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Simon purchased both a call and a put on 280,000 bushels of lentils. Both options have a strike price of $5.00/bushel and a common expiration date. Lentils contracts are based on 5,000 bushels. The price of lentils on the expiration date is $5.38/bushel. A. Ignoring all costs, calculate Simon's total option payoff for these two contracts. B. Assuming that a call costs Simon $0.15 per bushel and a put costs $0.11 per bushel, calculate Simon's total profit or loss on the two positions.

Simon purchased both a call and a put on 280,000 bushels of lentils. Both options have a strike price of $5.00/bushel and a common expiration date. Lentils contracts are based on 5,000 bushels. The price of lentils on the expiration date is $5.38/bushel. A. Ignoring all costs, calculate Simon's total option payoff for these two contracts. B. Assuming that a call costs Simon $0.15 per bushel and a put costs $0.11 per bushel, calculate Simon's total profit or loss on the two positions.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Simon purchased both a call and a put on 280,000 bushels of lentils. Both options have a strike price of $5.00/bushel and a common expiration date. Lentils contracts are based on 5,000 bushels. The price of lentils on the expiration date is $5.38/bushel. A. Ignoring all costs, calculate Simon's total option payoff for these two contracts. B. Assuming that a call costs Simon $0.15 per bushel and a put costs $0.11 per bushel, calculate Simon's total profit or loss on the two positions.
### Research Focus Areas #### Overview: This diagram represents three key research focus areas in the biomedical sciences. Each circle represents a different area of study, positioned in a two-dimensional space. The position and size of each circle may denote the level of focus or importance within the overarching research strategy or funding landscape. #### Detailed Description of the Diagram: 1. **Immunology** - **Color:** Red - **Position:** Bottom-left quadrant - **Size:** Medium - **Description:** Immunology is the study of the immune system, including understanding how the body protects itself against diseases, the mechanisms behind immune disorders, and the development of immunotherapies. 2. **Vaccines** - **Color:** Yellow - **Position:** Top-left quadrant - **Size:** Medium - **Description:** Vaccine research focuses on the development of new vaccines to prevent infectious diseases, improving the efficacy and safety of existing vaccines, and understanding the long-term immune responses generated by vaccinations. 3. **Oncology** - **Color:** Blue - **Position:** Top-right quadrant - **Size:** Medium - **Description:** Oncology is the study of cancer, including its causes, development, diagnosis, treatment, and prevention. This area also involves researching new cancer therapies and improving existing ones. Each circle's placement within its respective quadrant might indicate relative priorities or the relationship between these fields. For example, Immunology and Vaccines are closely related, evident from their proximity on the diagram. Meanwhile, Oncology, though distinct, also shares intersections with immunology, particularly in the burgeoning field of cancer immunotherapy.
Transcribed Image Text:### Research Focus Areas #### Overview: This diagram represents three key research focus areas in the biomedical sciences. Each circle represents a different area of study, positioned in a two-dimensional space. The position and size of each circle may denote the level of focus or importance within the overarching research strategy or funding landscape. #### Detailed Description of the Diagram: 1. **Immunology** - **Color:** Red - **Position:** Bottom-left quadrant - **Size:** Medium - **Description:** Immunology is the study of the immune system, including understanding how the body protects itself against diseases, the mechanisms behind immune disorders, and the development of immunotherapies. 2. **Vaccines** - **Color:** Yellow - **Position:** Top-left quadrant - **Size:** Medium - **Description:** Vaccine research focuses on the development of new vaccines to prevent infectious diseases, improving the efficacy and safety of existing vaccines, and understanding the long-term immune responses generated by vaccinations. 3. **Oncology** - **Color:** Blue - **Position:** Top-right quadrant - **Size:** Medium - **Description:** Oncology is the study of cancer, including its causes, development, diagnosis, treatment, and prevention. This area also involves researching new cancer therapies and improving existing ones. Each circle's placement within its respective quadrant might indicate relative priorities or the relationship between these fields. For example, Immunology and Vaccines are closely related, evident from their proximity on the diagram. Meanwhile, Oncology, though distinct, also shares intersections with immunology, particularly in the burgeoning field of cancer immunotherapy.
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