ZuoTi.Pro
Question

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?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1


Solution: 25.00% Percentage return (50.5-48.25-1.8)/1.8

0 0
Add a comment
Know the answer?
Add Answer to:
You own 10 put option contracts on Dollar General stock. You paid an option premium of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • John purchased 3 put option contracts at an option premium of $0.95 and a strike price...

    John purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40. At expiration, the stock price was $42.25 per share. What is his percentage return? Please show work

  • 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 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 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?

  • You sell a put option on one share of stock. The put has a premium of...

    You sell a put option on one share of stock. The put has a premium of $4 and a strike/exercise price of $98. The stock currently has a price of $101.20 per share. On the day that the option expires, the stock is selling for $94. What ends up being your net payoff on this position?

  • 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...

  • (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...

  • You buy a put option on 100 shares of stock. The put has a premium (per...

    You buy a put option on 100 shares of stock. The put has a premium (per share) of $0.42 and a strike/exercise price of $5.10. The stock currently has a price of $5.63 per share. On the day that the option expires, the stock is selling for $5.02. What ends up being your net payoff on this position?

  • Use the option quote information shown here to answer the questions that follow. The stock is...

    Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $114, and the size of each contract is 100 shares. a. Suppose you buy 10 contracts of the February 110 call option. How much will you pay, ignoring commissions? b-1. Suppose you buy 10 contracts of the February 110 call option and also suppose that Macrosoft stock is selling for $140 per share on the expiration date. How much is your...

  • 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.)

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