Graph profit and breakeven point for price of Apple stock
Not what you're looking for?
The following option price information can be used to answer questions. Assume interest rates are 2%.
Apple (AAPL) Stock Price $330.67
Option Prices (7-months until expiration)
K Put Call
300 22.05 22.05
330 34.90 36.50
360 51.60 23.35
1. Graph the Profit of the following positions at expiration as a function of stock price. Compute the maximum profit, loss and breakeven point of each.
a. A long stock purchase.
b. A long stock and a short put (K=300).
c. A long stock and a short call (K= 360)
2. Compute percentage gain or loss for each of the positions in #1 if the stock price in 7 months is $250. Repeat for a price of $400.
Purchase this Solution
Solution Summary
This solution provides assistance in graphing Apple's profit and breakeven point.
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)