The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a strike price of $120 when the option price is $5. The options are exercised when the stock price is $110. The trader's net profit or loss is A. Gain of $1,000 B. Loss of $2,000 C. Loss of $2,800 D. Loss of $1,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a strike price of $120 when the option price ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Discuss what is at stake for all three groups (management, shareholders, debt holders).
Answers (1)
An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year.
Answers (1)
On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. The assets of the component were sold on October 13, 20 X 1, for $1,200,000.
Answers (1)
To be effective, brand differentiation must be based on tangible as well as intangible differences between brands. T/F
Answers (1)
Mumm Co. issued 10-year $200,000 debenture bonds on January 1, 2015. The bonds pay interest semiannually. Mumm uses the effective interest method to amortize bond premiums and discounts.
Answers (1)
New Questions in Business
Buster industries pays weekly salaries of $17,800 on friday for a five-day week ending on that day. the adjusting entry necessary at the end of the fiscal period ending on tuesday is
Answers (1)
While working in a fast food outlet, Harold observed that most of the customers were working in offices in the neighborhood. Sensing a profitable opportunity, he decided to open a catering business.
Answers (1)
Suppose that dunkin donuts solicited a group of customers to provide feedback on its products over time; for example, completing a survey every six months over a period of years. what marketing research technique would this represent?
Answers (1)
The act of purposely failing to pay taxes is known asThe act of purposely failing to pay taxes is known as withholding. tax evasion. a progressive system. a tax penalty.
Answers (1)
Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2018 for $1,000,000. During 2018, Doane earned $400,000 and paid dividends of $250,000.
Answers (1)