13.The break even point for both buyer and seller = 1.6- 0.03 =$ 1.57
The break point is 1.57:1.57.
13. The premium on a pound put option is $.03 per unit. The exercise price is...
15. The existing spot rate of the Canadian dollar is s.82. The premium on a Canadian dolar call option 1s $$.04. The exercise price is $.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $.87, the profit as a percent of the initial investment (the premium paid) is:
Q1: If Jasim purchase a put option on Canadian dollar from Sara for a premium of € 0.03, with an exercise price of € 0.42. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is € 0.37. a) What is the net profit for Jasim and Sara per unit? (1 mark) SZERE- ---ODDELEEEEEEEEEE -OOOOOOOOOOOOOOOOOOOOOOOOO SEBEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE b) If you know that one option contract represents 20000 units, what is...
Which one is the correct answer
The premium on a pound put option is $0.03 per unit. The exercise price is $1.60. The break-even point is_for the buyer of the put, and__for the seller of the put. (Assume zero transaction costs and that the buyer and seller of the put option are speculators). a. $1.63; $1.57 b. $1.57; $1.57 C. $1.63; $1.63 d. $1.63; $1.60 9:38 PM
A call option exists on British pounds with an exercise price of $1.70, a 90-day expiration date, and a premium of $.03 per unit. A put option exists on British pounds with an exercise price of $1.71, a 90-day expiration date, and a premium of $.035 per unit. You plan to purchase options to cover your future receivables of 300,000 pounds in 90 days. You will exercise the option in 90 days (if at all). You expect the spot rate...
The existing spot rate of the Canadian dollar is $0.82/C$. The premium on a Canadian dollar call option is $0.04. The exercise price is $0.81/C$. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $0.80, the profit (if any) as a percent of the initial investment (the premium paid) is: a. 0% b. 100% c. - 100% d. 50%
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...
You bought British pound put option at a premium of $0.07 per unit. The exercise price is $1.73. In three months (right before the option expires), one can buy British pounds for $1.53 per unit in the spot market. What will be your net profit? OA. -$0.07 OB. $0 OC. 50.13 . D. $0.20 Reset Selection
You bought British pound put option at a premium of $0.07 per unit. The exercise price is $1.73. In three months (right before the option expires), one can buy British pounds for $1.93 per unit in the spot market. What will be your net profit? A.-30.07 OB. 50 OC $0.13 OD. 50.20 Reset Selection
4. You purchase a put option on Swiss francs for a premium of $.05, with an exercise price of $.50. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $.58, how much is the payoff of this long option? And your profit? (And also, please draw the payoff diagram to a long put option holder, optional, for extra credits). (Answer: -$0.05; 0)
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...