You sold to open 10 25-strike calls for $2.10 each on a stock you own. You own 1,200 shares of the stock, which is currently trading at $23.66. The stock rises to $$25.41 and 1,000 shares are called at $25. What is your total return? (Ignore taxes and transaction costs).

Q: 1) Lisa has a margin account and deposits $2500,000 into it. Assume that the prevailing margin…

A: Initial margin is amount required to deposit in the account with broker and start trading in the…

Q: An investor purchases 100 shares of XYZ at 60 and also writes an XYZ 65 call @3. 18. What is the…

A: Here, Details of Ques-18: Purchase Price of Share is $60 Number of Shares purchased is 100 Exercise…

Q: You own 3,000 shares of stock in Avondale Corp. You will receive a $0.85 per share dividend in one…

A: Liquidating dividends are those that are paid by the company to its shareholders when the company is…

Q: You bought 100 shares of stock at $25 each. At the end of year 1 you received $300 in dividends and…

A: An annual rate of return refers to the rate at which an investment earns profit during a year. When…

Q: Beta Corporation is expected to pay the following dividends per share over the next two years,…

A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…

Q: You sold short 200 shares of META at $130 per share. You put up additional $13,000 to meet the 50%…

A: Each share issued by a corporation that is publicly traded has a fixed price. The cost of a share of…

Q: What is the rate of return when 30 shares of Stock A, purchased for $15/share, are sold for $480?…

A: Rate of return = (Sales Price - Commission - Purchase price) / Purchase price

Q: On January 1, you sold short one round lot (that is, 100 shares) of Snow's stock at $20.00 per…

A: In short sell is virtual selling in which do not own stock but tends to buy later on with decrease…

Q: Michael's, Incorporated, just paid $3.70 to its shareholders as the annual dividend. Simultaneously,…

A: Current Share Price: The current price of a stock, currency, commodity, or precious metal that is…

Q: An investor short sells 250 shares of a stock for $43 per share. The initial margin is 60%. Ignoring…

A: Initial margin The amount kept aside to protect from the risk of the counterparty is known as the…

Q: A corporation has just paid dividend $1.000. If the dividend can grow 20% for the first three years…

A: Solution Concept Dividend discount model can be followed to get the price of the stock We need to…

Q: u've borrowed $24,128 on margin to buy shares in Ixnay, which is now selling at $41.6 per share. You…

A: The margin call price is calculated by multiplying the current price by (1-Initial margin) and then…

Q: purchase You pur snares of Company mmon stock on margin at $30 per share. Assu e initial margin is…

A: There are various sources that are used by the company in order to raise the finance, One of them is…

Q: You own 400 shares of stock of Fresh Face. The company plans to pay a dividend of $.65 in Year 1 and…

A: To answer the question, the following steps will be followed:Find the total dividend amount in year…

Q: You purchased 200 shares of a stock trading at $45 per share and used $6,000 of your own money and…

A: Variables in the question:No. of shares purchased=200Purchase price per share=$45Own…

Q: margin at $35 per share. $2000 is borrowed from the broker to complete the purchase. Determine the…

A: Margin account is to be opened with brokers to start trading in the market and to have open…

Q: purchased 90 shares of a stock at the start of the month, with part of the purchase financed by your…

A: In stock market trading is done through brokers and broker require margin in account and remain…

Q: An investor short sells 100 shares of a stock for 69.07 per share. The initial margin is 50%​, and…

A: A demand for additional funds or securities to be deposited into an investor's or trader's margin…

Q: You purchased 100 shares of Chipotle Mexican Grill, Inc. (CMG) common stock on a margin of $431.79…

A: To calculate the return on equity (ROE) for your investment in Chipotle Mexican Grill, Inc. (CMG)…

Q: On October 1, you sold short 100 shares of Wayne stock at $25 per share. On December 1, a dividend…

A: A short sale is a type of financial transaction where an investor sells a financial item that they…

Q: An investor short sells 100 shares of a stock for $68.59 per share. The initial margin is 58%, and…

A: Margin refers to the amount of money that is borrowed to finance the underlying transaction, It is…

Q: Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker .…

A: Interest amount will be computed by finding the leverage amount taken from the broker.

Q: Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 per…

A: ParticularAmountNo. of Shares short sell $  1,000.00Price at Short Sell $       85.00Initial…

Q: On January 1, you bought 100 shares of ABD stock for $19/share with funds that you borrowed at an…

A: volume_upRate of Return on InvestmentGiven:Purchase price per share: $19Number of shares:…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: You purchase 240 shares of stock at $37.60 per share. Several months later you sell the shares at…

A: given information  purchased price = 37.60 selling price = 33.10 total number of shares = 240 shares…

Q: 8 Months ago you bought 500 shares of stock on margin of $82. The initial margin requirement on the…

A: We need to calculate the initial investment. This is given by: Initial investment = 500 × $ 82 × .60…

Q: Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend…

A: Gain on Sale = Sale Price of Shares - Cost of acquisition of Share - Transaction cost

Q: The Dahlia Flower Company has earnings of $1.60 per share. a. If the benchmark PE for the company is…

A: PE ratio = Stock price/ Earning per shareSo, stock price = Earning per share*PE ratio

Q: In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively. You sell…

A: Transaction costs are costs brought about when buying or offering budgetary resources, such as…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: Jersey Medical earns $10.00 a share, sells for $100, and pays a $4 per share dividend. The stock is…

A: Stock split means to increase the number of the company's outstanding shares and decrease the value…

Q: In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months…

A: The total return on this trade in dollar amount will be the sum of dividend paid and the price…

Q: . You decided to buy 100 shares of ABM Corp. Currently, it is trading at $43 per share. You think…

A: solution concept placing a limit order               When we place the limit order for the purchase…