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the current price of a stock is $94, and three-month european call options with a strike price of $95 currently sell for $4.70

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Final answer:

Net profit from stock transactions is calculated by subtracting the total purchase cost and transaction fees from the total selling price. The question is specific to financial calculations and involves determining profits from the buying and selling of stocks, which includes transaction costs.

Step-by-step explanation:

Calculating Net Profit from Stock Transactions

To calculate the net profit from each stock transaction, you will need to consider the initial cost of purchasing the shares, the revenue from selling the shares at their current price, and the transaction fees charged by the stock company both when buying and selling.

Example Calculations:

Purchase: 1000 shares × $24.50 = $24,500

Sell: 1000 shares × $39.75 = $39,750

Total Transaction Fees: $9.99 (buying) + $9.99 (selling) = $19.98

Net Profit: $39,750 (selling price) – $24,500 (cost) – $19.98 (fees) = $15,230.02

This process can be applied similarly to transactions involving stocks from companies like Panda Express and Wal Mart.

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