C. Option c is the answer.
Explanation:-
Put Option: A put is an options contract that gives the buyer the right to sell the underlying asset at the strike price at any time up to the expiration date
Strike Price: The price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, the strike price is also known as exercise price.
For example, a stock put option with a strike price of 10 means the put option buyer can use the option to sell that stock at $10 before the option expires
Question 59808 What is a put option's strike price? A The amount the holder pays the...
When a put option is exercised, the: seller of the option receives the strike price. seller of the option receives the option premium. buyer of the option sells the underlying asset and receives the option premium. buyer of the option pays the option premium and receives the underlying asset. seller of the option must buy the underlying asset and pay the strike price.
27. The writer (seller) of a put option a. agrees to sell shares at a set price if the option holder desires b. agrees to buy shares at a set price if the option holder desires c. has the right to buy shares at a set price d. has the right to spl shares at a set price 17. A call option is said to be "in-the-money" if a. the stock price (i.e. the underlying asset) is greater than the...
When a put option is exercised, the: Multiple Choice seller of the option receives the strike price. seller of the option receives the option premium. buyer of the option sells the underlying asset and receives the option premium. Incorrect buyer of the option pays the option premium and receives the underlying asset. seller of the option must buy the underlying asset and pay the 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...
Mark buys Call and Put options with different strike prices. Please read the following information. Call option premium: $0.02/€ Put option premium: $0.01/€ Call option strike price: $1.15/€ Put option strike price: $1.05/€ Option contract size: €50,000 Break-even points for Mark are _______. a. None of the above b. $1.02/€ and $1.18/€ c. $1.08/€ and $1.12/€ d. $1.06/€ and $1.16/€
8 What should a trader do when the one-year forward price of an investment asset is too low? Assume that the asset provides no income A. The trader should borrow the price of the asset, buy one unit of the asset and enter into a short forward contract to sell the asset in one year B. The trader should borrow the price of the asset, buy one unit of the asset and enter into a long forward contract to buy...
hint(think about the conditions under which early
exercise of an American put option is optimal. What would happen to
a European put option in this condition)
De Ingler utan nat of a European call option None of the above are true, since the decision to exercise the option early lies with the writer of the option QUESTION 5 Which of the following is true about the premium of a European put option in relation to the option's intrinsic value? The...
You purchase a put option on a stock. The profit at maturity of the option is ___________ where X equals the option's strike price, ST is the stock price at contract expiration and CP0 is the original purchase price of the option. A) Max(0, ST - X) - CP0 B) Max(0, X - ST ) - CP0 C) Max(0, X - ST - CP0) D) Max(0, ST - X - CP0) The maximum loss a seller of a stock put...
The current price of a stock is $75. A put option with a strike price of $70 is purchased along with the stock. If the breakeven point for this hedge is at a stock price of $82, then the value of the put option at the time of purchase was (a) $5 (b) $7 (c) $12 (d) $14 (e) None of the above
1. A trader has a put option contract to sell 100 shares of a stock for a strike price of $60. What is the effect on the terms of the contract of (a) A $2 dividend being declared (b) A $2 dividend being paid (c) A 5-for-2 stock split (d) A 5% stock dividend being paid.
1. A trader has a put option contract to sell 100 shares of a stock for a strike price of $60. What is the...