By entering into this options strategy, explain whether the fund manager will exercise the option if the spot price is above or below the exercise price.

Wesfarmers shares currently trade at $43.00. A fund manager is holding a large number of Wesfarmers shares in an investment portfolio and wishes to protect the value of the investment. The manager buys a long put option with an exercise price of $42.50 per share and pays a premium of $1.30 per share.

(a) By entering into this options strategy, explain whether the fund manager will exercise the option if the spot price is above or below the exercise price.

(b) Calculate the break-even price for the long put position.

(c) Draw a fully labelled diagram of the long put and the short put positions. (LO 20.2)

find the cost of your paper

You work for a company that develops and markets crew planning and optimization software and provides training and consulting in this area for the airline industry.

You work for a company that develops and markets crew planning and optimization software and provides training and consulting in this area for the airline industry. Currently, the firm is….

How would education for sustainable development and agriculture affect Peterborough transit and Peterborough Farmers’ Market.

Following a critical analysis of the data, two themes emerged: (i) education for sustainable development; and (ii) sustainable agriculture. The theme of Education for Sustainable Development (ESD) has been presented….

Are there any productivity concerns with allowing employees to use their personal devices at work?

When Saman Rajaee resigned from his sales position at Design Tech Homes in Texas, he wasn’t prepared for the next move the company made.89 He used his personal iPhone to….