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

Question

Question

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 dollar profit is

$ _______

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

ven Sthike pica aince expiration 9a-80x19 168 168-asa ixly) 3192 Jince te Sta de prce ta

Add a comment

Answer 2

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? 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
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 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.)

Return to question 6 You purchase 15 call option contracts with a strike price of $85...

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...
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 _____
You purchase 5 put option contracts with a premium of $3.86 and an exercise price of...

You purchase 5 put option contracts with a premium of $3.86 and an exercise price of $80. If the stock price at expiration of the contracts is $86.27, what is your profit?

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...
Assume that you have shorted a call option on Intuit stock with a strike price of...

Assume that you have shorted a call option on Intuit stock with a strike price of $40; when you originally sold (wrote) the option, you received $5. The option will expire in exactly three months' time. a. If the stock is trading at $55 in three months, what will your payoff be? What will your profit be? b. If the stock is trading at $35 in three months, what will your payoff be? What will your profit be? c. Draw...
You own 10 put option contracts on Dollar General stock. You paid an option premium of...

You own 10 put option contracts on Dollar General stock. You paid an option premium of $1.80 for a strike price of $50.50. On the option expiration date, the stock was selling for $48.25 a share. What is your percentage return?

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...

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

Homework Answers

Add Answer to:
You purchase 14 call option contracts with a strike price of $80 and a premium of...

Post as a guest

Earn Coins