Business, 05.05.2020 19:09 jfox8741

Imagine that you are holding 5,100 shares of stock, currently selling at $30 per share. You are ready to sell the shares but would prefer to put off the sale until next year due to tax reasons. If you continue to hold the shares until January, however, you face the risk that the stock will drop in value before year-end. You decide to use a collar to limit downside risk without laying out a good deal of additional funds. January call options with a strike price of $35 are selling at $1, and January puts with a strike price of $25 are selling at $2. What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $21, $30, $41? What will the value of your portfolio be if you simply continued to hold the shares?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:20

Aproduction order quantity problem has a daily demand rate = 10 and a daily production rate = 50. the production order quantity for this problem is approximately 612 units. what is the average inventory for this problem?

Answers: 1

Answer

Business, 22.06.2019 19:30

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

Answers: 3

Answer

Business, 22.06.2019 20:20

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.

Answers: 2

Answer

Business, 22.06.2019 21:50

Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?

Answers: 1

Answer

You know the right answer?

Imagine that you are holding 5,100 shares of stock, currently selling at $30 per share. You are read...

Questions