Rick is considering the following alternatives for investing in D Industries, which is now selling for $44 per share:
(1) Buy 500 shares, and
(2) Buy six-month call options with an exercise price of 45 for $3.25 premium.
a. Assuming no commissions or taxes, what is the annualized percentage gain if the stock reaches $50 in four months and a call was purchased?
b. Assuming no commissions or taxes, what is the annualized percentage gain if the stock is at $30 in four months and the stock was purchased
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Rick is considering the following alternatives for investing in D Industries, which is now selling for $44 per share: (1) Buy 500 shares, ...” 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
The inflation tax is an: Multiple Choice explicit tax on firms that raise their prices. explicit tax on wealth. implicit tax on the holders of cash and the holders of assets specified in real terms.
Answers (1)
Skysong Corporation had income from operations of $6,503,700. In addition, it suffered an unusual and infrequent pretax loss of $789,900 from a volcano eruption, interest revenue of $18,630, and a write-down on buildings of $56,090.
Answers (1)
Vista Camera Services started the year with total assets of $ 100 comma 000 and total liabilities of $ 55 comma 000. The revenues and the expenses for the year amounted to $ 120 comma 000 and $ 80 comma 000 , respectively.
Answers (1)
Anderson Co. issued a $43,258, 60-day, discounted note to National Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay:
Answers (1)
What situations would result in lowering of interest rates by the banking authority of a​ country?
Answers (1)
New Questions in Business
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B.
Answers (1)
ALT Inc. conducts periodic reviews of the distribution of pay and the favorable outcomes granted to employees, such as promotions and increased office space.
Answers (1)
If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount? A. Decrease of $2,000 B. Decrease of $2,000 C. Increase of $10,000 D. Decrease of $10,000
Answers (1)
You are invited to go to the mall with a new group of friends from school. you don't know them that well, but are excited that they included you in their plans.
Answers (1)
Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit that are not included in the market basket used to compute the CPI.
Answers (1)