Ask Question
26 May, 05:53

In April, a customer buys 1 MCS Oct 50 call for 9 and sells 1 MCS Jul 50 call for 4. What will the customer's profit or loss be if he buys back the July call for $1 and sells the October call for $12?

+4
Answers (1)
  1. 26 May, 08:56
    0
    The net gain or profit is $600

    Step-by-step explanation:

    Firstly, we should know the losses of the customer which were:

    9 when the customer bought 1 MCS Oct 50

    1 when the customer bought back 1 MCS Jul 50

    Therefore the total losses were 10.

    And the gains were:

    4 when the customer sold 1 MCS Jul 50

    12 when the customer sold 1 MCS Oct 50

    Therefore the total gains were 16.

    Therefore (16 - 10) * 100 = $600

    Therefore the net gain or profit is $600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In April, a customer buys 1 MCS Oct 50 call for 9 and sells 1 MCS Jul 50 call for 4. What will the customer's profit or loss be if he buys ...” in 📘 Mathematics 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