Johanna places a combination trade as follows: she buys one share of VanHoutte long for $10.50...
Johanna places a combination trade as follows: she buys one share of VanHoutte long for $10.50 and at the same time she buys a call on VanHoutte that has an exercise price of $10.00 and a premium of $1.80. What is the profit or loss on the TWO trades COMBINED if at the time of expiration of the call option VanHoutte is trading at $12.50 per share? Assume that she gets out of her long position at the same time her option expires.
Homework Answers
the profit on the TWO trades COMBINED= $2.70
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Johanna places a combination trade as follows: she buys one
share of VanHoutte long for $10.50...
johanna places a combination trade as follows: she buys one share of Vanhoutte long for $10.80...
johanna places a combination trade as follows: she buys one share
of Vanhoutte long for $10.80 and at the same she buys a call ok
Vanhoutte that has an exercise price of $10.30 and a premium of
$1.60. What is the profit or loss on the tw trades COMBINED if at
the time of expiration of the call option Vanhoutte is trading at
$12.50 per share? Assume that she gets out of her long positiom at
the same time her...
Laverne buys a call option on XOM with a strike price of $90.00. XOM is already...
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You have taken a long position in a call option on IBM common stock. The option...
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You have taken a long position in a call option on IBM common stock. The option...
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1) A call option is priced at $7 with an exercise price of $100 and an...
1) A call option is priced at $7 with an exercise price of $100 and an underlying stock price of $98. If the stock price at expiry is $102 determine the following: o Option value for a long position o Profit for a long position 2) A put option is priced at $4 with an exercise price of $60 and an underlying price of $62. Determine the following: o Option value for a long position if the stock price at...
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Learn Corp. (Ticker: LC), an education technology company, is considered to be one of the least...
Learn Corp. (Ticker: LC), an education technology company, is considered to be one of the least risky companies in the education sector. Investors trade call options for Leam Corp., whose stock is currently trading at $50.00. Suppose you are interested in buying a call option with a strike price of $40.00 that expires in 6 months. (Assume that you get the option for free!) Based on speculations and probability analysis, you compute and collect the following information for your price...
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johanna places a combination trade as follows: she buys one share
of Vanhoutte long for $10.80 and at the same she buys a call ok
Vanhoutte that has an exercise price of $10.30 and a premium of
$1.60. What is the profit or loss on the tw trades COMBINED if at
the time of expiration of the call option Vanhoutte is trading at
$12.50 per share? Assume that she gets out of her long positiom at
the same time her...
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Learn Corp. (Ticker: LC), an education technology company, is considered to be one of the least risky companies in the education sector. Investors trade call options for Leam Corp., whose stock is currently trading at $50.00. Suppose you are interested in buying a call option with a strike price of $40.00 that expires in 6 months. (Assume that you get the option for free!) Based on speculations and probability analysis, you compute and collect the following information for your price...
Now let's say you believe EFG stock will increase in price of $50 share. so you decide to purchase a lune Call option for 100 shares for a 30 day time limit. Assume that I call option contract equals to 100 shares and the call premium per share is $2/share. (6 points total) a) Are you the long call or short call option? are you the buyer or seller? b) How much will you spend for the entire call option...
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