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Open Buying a Call Stock Option Open Buying a Put Stock Option Number Strike Stock Call...

Open Buying a Call Stock Option Open Buying a Put Stock Option
Number Strike Stock Call Number Strike Stock Put
of Contracts Price Price Premium of Contracts Price Price Premium
1 36 35 1.25 1 36 35 1.45
Intrinsic Value Intrinsic Value
Time Value Time Value
Cost Cost
Close Close
Number Strike Stock Call Number Strike Stock Put
of Contracts Price Price Premium of Contracts Price Price Premium
1 36 40 4.25 1 36 40 0.05
Intrinsic Value Intrinsic Value
Time Value Time Value
Profit / Loss Trade Profit / Loss Trade
Profit / Loss Execute Profit / Loss Execute
Profit / Loss Expire Profit / Loss Expire
Open Buying a Call Stock Option Open Buying a Put Stock Option
Number Strike Stock Call Number Strike Stock Put
of Contracts Price Price Premium of Contracts Price Price Premium
2 40 45 5.25 2 40 45 0.25
Intrinsic Value Intrinsic Value
Time Value Time Value
Cost Cost
Close Close
Number Strike Stock Call Number Strike Stock Put
of Contracts Price Price Premium of Contracts Price Price Premium
2 40 35 0.25 2 40 35 5.25
Intrinsic Value Intrinsic Value
Time Value Time Value
Profit / Loss Trade Profit / Loss Trade
Profit / Loss Execute Profit / Loss Execute
Profit / Loss Expire Profit / Loss Expire
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Answer #1

1 Open Buying a Call stock option Open Buying a Call stock option No. of Contracts No. of Contracts Strike Price Stock Price Call Premium Strike Pric Stock Pric Call Premjum 35 4 Intrinic Value 5 Time Value 6 Cost Intrinic Value Time Value 1.25 0.45 1.45 1.25 No. of Contracts Strike Price Stock Price Call Premium No. of Contracts Strike Pric Stock Pric Call Premjum 36 4.25 36 0.05 9 Intrinic Value 10 Time Value 11 Profit/loss trade 12 Profit/loss execution 13 Profit/loss expire 14 Intrinic Value Time Value Profit/loss trade Profit/loss execution Profit/loss expire 0.25 0.05 Loss trade After paying a premium of 4.25, on expiry,option buyer will be in net loss of.25 wont be executed/exercised 0.25 0.05 No. of Contracts No. of Contracts Strike Price Stock Price Call Premium 5.25 Strike Pric Stock Pric Call Premum 0.25! Intrinic Value Time Value 16 Intrinic Value 17 Time Value 18 Cost 19 0.25 0.25 10.5 0.25 No. of Contracts Strike Price Stock Price Call Premium No. of Contracts Strike Pric Stock Pric Call Premjum 35 0.25 35 21 Intrinic Value 22 Time Value 23 Profit/loss trade 24 Profit/loss execution 25 Profit/loss expire Intrinic Value Time Value Profit/loss trade Profit/loss execution Profit/loss expire 0.25 0.25 loss Loss trade wont be executed/exercised 0.25

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