Question

lo another question will this response Question 12 From the perspective of the seller of a put option sold on 662,000. the st
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Breakeven price for a seller of put option = option strike price - premium

premium per euro = total premium / contract size = $1,240 / 62,000 = $0.02

Breakeven price for a seller of put option = $1.53 - $0.02

Breakeven price for a seller of put option = $1.51

Add a comment
Know the answer?
Add Answer to:
lo another question will this response Question 12 From the perspective of the seller of a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Question 34 2.5 pts Questions 31-34 are based on the following information: A European call option...

    Question 34 2.5 pts Questions 31-34 are based on the following information: A European call option is written on £62,500. The strike price is $1.55/E, and the option premium is $1,875. At what exchange rate does the trader start to lose money? Hint: It does not matter whether the trader is the buyer or seller. This looks for the breakeven price of the call option. 豊$1.52/£ $1.55/E $1.58/ $1.61/£

  • L> Moving to another question will save this response Question 9 of 302і Question 9 5...

    L> Moving to another question will save this response Question 9 of 302і Question 9 5 points Save Answ Currencies-U.S. dollar foreign-exchange rates. Country/currencyin USS Chinese Yuan Indian Rupee Euro 0.1466 0.0201 1.3265 6.8213 49.7512 0.7539 Suppose a Big Mac costs $3.27 in Boston, and $2.69 in Paris. In this circumstance, what can we say is TRUE? o a. Purchasing Power Parity holds, and Big Macs are relatively expensive in Boston. O b. Purchasing Power Parity does not hold, and...

  • Moving to another question will save this response. Question 1 of 4 Question 1 10 points...

    Moving to another question will save this response. Question 1 of 4 Question 1 10 points A company purchased a quality control system for $39.489 which requires $7,660 per year maintenance fees for the first 5 years, after which the maintenance fees will increase by 12% per year for the upcoming 7 years Determine the equivalent total present worth value of preached system during the 12 years operation at 15% per year Moving to another question will save this response....

  • L Moving to another question will save this response. Question 7 Regent Plumbing Company provides plumbing...

    L Moving to another question will save this response. Question 7 Regent Plumbing Company provides plumbing services. The company is a sole proprietorship. Selected transactions of Regent Plumbing Company are described as follows: a) Sharon Regent, the owner, contributed $6000 cash in exchange for capital. b) Paid $4000 cash for equipment to be used for plumbing repairs. c) Borrowed $10,000 from a local bank and deposited the money in the checking account. d) Paid $700 rent for the year. e)...

  • Close Window AMoving to another question will save this response. Oumtion 43 of NQueto Question 43...

    Close Window AMoving to another question will save this response. Oumtion 43 of NQueto Question 43 peints Seve Anser A telephone line must t have a Quantization SNR above 25 dB, what is the minimum number of bits per sample? Quon 43 of 4 A Moving to another question will save this response. L Close Window Encryption ECDHE-RSA-AES256-GCM-SHA All keyboard and mouse input is sent to the host. Move the mouse outside this window or press CTRL-ALT to rel Connection...

  • e Left:2:27:59 Rishabh Setty: Attempt 1 Question 4 (1 point) A 12-year, $100 par value bond...

    e Left:2:27:59 Rishabh Setty: Attempt 1 Question 4 (1 point) A 12-year, $100 par value bond with 10% annual coupons (with respect to the par value), payable semiannually, is redeemable for $120. The annual effective yield on the bond is 6% Calculate the amount of premium amortized in the 5th coupon payment. O a) 1.55 Ob) 0.69 Oc) 0.87 Od) 1.38 O e) 0.81

  • Question 12 The compound shown below has been investigated in the s tone s to come...

    Question 12 The compound shown below has been investigated in the s tone s to come a nd in this compound? Which of the following options gives the numbers of sp, sp2 and sphybridised carbon atoms present in that orden OA. 2, 1,9 OB.2, 0, 10 OC. 9, 2, 1 OD. 3, 0,9 OE. 1, 2,9 A Moving to another question will save this response. < Question 120- Close

  • on Completion Status: wing to another question will save this response Question 31 of 32 4...

    on Completion Status: wing to another question will save this response Question 31 of 32 4 points Save Ans Smile Inc. bean business on January 1, 20XX. During the year, Smile purchased inventory for resale. Smile paid $50,000 in freight charges on these merchandise purchases. During 20XX, Smile sold all its inventory. The company paid $20,000 in freight on these sales After the financial statements for 20XX were released, it was discovered that the $50,000 freight paid on merchandise purchases...

  • The attached chart for this question is an option quote on IBM from the CBOE website....

    The attached chart for this question is an option quote on IBM from the CBOE website. a. Which option contract had the most trades​ today? b. Which option contract is being held the most​ overall? c. Suppose you purchase one option contract with symbol​ IBM1222I210-E. How much will you need to pay your broker for the option contract​ (ignoring commissions)? d. Suppose you sell one option contract with symbol​ IBM1222I210-E. How much will you receive for the option contract​ (ignoring...

  • to another question will save this response. 1 polts stion 12 ured by the Federal Deposit Insurance Corporation (FDIC) cross-classified by asset size and institution type, as of June 30, 2012. (D...

    to another question will save this response. 1 polts stion 12 ured by the Federal Deposit Insurance Corporation (FDIC) cross-classified by asset size and institution type, as of June 30, 2012. (Data from: www2.fdic.gov/sod.) Saving Institutions Commercial Banks Total set size ess than $25 million 25 million-$49.99 million 732 50 million-$99.99 million 1419 100 million-$299.99 367 48 319 831 1595 2619 746 176 2276 343 133 122 $300 million-$499.99 $500 million-$999.99 $1 billion or greater 613 434 429 556 531...

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