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You have been researching a stock that you like, which is currently trading at $49.05 per...
(a) Imagine that you have placed a limit order to 100 shares of Sallisaw Tool at...
(a) Imagine that you have placed a limit order to 100 shares of Sallisaw Tool at a price of $38, although the stock is currently selling for $41. Discuss the consequences, if any, of each of the following situations. (i) The stock price drops to $39 per share two months before cancellation of the limit order. (ii) The stock price drops to $38 per share (iii) The minimum stock price achieved before cancellation of the limit order was $38.50. When...
QUE (a) Al Cromwell places a market order to buy a round lot of Thomas, Inc.,...
QUE (a) Al Cromwell places a market order to buy a round lot of Thomas, Inc., common stock, which is traded on the NYSE and is currently quoted at $50 per share. Ignoring brokerage commissions, determine how much money will Cromwell probably have to pay. If he had placed a market order to sell, how much money will he probably receive? Explain. (b) Imagine that you have placed a limit order to 100 shares of Sallisaw Tool at a price...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Mic...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $45.00? A. Gain of $71.00 B. Gain of $119.00 C. Gain of...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $50.00? A. Gain of $71.00 B. Gain of $171.00 C. Gain of...
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will...
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will be volatile in the next three months, and the price will change significantly. However, you do not know the direction of the change. Thus, you decide to enter into a long straddle position using 3 month options, buying both a put and a call contract struck at $73. The premium on both options is $2.4 per share. If at maturity, GoPro is trading at...
pls help 1. You sold JCP stock short at $80 per share. The stock price can...
pls help
1. You sold JCP stock short at $80 per share. The stock price can potentially fall but it can also rise. You can limit your maximum loss on this short position by placing a A. limit-sell order! B. limit-buy order! C. stop-buy order D. stop-sell order E. market order
A call option on a stock, with time to maturity of 2 months and strike price of $24.39, is currently trading at a premiu...
A call option on a stock, with time to maturity of 2 months and strike price of $24.39, is currently trading at a premium of $1.85 per share. If you buy options on 20,000 shares (200 contracts), and then at maturity the stock is trading at $22.78, what is your net profit from this position?
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.77. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $39.22 per share 2 months before cancellation of the limit order b. The stock price drops to S38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.59. When...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.92. Discuss the consequences, if any, of each of the following situations a. The stock price drops to $39.11 per share 2 months before cancellation of the limit order. b. The stock price drops to $38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.53. When...
(11 Suppose that Facebook stock is currently priced at $170 per share and you have bought...
(11 Suppose that Facebook stock is currently priced at $170 per share and you have bought a put option with the strike price at $150 per share. The option premium is $10. The intrinsic value of your option is A) -$10. B) $0. C) $10. D) $20. One share of General Electric stock is priced at $10 today. Both options below are on General Electric stock and expire in 3 months. Option A Option B Type Call option Put option...
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will be volatile in the next three months, and the price will change significantly. However, you do not know the direction of the change. Thus, you decide to enter into a long straddle position using 3 month options, buying both a put and a call contract struck at $73. The premium on both options is $2.4 per share. If at maturity, GoPro is trading at...
pls help
1. You sold JCP stock short at $80 per share. The stock price can potentially fall but it can also rise. You can limit your maximum loss on this short position by placing a A. limit-sell order! B. limit-buy order! C. stop-buy order D. stop-sell order E. market order
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.77. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $39.22 per share 2 months before cancellation of the limit order b. The stock price drops to S38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.59. When...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.92. Discuss the consequences, if any, of each of the following situations a. The stock price drops to $39.11 per share 2 months before cancellation of the limit order. b. The stock price drops to $38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.53. When...
(11 Suppose that Facebook stock is currently priced at $170 per share and you have bought a put option with the strike price at $150 per share. The option premium is $10. The intrinsic value of your option is A) -$10. B) $0. C) $10. D) $20. One share of General Electric stock is priced at $10 today. Both options below are on General Electric stock and expire in 3 months. Option A Option B Type Call option Put option...
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