Question

Return to question 6 You purchase 15 call option contracts with a strike price of $85 and a premium of $1.90. Assume the stock price at expiration is $91.45. 8.33 points a. What is your dollar profit? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Dollar profit b. What is your dollar profit if the stock price is $77.40? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) Answer is complete but not entirely correct. f the stock price is $77.4, the call worthlesssothe dollar profit is 143 is

0 0
Add a comment Improve this question Transcribed image text
Answer #1

amd aparium Call S 1.90) $914S Coll e Call apiam is Net 96.75 Cal - 2 8.S0 568. Call a is 68.22 .55 (68Call apt tock pice bacaua Striuck Call is dashlay ula haua To Coll apt te d0 et .5o 2 8 -5o LS.

Add a comment
Know the answer?
Add Answer to:
Return to question 6 You purchase 15 call option contracts with a strike price of $85...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You purchase 14 call option contracts with a strike price of $80 and a premium of...

    You purchase 14 call option contracts with a strike price of $80 and a premium of $1.80. Assume the stock price at expiration is $92.00. a. What is your dollar profit? (Do not round intermediate calculations.) Dollar profit   $    b. What is your dollar profit if the stock price is $77.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) If the stock price is $77.95, the call is worthless , so the...

  • You purchase 26 call option contracts with a strike price of $140 and a premium of...

    You purchase 26 call option contracts with a strike price of $140 and a premium of $4.35. Assume the stock price at expiration is $152.00. a. What is your dollar profit? (Do not round intermediate calculations.) b. What is your dollar profit if the stock price is $137.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.)

  • You purchase 17 call option contracts with a strike price of $95 and a premium of...

    You purchase 17 call option contracts with a strike price of $95 and a premium of $3.75. Assume the stock price at expiration is $102.46 a. What is your dollar profit? (Do not round intermediate calculations.) Dollar profit 63 b. What is your dollar profit if the stock price is $88.41? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) If the stock price is $88.41, the call is worthless so the dollar profit...

  • You purchase 14 call option contracts with a strike price of $80 and a premium of...

    You purchase 14 call option contracts with a strike price of $80 and a premium of $1.80. Assume the stock price at expiration is $92.00. a. What is your dollar profit? b. What is your dollar profit if the stock price is $77.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) f the stock price is $77.95, the call is , so the dollar profit is   

  • Suppose you write 40 call option contracts with a $40 strike. The premium is $3.03. Evaluate...

    Suppose you write 40 call option contracts with a $40 strike. The premium is $3.03. Evaluate your potential gains and losses at option expiration for stock prices of $30, $40, and $50. (Input all amounts as positive values. Do not round intermediate calculations.) At stock price of 30, the ____. is _____ At stock price of 40, the ____. is _____ At stock price of 50, the ____. is _____

  • Ou sell (write) four call option contracts with a strike price of $27.50 and an option remium of ...

    32 33 please!!! ou sell (write) four call option contracts with a strike price of $27.50 and an option remium of $0.66. At expiration, the stock was selling for $26.90 a share. What is the total profit or loss on your option position? 2) You purchased three put option contracts with a strike price of $30 and a premium of $o.90 At expiration, the stock was selling for $24.80 a share. What is the total profit or loss on your...

  • 4. A call option currently sells for $7.75. It has a strike price of $85 and...

    4. A call option currently sells for $7.75. It has a strike price of $85 and seven months to maturity. A put with the same strike and expiration date sells for $6.00. If the risk-free interest rate is 3.2 percent, what is the current stock price? 5. Suppose you buy one SPX call option contract with a strike of 1300. At maturity, the S&P 500 Index is at 1321. What is your net gain or loss if the premium you...

  • (5 pts)  Suppose I sell 10 CALL option contracts on Coke with a strike price of $47.00...

    (5 pts)  Suppose I sell 10 CALL option contracts on Coke with a strike price of $47.00 and an option premium of 26 cents. The stock price is $45.83 when I sell the call and moves between $43 and $46.25 during the time up to expiration. Assuming that I do not own any Coke stock, what is my profit or loss on this? (5 pts) Using the date in question 11, what would my profit or loss be if the price...

  • (5 pts) Suppose I sell 5 PUT option contracts on Home Depot with a strike price...

    (5 pts) Suppose I sell 5 PUT option contracts on Home Depot with a strike price of $180.00 and an option premium of $19. The stock price is $209.45 when I sell the put and moves between $199.24 and $215.43 during the time up to expiration. What is my maximum profit or loss on this? (5 pts) Using the date in question 13, what would my maximum profit or loss be if the price of Home Depot stock moved from...

  • In mid-May, there are two outstanding call option contracts available on the stock of ARB Co.: Call # Exercise Price...

    In mid-May, there are two outstanding call option contracts available on the stock of ARB Co.: Call # Exercise Price Expiration Date Market Price 1 $50 August 19 $8.40 2 60 August 19 3.34 A. Assuming that you form a portfolio consisting of one Call #1 held long and two Calls #2 held short, complete the following table showing your intermediate steps. In calculating net profit, be sure to include the net initial cost of the options. Do not round...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT