H&M Price H&M is known for its stylish clothing for low prices. H&M’s price strategy is based on their customers wants and needs. Low prices‚ high fashion! H&M uses physiological prices which is a very smart strategy that always works. This strategy means that the price of a shirt isn’t 20 euro’s but 19‚90. It seems much cheaper but the difference is just 10 cents. Normally at H&M you will not see clothes with a price higher than 80 euro’s. but sometimes a designer designs clothes for h&m for a
Premium Pricing Price Clothing
FISHER-PRICE CASE ANALYSIS I. PROBLEM The main problem facing Jack Asthalter‚ Fisher-Price’s marketing vice president is whether or not to move forward with the production of a new ATV Explorer toy. The extensive market research that Fisher-Price performed with children and their parents was very positive in favor of producing the ATV Explorer. Unfortunately‚ the production costs were going to exceed initial estimates of $12.00 retail and instead require a wholesale price of $9.20 per
Premium Marketing Price
Week8 Ch 20: 5‚11‚15 5. Turn back to figure 20.1‚ which lists prices of various IBM options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following February expiration options‚ assuming that the stock price on the expiration date is $195. a. Call option‚ X = $190. b. Put option‚ X =$190. c. Call option‚ X = $195. d. Put option‚ X =$195. e. Call option‚ X = $200. f. Put option‚ X =$200. St =$195 COST PAYOFF PROFIT CALL 6.75 195-190=5 -1
Free Call option Strike price Put option
contracts instead of forward contracts? 2. What advantage do currency options offer that are not available with futures or forward contracts? 3. What are some disadvantages of currency option contracts? 4. Why do currency futures prices change over time? 5. Why do currency options prices change over time? 6. Set up several scenarios‚ and for each scenario‚ ask students to determine whether it would be better for the firm to purchase (or sell) forward contracts‚ futures contracts‚ call option contracts‚ or
Premium Futures contract Option United States dollar
contract‚ the strike of the call options is $21.5‚ and capped at $39.5. Thus this is a combination of a call option at $21.5 and a put option at $39.5 two options‚ and the value is the difference between the two. Based on the Balck-scholes call formula‚ among which‚ ； 1）The price of call option with the strike price of $21.5: S=$20;K=$21.5;r=5.5%;T-t=0.5yrs;σ=75% 2）The price of put option with the strike price of $39.5: S=$20;K=$39.5;r=5.5%;T-t=0.5yrs;σ=75% The price of the capped
Premium Option Call option Put option
of out-of-the-money calls and puts of the same underlying security‚ strike price and expiration date while owning the underlying stock. Covered Combination Construction Long 100 Shares Sell 1 OTM Call Sell 1 OTM Put Limited Profit Potential Maximum gain for the covered combination is achieved when the underlying stock price on expiration date is trading at or above the strike price of the call options sold. This is the price where the trader’s long stock gets called away for a profit plus he
Premium Call option Option Strike price
• What is credit default swap (CDS)? What is a credit derivative index? Credit Default Swap: It is an OTC Credit Derivative. (Provides protection against specific credit events) [pic] ▪ [pic] [pic] Total return swap: (provides protection against loss of value irrespective of cause). Two parties enter an agreement whereby they swap periodic payment over the specified life of the agreement. One party makes payments based upon the total return—coupons
Premium Bond Call option Option
8.3.)An investor sells a European call option with strike price of K and maturity T and buys a put with the same strike price and maturity. Describe the investor’s position. The payoff to the investor is - max (ST - K ‚ 0) + max(K - ST‚ 0) This is K- ST in all circumstances. The investor’s position is the same as a short position in a forward contract with delivery price K. 8 .4.)Explain why brokers require margins when clients write options but not when they buy options? When an investor
Premium Call option Put option Option
Exercise (strike) price 1. A stock has an exercise (strike) price of $40. a. If the stock price goes to $41.50‚ is the exchange likely to add a new strike price? b. If the stock price goes to $42.75 is the exchange likely to add a new strike price? 15-1. a) No. For stocks over $25‚ the normal interval is $5‚ with a new strike price added at the halfway point or $42.50 (between $40 and $45). b) Yes‚ the stock price has equaled or exceeded the halfway point of $42.50 Option trading prices 2. Look
Free Call option Strike price Option
HW#4 1. A portfolio is currently worth $10 million and has a beta of 1.0. The S&P 100 is currently standing at 800. Explain how a put option on the S&P 100 with a strike price of 700 can be used to provide portfolio insurance. 2. “Once we know how to value options on a stock paying a dividend yield‚ we know how to value options on stock indices and currencies.” Explain this statement. 3. Explain how corporations can use range-forward contracts to hedge their foreign exchange risk. 4
Premium Call option Put option Option