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b. A March $100,000 Treasury Bond put option with a strike price of 155-00 points has...
5. Suppose in May you purchase $100,000 face value of U.S. Treasury bonds for a price...
5. Suppose in May you purchase $100,000 face value of U.S. Treasury bonds for a price of $90,000. Suppose that the bond matures in 15 years but that you must sell them at the end of July (10 points). In the top row in the table below, report the gains or loss that you would incur for selling the a. bonds for each of the listed potential end-of-July selling prices for the bonds. b. In the middle row in the...
Solve B b) Call Option: March corn (5000 bushels). March Futures = $3.49 bushel. Option Strike...
Solve B
b) Call Option: March corn (5000 bushels). March Futures = $3.49 bushel. Option Strike Price: $3.40 per bushel. Option Premium: 18 cents per bushel. Q1. Graph the 2 profit/loss payoff curves in a) and b) below, assuming you purchased each of the options in a) and b). On the graph provide labels to show the strike price, breakeven price, premium, and when the option is in the money" versus "out of the money" etc. Label the graph carefully...
K>FP Q2. Please take care to give your answer in the correct units a. March Crude...
K>FP Q2. Please take care to give your answer in the correct units a. March Crude Oil put option with a strike price of $46.00 per barrel has a premium of $3.99 per barrel. The underlying futures price is $46.40 per barrel. One crude oil contract is $1000 barrel. The Intrinsic value is L($ per contract) ($/bbl) ($/bbl) The time value is ($ per contract) contract Show your work 16- 46.40 = 1.20 a Per 1000 - 3990 - TV-...
2 points Q3. A put premium for a strike price of ¥4690 yen is ¥251 yen...
2 points Q3. A put premium for a strike price of ¥4690 yen is ¥251 yen while and the underlying stock is currently priced at W4470. The time value for the put premium is greater than the intrinsic value. Your answer
1. A put option has a strike price of $4.78 and a premium of $0.01. At...
1. A put option has a strike price of $4.78 and a premium of $0.01. At expiration, the price of the underlying is $4.81. What is the breakeven price of the option? Ignoring the premium, what is the profit or loss to the option holder at expiration.
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss? please show your work
Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the...
Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the option premium is $0.02. At what exchange rate will the buyer of this put option break even? Grupo de opciones de respuesta $1.50 = €1.00 $1.48 = €1.00 $1.00 = €.667 $1.52 = €1.00
Long currency straddle Call option premium = $0.05/€, Put option premium = $0.05/€ Strike price =...
Long currency straddle Call option premium = $0.05/€, Put option premium = $0.05/€ Strike price = $1.10/€, Option contract size = €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium Spot exchange rate $1.00/€ $1.05/€ $1.10/€ $1.15/€ $1.20/€ $1.25/€ Long call option Exercise (N/Y) Holder’s net profit per unit Long put option Exercise (N/Y) Holder’s net profit per unit Net profit Net profit per unit (graph) Short currency straddle Call...
Buying a Put Option: A put option trades on Swingline that has a strike price of...
Buying a Put Option: A put option trades on Swingline that has a strike price of $10.85 and a premium of $1.00. Calcuate the net profit or loss from BUYING a PUT option on Swingline if at the time of expiration the price per share of Swingline is $10.30.
Buying a Put Option: A put option trades on Swingline that has a strike price of...
Buying a Put Option: A put option trades on Swingline that has a strike price of $10.95 and a premium of $1.20. Calcuate the net profit or loss from BUYING a PUT option on Swingline if at the time of expiration the price per share of Swingline is $9.80.
5. Suppose in May you purchase $100,000 face value of U.S. Treasury bonds for a price of $90,000. Suppose that the bond matures in 15 years but that you must sell them at the end of July (10 points). In the top row in the table below, report the gains or loss that you would incur for selling the a. bonds for each of the listed potential end-of-July selling prices for the bonds. b. In the middle row in the...
Solve B
b) Call Option: March corn (5000 bushels). March Futures = $3.49 bushel. Option Strike Price: $3.40 per bushel. Option Premium: 18 cents per bushel. Q1. Graph the 2 profit/loss payoff curves in a) and b) below, assuming you purchased each of the options in a) and b). On the graph provide labels to show the strike price, breakeven price, premium, and when the option is in the money" versus "out of the money" etc. Label the graph carefully...
K>FP Q2. Please take care to give your answer in the correct units a. March Crude Oil put option with a strike price of $46.00 per barrel has a premium of $3.99 per barrel. The underlying futures price is $46.40 per barrel. One crude oil contract is $1000 barrel. The Intrinsic value is L($ per contract) ($/bbl) ($/bbl) The time value is ($ per contract) contract Show your work 16- 46.40 = 1.20 a Per 1000 - 3990 - TV-...
2 points Q3. A put premium for a strike price of ¥4690 yen is ¥251 yen while and the underlying stock is currently priced at W4470. The time value for the put premium is greater than the intrinsic value. Your answer
1. A put option has a strike price of $4.78 and a premium of $0.01. At expiration, the price of the underlying is $4.81. What is the breakeven price of the option? Ignoring the premium, what is the profit or loss to the option holder at expiration.
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