You purchase 200 shares of a stock at a price of $70 per share. You purchase 200 call options on the stock with exercise price of $72 and a call premium of $5.75 per call option. You also write (sell) 300 put options on the same stock with exercise price of $68 and put premium of $2.87 per put option. All the options expire on the same date. Calculate the profit on your entire strategy (portfolio) at the expiration of the contracts if the Stock price at that time is $77.90. (Assume you sell all your shares the date that the options expire.) a. $2,471.00
b. -$499.00
c. $174.00
d. $2,190.00
e. $1830.00

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police

answer; customers within the organization