You pay $3.25 for a call option on Luther Industries that expires in 3 months with a strike price of 39.00. Three months later at expiration Luther Industries is trading at $41.00 per share. If we igore the time value of money, your profit per share on this transaction is closest to:
a) - $2.00
b) $2.00
c) - $1.25
d) $1.25
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You pay $3.25 for a call option on Luther Industries that expires in 3 months with a strike price of 39.00. Three months later at ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
One reason that consumers and businesses might not act rationally is a. it is difficult to obtain enough information about the elasticities of demand and supply. b. they may not realize their actions are inconsistent with their goals. c.
Answers (1)
Two methods, a and b, are available for teaching a certain industrial skill. the failure rate is 20 percent for method a and 10 percent for method b. method b is more expensive, however, and hence is used only 30 percent of the time.
Answers (1)
Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:
Answers (1)
Why are most departments below their authorized strength?
Answers (1)
John Gleason is interested in purchasing a 46" rear projection TV for his living room. John knows that right now the TV will cost approximately $1500.
Answers (2)
New Questions in Business
The producers of a new movie decide that they want three Jeep Cherokees for the main characters (Huey, Dewey, and Louie) to drive.
Answers (1)
What is the disadvantage for companies in using a daily budget?
Answers (1)
Shanon will pay for an annual gym membership that costs $420.00. She has 152.62 in her checking account. What are the pros and cons of using a credit card and debit card for this purchase?
Answers (1)
How was big business regarded by the harding, coolidge, and hoover administrations? as something that had a responsibility to all the people as the basis for tax revenue as america's most important strength as something to be regulated?
Answers (1)
What is the best definition of profit? A. Profit is the possible income from producing an additional item. B. Profit is the price of producing one additional unit of a good. C. Profit is the additional income gained from selling an additional good.
Answers (1)