Today's price of three traded call options on the stock BackBay, all expiring in one month, are as follows: Strike Price Option Price
$50 $7.50
$60 $3
$70 $1.50

You are considering buying a spread consisting of the following positions:

Buy 1 call at strike price of $50
Sell (write) 2 calls at strike price of $60
Buy 1 call at strike price of $70.

Assume the one-month interest rate is 0%.

Required:
a. Plot the payoff of your total position for different values of thestock price on the maturity date.
b. What is the dollar investment required to establish the spread?
c. For what stock prices on the maturity date will you be making anoverall profit?

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

What is free trade? a. trade that is not subject to taxes or fees b. trade that governments do not interfere with c. trade with a high level of government regulation d. trade between states in the u. s. b

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)