Homework Answers
rate positively ..
| Ans 12 | correct answer is option :- | |||||
| b) in the money | ||||||
| Because strike price is lower than current stock price | ||||||
| Ans 13 | correct answer is option :- | |||||
| Maximum profit = | ||||||
| 120*100-100*10 | ||||||
| 11000 | ||||||
| ans is option c) | 11000 | |||||
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12. (2 points) A call option on Brocklehurst Corp. has an exercise price of $30. The...
25. You buy a call option on Boeing Corp with an exercise price of $40 and...
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer is A. The...
What is your maximum profit if you short one MBI March 120 put option for a...
What is your maximum profit if you short one MBI March 120 put option for a premium of $10? _________. Multiple Choice $11,000 $12,000 $120 $1,000
questions 25-28 please 25. You buy a call option on Boeing Corp with an exercise price...
questions 25-28 please
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer...
The potential gain for a holder of a naked call option on a stock is _________....
The potential gain for a holder of a naked call option on a stock is _________. Multiple Choice equal to the strike price plus the premium Incorrect larger with a higher strike price unlimited larger with a higher stock price A put option on Brocklehurst Corp. has an exercise price of $30. The current stock price of Brocklehurst Corp. is $32. The put option is _________. Multiple Choice at the money in the money Incorrect out of the money Not...
You can: - write an option 1: call option with an exercise price of PLN 100...
You can: - write an option 1: call option with an exercise price of PLN 100 and premium of PLN 5 - purchase an option 2: call option with an exercise price of PLN 140 and premium of PLN 5 - purchase an option 3: put option with an exercise price of PLN 100 and premium of PLN 3 Is an arbitrage possible? If yes, which options should be purchased in order to realize an arbitrage strategy?
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call...
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...
The current market price of a share of Disney stock is $30. If a call option...
The current market price of a share of Disney stock is $30. If a call option on this stock has a strike price of $35, the call is out of the money. is in the money. can be exercised profitably. is out of the money and can be exercised profitably. is in the money and can be exercised profitably. The maximum loss for a writer of a put option on a stock is unlimited. equal to the exercise price. equal...
In expectation of increased price volatility, you purchased a at-the-money call option and at the same time bought a at-the-money put option with common exercise prices of $15. Option premium at $3 ea...
In expectation of increased price volatility, you purchased a at-the-money call option and at the same time bought a at-the-money put option with common exercise prices of $15. Option premium at $3 each. Your strategy is known as a_____? Please draw out the payoff-profile of this strategy and clearly state all key info. What is the maximum $ would you lose with this strategy?
6. A call option has an exercise price of $45 and a premium of $4. If...
6. A call option has an exercise price of $45 and a premium of $4. If the price of the underlying stock is $60, the total payoff of the option is ____? 7. A put option has an exercise price of $20 and a premium of $2. If the price of the underlying stock is $11, what of the total payoff of the option? 8. You write a call option with an exercise price of $67 and a premium of...
Suppose you construct the following European option trades on Apple stock: write a put option with exercise price $32 and premium $2.86, and write a call option with exercise price $32 and premium $3....
Suppose you construct the following European option trades on Apple stock: write a put option with exercise price $32 and premium $2.86, and write a call option with exercise price $32 and premium $3.51. What is your maximum dollar net profit, per share?
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer is A. The...
questions 25-28 please
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer...
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...
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