E connect Yousef Sherhan FIN4710 Advanced Investment Analysis Summer 2018 FINANCE
Homework #4 instructions help Question 2 (of 5) | Save & Exit | | Submit value 10.00 points You
purchase one Facebook October 170 put contract for a premium of $9.25. What is your
maximum possible profit? Assume each contract is for 100 units. Potential profit References
eBook & Resources Worksheet Learning Objective: 15-01 Calculate the profit to various option
positions as a function of ultimate security prices.
Solution
Q2)
The maximum profit could only be achieved if the stock price becomes 0. In such case since it is
a put contract, the whole contract price excluding the premium amount would be the per-unit
profit; then it is to be multiplied by the number of units to get the total amount of profit.
Required profit = Per unit profit × Number of units
= (170 – 9.25) × 100
= $160.75 × 100
= $16,075 (Answer)
Q5)
Here the purchase price is $51. Now there are two selling price – one is $48 and the other is $56.
If it is sold on $56 there would be a profit, since the selling price is higher than purchase price; if
it is sold on $48 there would be a loss, since the selling price is lower than purchase price.
Maxi profit = 56 – 51
= $5 (Answer)
Mini profit = 48 – 51
= $3 (Answer).
Excel has conditional formats for A. Data bars b. Color scales c.pdf
1. Excel has conditional formats for? A. Data bars b. Color scales c. All of the above d. Icon sets e.
Highlighting
Excel has conditional formats for? A. Data bars b. Color scales c. All of the above d. Icon sets e.
Highlighting
Solution
Ans. C. All of the above
Conditional Formatting (CF) is a tool that allows you to apply formats to a cell or range of cells,
and have that formatting change depending on the value of the cell or the value of a formula.
