring it.

But as a result of her ability to forget her keys at home, she leaves the door open.

Cheers.

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Use the periodic table to select the element that best fits each of the following descriptions.Alkali metal:aluminumcalciumlithium Solve for x: -1 < x + 3 < 5 Find 3.2458+1.221+4.45 Which statement correctly describes the translation of trapezoid P to create the image A 32 ounce soft drink costs $1.83. Approximately what is the price per ounce Use the number line to determine which of the following statements is true. Each tick is 1 unit. The quotient of P and S is positive. The absolute values of Q and R are the same. Q and S are opposite numbers. The product of R and S is negative. Two equations are shown. Equation 1: -0.5x-4=1.5 Equation 2: -0.5(x-4)=1.5 Select each statement that must be true. PLZ HELP ME! The endpoints of EFare E(1,3) and F(-2,8).Find EF. which of these people wold likely disagree with the argument made by Bossuet Assume that you found an object that looks like a dead twig. You wonder if it might be a stick insect. How could you determine if it is a living thing? What is the best definition of nationalism? 1- concern for a nation above concern for individuals who live there. 2- belief that ones nation should be more powerful than any other nation. 3- desire by a group with a shared background to form their own nation. 4- faith in the power of nations to join together and form a united front. If the probability that your DVD player breaks down before the extended warranty expires is 0.034, what is the probability that the player will not break down before the warranty expires r+(-8) = 10Can someone help me ? A store is having a sale on hats. The sale is buy one hat, get one 50% off. The original price of one hat is $24.98. Cole bought several hats, and the total cost was $99.92 , How many hats did cole buy ? Why incoporating different strategies are necessary insdie the classroom? You're infatuated with the person next to you. Do you hate them? Explain. how are Saudi Arabia and the U.S. similar? I NEED THIS ANSWERED ASAP A recipe says to use 1/5 cup of flour to make 7/10 serving of waffles. How many cups of flour are in one serving of waffles? Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.TransactionsMar. 1 Paid rent for the month, $4,000. 3 Paid advertising expense, $1,350. 5 Paid cash for supplies, $1,800. 6 Purchased office equipment on account, $11,500. 10 Received cash from customers on account, $8,600. 15 Paid creditor on account, $3,180. 27 Paid cash for miscellaneous expenses, $700. 30 Paid telephone bill for the month, $550. 31 Fees earned and billed to customers for the month, $37,200. 31 Paid electricity bill for the month, $830. 31 Paid dividends, $2,000.Journalize the preceding selected transactions for March 2018 in a two-column journal. CHART OF ACCOUNTS Zenith Consulting Co. General LedgerASSETS11 Cash12 Accounts Receivable13 Supplies14 Office EquipmentLIABILITIES21 Accounts PayableEQUITY31 Common Stock32 Retained Earnings33 Dividends How do you add and subtract intergers.