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03.08.2020 •
Business
You sell one Huge-Packing August 50 call contract and sell one Huge-Packing August 50 put contract. The call premium is $1.25 and the put premium is $4.50. Your strategy will pay off only if the stock price is () in August.
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Ответ:
if the stock price is between $44.25 and $55.75
Explanation:
Given that, the investor net gain on premium from option is $1.25 + $4.5 = $5.75.
Thus, the investor has to buy at $50 and obligation to sell at $50 in August.
Hence, investor paid-off is shown as x, of Hug-Packing in August as below:
Spot price <$50: 5.75 - (50 - x) = x - 44.25
Spot price = $50: $5.75
Spot price > $50 : 5.75 - ( x -50) = 55.75 - x
Thus, the strategy will pay off only when:
(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.
Ответ:
Book Value Market Value
Current Assets $14 m $14.95 m
Fixed Assets $18 m $27 m
Total $32 m $41.95 m
Explanation:
For book Value:
Net fixed assets=$18.00 million
Current Liabilities=$7.50 million
net working capital=$6.50 million
Formula:
Net working capital=Current assets-Current Liabilities
$6.50 million=Current assets-$7.50 million
Current Assets=$6.50+$7.50
Current Assets=$14 million
Total Assets=Net fixed assets+Current Assets
Total Assets=$18 m+$14 m
Total Assets=$32 m
For Market Value:
Net fixed assets=$27.00 million
Current Liabilities=$7.50 million
net working capital=$7.45 million
Formula:
Net working capital=Current assets-Current Liabilities
$7.45 million=Current assets-$7.50 million
Current Assets=$7.45+$7.50
Current Assets=$14.95 million
Total Assets=Net fixed assets+Current Assets
Total Assets=$27 m+$14.95 m
Total Assets=$41.95 m
Book Value Market Value
Current Assets $14 m $14.95 m
Fixed Assets $18 m $27 m
Total $32 m $41.95 m