When the exercise price of a call option is higher than the current price of the...
- When the exercise price of a call option is higher than the current price of the stock, the option is said to be:
a. at-the-money.
b. in-the-money.
c. out-of-the-money.
d. trading at par.
Homework Answers
Since Exercise price is more than stock price there might be
loss and the option is said to be out of the money.
Option c . out-of-the-money.
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When the exercise price of a call option is higher than the
current price of the...
When the exercise price of a call option is higher than the current price of the...
When the exercise price of a call option is higher than the current price of the stock, the option is said to be: At-the-money. In-the-money. Out-of-the-money. Trading at par.
A put option is said to be in –the money if the: A. exercise price is less than the share price B. exercise price is greater than the share price C. exercise price is equal to the share price D. price...
A put option is said to be in –the money if the: A. exercise price is less than the share price B. exercise price is greater than the share price C. exercise price is equal to the share price D. price of the put is higher than the price of the call
The current market price of a share of Disney stock is $30. If a call option...
The current market price of a share of Disney stock is $30. If a call option on this stock has a strike price of $35, the call is out of the money. is in the money. can be exercised profitably. is out of the money and can be exercised profitably. is in the money and can be exercised profitably. The maximum loss for a writer of a put option on a stock is unlimited. equal to the exercise price. equal...
A call option is out of the money when the ____. A. market price of the...
A call option is out of the money when the ____. A. market price of the underlying security exceeds the exercise price B. market price of the underlying security equals the exercise price C. market price of the underlying security is less than the exercise price D. premium on the option is less than the exercise price E. premium on the option is less than the market price of the underlying security
Call option A has an exercise price of $20. Call option B has an exercise price...
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12. (2 points) A call option on Brocklehurst Corp. has an exercise price of $30. The...
12. (2 points) A call option on Brocklehurst Corp. has an exercise price of $30. The current stock price of Brocklehurst Corp. is $32. The call option is a. at the money b. in the money c. out of the money d. knocked in 13. (3 points) You purchase one MBI March 120 put contract (equaling 100 shares) for a put premium of 510. The maximum profit that you could gain from this strategy is 2. S120 b. $1,000 c....
1) A call option is priced at $7 with an exercise price of $100 and an...
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A 3 month call option is trading with an exercise price of US$50.The current price of...
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25. You buy a call option on Boeing Corp with an exercise price of $40 and...
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Which of the following option strategy makes positive profit only when the stock price does not...
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1) A call option is priced at $7 with an exercise price of $100 and an underlying stock price of $98. If the stock price at expiry is $102 determine the following: o Option value for a long position o Profit for a long position 2) A put option is priced at $4 with an exercise price of $60 and an underlying price of $62. Determine the following: o Option value for a long position if the stock price at...
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer is A. The...
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