Question
In: Finance
You purchase apple stock today at a price of $200. After a year it has declined...
- You purchase apple stock today at a price of $200. After a year
it has declined to $150 but paid a $20 dividend, what is the annual
return on your purchase?
- -25%
- -15%
- 15%
- 25%
- 47%
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You purchase 200 shares for $70 a share ($14,000), and after a year the price falls...
You purchase 200 shares for $70 a share ($14,000), and after a
year the price falls to $65. Calculate the percentage return on
your investment if you bought the stock on margin and the margin
requirement was (ignore commissions, dividends, and interest
expense):
25 percent.
40 percent.
75 percent.
Tom bought 100 shares of Apple stock at $200 each sixteen months ago, and today Apple...
Tom bought 100 shares of Apple stock at $200 each sixteen months
ago, and today Apple stock price is $220. Apple just paid a
dividend of $0.75 per share. Tom faces an ordinary income tax rate
of 35% and capital gain/qualified dividend tax rate of 18.8%.
How much tax does Tom owe to the IRS on this dividend income?
$14.1
$26.25
$75
$200
Today, the stock of Apple(APPL) is quoted as: BID $329 ASK $330 You purchase 300 shares...
Today, the stock of Apple(APPL) is quoted as: BID $329 ASK
$330
You purchase 300 shares of APPL. You pay commissions of 0.1% of the
purchase amount
3 Months Later, the stock of Apple (APPL) is quoted as: BID $329
ASK $330 You sell your 200 shares of APPL. You pay commissions of
$60 per trade.
What are your total transactions costs in this “round trip?
If the price for Apple stock is $44 today, and the dividend next period is $3.50...
If the price for Apple stock is $44 today, and the dividend next
period is $3.50 and the price next period is expected to be $36,
what is the capital gains yield?
A) 18.182%
B) - 18.182%
C) 7.954%
D) 22.22%
E) - 10.228%
Assume you purchase 200 shares of Apple at $350 per share, but you are worried that...
Assume you purchase 200 shares of Apple at $350 per share, but
you are worried that it may fall in price, so you wish to hedge
part of your position by writing a 100 share option. The option has
a strike price of $300 and a premium of $50. If at that the time of
expiration, the stock is selling at the following prices ($200,
$300, $400) what will be your overall gain or loss? What about the
person who...
A stock sells today for $130. The price of the stock in a year is expected...
A stock sells today for $130. The price of the stock in a year
is expected to be $140. The annual volatility of the stock is
30%.
a. Calculate the probability that in six years the stock will sell
for more than $150.
b. Calculate the probability that in six years the stock will sell
for less than $115.
c. Calculate the probability that in six years the stock will sell
for a price between $120 and $160.
d. You...
YBM’s stock price S is $102 today. — After six months, the stock price can either...
YBM’s stock price S is $102 today. — After six months, the stock
price can either go up to $115.63212672, or go down to
$93.52995844. — Options mature after T = 6 months and have an
exercise price of K = $105. — The continuously compounded risk-free
interest rate r is 5 percent per year. Given the above data,
suppose that a trader quotes a put price of $5. Then the arbitrage
profit that you can make today by trading...
YBM’s stock price S is $102 today. — After six months, the stock price can either...
YBM’s stock price S is $102 today. — After six months, the stock
price can either go up to $115.63212672, or go down to
$93.52995844. — Options mature after T = 6 months and have an
exercise price of K = $105. — The continuously compounded risk-free
interest rate r is 5 percent per year. Given the above data, the
hedge ratio and the put option’s value are given by:
Group of answer choices
0.5190 for the hedge ratio and...
YBM’s stock price S is $102 today. — After six months, the stock price can either...
YBM’s stock price S is $102 today. — After six months, the stock
price can either go up to $115.63212672, or go down to
$93.52995844. — Options mature after T = 6 months and have an
exercise price of K = $105. — The continuously compounded risk-free
interest rate r is 5 percent per year. Given the above data,
suppose that a trader quotes a call price of $6. Then the arbitrage
profit that you can make today by trading...
Suppose stock X has a price of $100 today. There are threepossible scenarios one year...
Suppose stock X has a price of $100 today. There are three
possible scenarios one year later as detailed below. Let R denote
the one-year return of stock X (today to one year later).Scenario 1 Probability 20%, Stock price $80,
Dividend $0Scenario 2 Probability 50%, Stock price $105,
Dividend $5Scenario 3 Probability 30%, Stock price $140,
Dividend $5Calculate: (a) R in each of these three scenarios, and(b) The volatility of R.
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