In: Finance

An investor buys 50 shares of BOA at $22.6 per share at the beginning of 2017, buys another 80 shares at $29.75 per share at the beginning of 2018, sells 30 shares at $24.08 per share at the beginning of 2019, and sells all 100 remaining shares at $35.35 per share at the beginning of 2020. BOA pays $0.39 per share of dividends at the end of 2017, pays $0.54 per share of dividends at the end of 2018, and pays $0.66 per share of dividends at the end of 2019. What is the dollar-weighted rate of return?

A. 10.5%

B. 10.4%

C.11.6%

D. 11.3%

Investor buys 200 shares of stock at $27.25 per share. Investor
sells the stock after one year. 1. What is the dollar amount of
gain and the percent of return if the stock is sold for $32.60 per
share? How much does the yield percentage increase to if the stock
received a per share dividend of $1.15 during the year? 2. What is
the dollar amount of loss and percentage of return if the stock
received a per share dividend...

An investor buys 400 shares of stock selling at $70 per share
using a margin of 40%. The stock pays annual dividends of $2 per
share. A margin loan can be obtained at annual interest cost of 6%.
Determine what return on invested capital the investor will realize
if the price of the stock increases to $94 within twelve
months.
A. 33.54%
B. 34.29%
C. 37.14%
D. 55.90%
E. 83.86%

An investor buys 1,000 shares of Tundra Enterprises, Inc. at $45
1/2 per share. A year later, he sells his entire position at $53
1/4. The firm paid a dividend of $0.75 per share during this
period. Based on this information, calculate the investor's
realized return

An investor buys some shares of ABC for $20 at the beginning of
the year. During the year he receives $0.50 in dividends, and then
sells the shares for $21 at the end of the year. What is the total
return on this investment?

An investor buys three shares of XYZ at the beginning of 2002
for $100 apiece. After one year, the share price has increased to
$110 and he receives a dividend per share of $4. Right after
receiving the dividend, he buys two additional shares at $110.
After another year, the share price has dropped to $90, but the
investor still receives a dividend per share of $4. Right after
receiving the dividend, he sells one share at $90. After another...

An investor buys 100 shares of a stock, shorts 50 call options
on the stock with strike price of $80 and buys 50 put options on
the stock with strike price of $40. All options are one-year
European options. Draw a diagram illustrating the value of the
investor’s portfolio as a function of the stock price after one
year.

In December 2017, an American investor buys 1,000 shares in a
Mexican company at a price of 500 pesos each. The share does not
pay any dividend. A year later she sells the shares for 550 pesos
each. Assume the exchange rate when she buys the stock is 19.131.
Suppose that the exchange rate at the time of sale is 20 pesos =
$1, answer the following requirements.
a. How many dollars does she invest?
(Do not round intermediate calculations....

An investor to buys Schlumberger Limited (SLB) share at $15 per
share using $90,000 of his own money and a margin loan.
a. With an initial margin of 50% what is the maximum number of
shares he can buy?
b. If the maintenance margin is 20%, at what price will he get a
margin call? And how much money would he need to add?
c. If SLB stock price rises to $18, can the investor withdraw
fund from the account?...

An investor buys a stock for $40 per share and simultaneously
sells a call option on the stock with an exercise price of $42 for
a premium of $3 per share. Ignoring the dividends and transaction
costs, what is the maximum profit the writer of this covered call
can earn if the position is held to expiration?

Acme Corp. is currently trading at $52 per share. Assume the
investor buys a put with a strike price of $50 for $1.08 and buys a
call for $4.57 with a strike price of $50.
(a) (4 pts) Draw the profit and loss diagram for this strategy
(just the options) as a function of the stock price at expiration.
In that graph label BOTH the maximum loss and maximum gain
possible.
(b) (4 pts) Both options expire in one year...

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