You buy a put option for $10 with a strike of $100. At maturity the price...
You buy a put option for $10 with a strike of $100. At maturity the price of the underlying is $95.What is your profit or loss?
Homework Answers
Profit/Loss for long put = [Max{(Strike Price - Stock Price),0}] - Premium Paid
= [Max{($100 - $95),0}] - $10
= $5 - $10 = -$5
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You buy a put option for $10 with a strike of $100. At maturity
the price...
You buy 100 CJC put option contracts with a strike price of 92 at a quoted...
You buy 100 CJC put option contracts with a strike price of 92 at a quoted price of $8. At option expiration, CJC sells for $83.80. What is your net profit on the transaction?
The price of a call option with a strike of $100 is $10. The price of...
The price of a call option with a strike of $100 is $10. The price of a put option with a strike of $100 is $5. Interest rates are 0 and the current price of the underlying is $100. Can you make an arbitrage profit? If so how? Describe the trade and your pay offs in detail?
The price of a call option with a strike of $100 is $10. The price of...
The price of a call option with a strike of $100 is $10. The price of a put option with a strike of $100 is $5. Interest rates are 0 and the current price of the underlying is $100. Can you make an arbitrage profit? If so how? Describe the trade and your pay offs in detail?
The price of a call option with a strike of $100 is $10. The price of...
The price of a call option with a strike of $100 is $10. The price of a put option with a strike of $100 is $15. Interest rates are 0 and the current price of the underlying is $105. Can you make an arbitrage profit? If so how? Describe the trade and your pay offs in detail
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss?
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss? please show your work
1. You are the buyer of a put option which has a put premium of $2.30. The strike price is $83 and the underlying stock...
1. You are the buyer of a put option which has a put premium of $2.30. The strike price is $83 and the underlying stock price is $82.50. What is your profit or loss? a. Loss $230 b. Gain $50 c. Gain $230 d. Loss $180 e. None of the above. 2. You are the seller of a put option. The put premium is $5.50 and the exercise price is $105. If the underlying stock price is $110, what is...
A stock's current price is $72. A call option with 3-month maturity and strike price of...
A stock's current price is $72. A call option with 3-month maturity and strike price of $ 68 is trading for 6, while a put with the same strike and expiration is trading for $20. The risk free rate is 2%. How much arbitrage profit can you make by selling the put and purchasing a synthetic put? (Provide your answer rounded to two decimals.) You have purchased a put option for $ 11 three months ago. The option's strike price...
Question 7: 1. Both a call option and a put option are currently traded on stock...
Question 7:
1. Both a call option and a put option are currently traded on stock AXT. Both options have a strike price of $90 and maturity (T) of three months. The call premium (Co) is $2.75, the put premium (Po) is $4.12, and the underlying stock price (So) is $89.50. Assume that you trade one contract that has 100 shares when you calculate profit or loss. What will be your profit (or loss) if you take a long position...
1. A put option has a strike price of $4.78 and a premium of $0.01. At...
1. A put option has a strike price of $4.78 and a premium of $0.01. At expiration, the price of the underlying is $4.81. What is the breakeven price of the option? Ignoring the premium, what is the profit or loss to the option holder at expiration.
Question 7:
1. Both a call option and a put option are currently traded on stock AXT. Both options have a strike price of $90 and maturity (T) of three months. The call premium (Co) is $2.75, the put premium (Po) is $4.12, and the underlying stock price (So) is $89.50. Assume that you trade one contract that has 100 shares when you calculate profit or loss. What will be your profit (or loss) if you take a long position...
1. A put option has a strike price of $4.78 and a premium of $0.01. At expiration, the price of the underlying is $4.81. What is the breakeven price of the option? Ignoring the premium, what is the profit or loss to the option holder at expiration.
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