Strike Price 7.00 7.00
Option premium 0.06 0.06
Lot size 3700 3700
Current price 6.50 8.00
Cost 222 222
Payoff 1850 0
Profit 1628 -222
Rate of return, R 733.33% -100.00%
Problem 3-16 Using Options Quotations (LO4, CFA4) Use the following quotes for JCPenney stock options: n...
Use the following quotes for JCPenney stock options:
Assume you purchased the right to sell 3,700 shares of JCPenney
stock in November 2015 at a strike price of $7.00 per share.
Suppose the stock sells for $6.50 per share immediately before your
options’ expiration. What is the rate of return on your investment?
What is your rate of return if the stock sells for $8.00 per share?
Assume your holding period for this investment is exactly three
months. (A negative...
Use the following quotes for JCPenney stock options: November 27, 2015 In The Money List Straddle Lookup Option Calls Strike Fiter Contract Name Bid Implied Last Ask Change %Change Volume Open Interest Volatility 8.00 1.62 1.89 0.00 0.00% 20 56.45% 9.00 0.98 0.00% 51.95% 9.50 0.74 1.79 1.00 0.69 0.44 0.26 0.00% JCP151127C00008000 JCP151127C00009000 JCP151127C00009500 JCP151127C00010000 JCP151127C00010500 JCP151127C00011000 50.00% 10.00 1.10 0.78 0.48 0.29 0.18 0.00 0.00 0.00 0.03 -0.01 0.00% 0.40 0.28 0.16 45.12% 10.50 12.00% 43.75% 11.00 0.15...
November 27, 2015 h The Money Straddle Lookup Option Strike Contract Name Fitter 8.00 9.00 9.50 10.00 10.50 11.00 JCP151127C00008000 JCP151127C00009000 0.98 JCP151127C00009500 0.74 JCP151127C00010000 JCP151127C00010500 0.28 JCP151127C00011000 1.79 1.00 0.69 044 0.26 0.15 1.89 1.10 0.78 0.48 0.29 0.18 0.00 0.00 0.00 0.00 0.03 0.01 000% 0.00% 000% 000% 1200% -5 88% 12 20 56.45% 51.95% 50.00% 45.12% 43.75% 44 34% 1.62 13 24 19 51 50 0.40 105 0.16 Strike Contract Name Fiter 7.00 8.50 9.00 9.50 JCP151127P00007000...
November 27, 2015 h The Money Straddle Lookup Option Strike Contract Name 8.00 9.00 9.50 10.00 10.50 11.00 JCP151127C00008000 1 JCP151127C00009000 0.98 JCP151127C00009500 0 ЈСР151127С00010000 JCP151127C00010500 0.28 JCP151127C00011000 79 100 0.69 0.44 0.26 0.15 1.89 1.10 0.78 0.48 0.29 0.18 0.00 0.00 0.00 0.00 0.03 0.01 000% 0.00% 000% 000% 1200% -5.88% 56 45% 51.95% 50 00% 45.12% 43.75% 44.34% 1.62 0.74 13 24 19 51 0.40 105 0.16 41 Strike Contract Name 7.00 8.50 9.00 9.50 JCP151127P00007000 0.06 JCP151127P00008500...