You have just purchased the options listed below. Based on the information given, indicate whether the...
You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter “0” if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.)
| Company | Option | Strike | Today's Stock Price |
In/Out of the Money? |
Premium | Exercise? | Profit | Return |
| ABC | Call | 10 | $10.26 | (Click to select)In the moneyOut of the money | 1.06 | (Click to select)YesNo | % | |
| ABC | Put | 10 | $10.26 | (Click to select)In the moneyOut of the money | 0.91 | (Click to select)YesNo | % | |
| ABC | Call | 25 | $23.93 | (Click to select)In the moneyOut of the money | 1.01 | (Click to select)YesNo | % | |
| ABC | Put | 25 | $23.93 | (Click to select)In the moneyOut of the money | 2.21 | (Click to select)YesNo | % | |
b. Now suppose that time has passed and the stocks’ prices have changed as indicated in the table below. Recalculate your answers to part a.
| Company | Option | Strike | Today's Stock Price |
In/Out of the Money? |
Premium | Exercise? | Profit | Return |
| ABC | Call | 10 | $11.23 | (Click to select)In the moneyOut of the money | 1.06 | (Click to select)YesNo | % | |
| ABC | Put | 10 | $11.23 | (Click to select)In the moneyOut of the money | 0.91 | (Click to select)YesNo | % | |
| ABC | Call | 25 | $27.00 | (Click to select)In the moneyOut of the money | 1.01 | (Click to select)YesNo | % | |
| ABC | Put | 25 | $27.00 | (Click to select)In the moneyOut of the money | 2.21 | (Click to select)YesNo | % |
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You have just purchased the options listed below. Based on the
information given, indicate whether the...
a. You have just purchased the options listed below. Based on the information given, indicate whether...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "0" if there is no profit or return from not exercising the option. Negative amounts should be indicated by a minus sign. Round your answer...
a. You have just purchased the options listed below. Based on the information given, indicate whether...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter “O” if there is no profit or return from not exercising the option. Negative amounts should be indicated by a minus sign. Round your answer...
a. You have just purchased the options listed below. Based on the information given, indicate whether...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) ints In/out of the Money?...
a. You have just purchased the options listed below. Based on the information given, indicate whether...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O” if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Company Option Strike Today's Stock...
Q1. Graph the 2 profit/loss payoff curves in a) and b) below, assuming you purchased each...
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 a) Put option: March Crude Oil (1000 barrels). March Futures = $45.12/bbl. Option Strike Price: $45 per barrel. Option Premium: $4.25 per barrel 01. Graph the 2...
Refer to the stock options on Apple in the Figure 2.10. Suppose you buy a September...
Refer to the stock options on Apple in the Figure 2.10. Suppose
you buy a September expiration call option on 100 shares with
exercise price $100.
a-1. If the stock price in September is $102,
will you exercise your call?
Yes
No
a-2. What is the net profit/loss on your
position? (Negative value should be
indicated by a minus sign.)
(Click to select)Net Profit/ Net
Loss $
a-3. What is the rate of return on your
position? (Round your answer...
The current stock price of RWJ is $312.32. You have the following quotes on RWJ options:...
The current stock price of RWJ is $312.32. You have the following quotes on RWJ options: Expiration Exercise Price Calls Puts Dec 305 27.40 8.25 Jan 310 18.43 14.15 Feb 315 19.55 20.00 May 320 25.55 30.40 a. Which of the options are in the money? b. What is the exercise value of a February call option with a strike price of $315? c. Suppose you buy 10 contracts of the February 315 call option. How much will you pay,...
1.You sell an October 2020 put option on 3M Corporation with an exercise price of $130....
1.You sell an October 2020 put option on 3M Corporation with an exercise price of $130. If, at expiration, 3M is trading at $110 per share, which one of below answers is the most correct? a)I will exercise my option to sell the stock for $130. b)I will have to buy the stock for $130. c)I will have to sell the stock for $130. 2.You buy a July 2022 call option on ABC Inc. with an exercise price of $25...
A stock has a spot price of $27. Its March options are about to expire. One...
A stock has a spot price of $27. Its March options are about to expire. One of its puts is worth $4 and one of its calls is worth $2. The exercise price of the put must be and the exercise price of the call must be Select one: a. One cannot tell from the information given. b. $29; $23 1 c. $25; $31 O d. $31; $25 e. $23; $29 You have bought one April 15th put option contract...
covered call writer break even at (4) The current price of an asset is $100, An...
covered call writer break even at (4) The current price of an asset is $100, An out-of-the-money American put option with an exercise price of $90 is purchased along with'the asset. If the breakeven point for this hedge is at an asset price of $114 at expirationjwhatis the value of the American put at the time of purchase? (5) A stock index fiutures what is your per-share gain or loss? ying two calls and one put on ABC stock, all...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "0" if there is no profit or return from not exercising the option. Negative amounts should be indicated by a minus sign. Round your answer...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter “O” if there is no profit or return from not exercising the option. Negative amounts should be indicated by a minus sign. Round your answer...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) ints In/out of the Money?...
a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O” if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Company Option Strike Today's Stock...
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 a) Put option: March Crude Oil (1000 barrels). March Futures = $45.12/bbl. Option Strike Price: $45 per barrel. Option Premium: $4.25 per barrel 01. Graph the 2...
Refer to the stock options on Apple in the Figure 2.10. Suppose
you buy a September expiration call option on 100 shares with
exercise price $100.
a-1. If the stock price in September is $102,
will you exercise your call?
Yes
No
a-2. What is the net profit/loss on your
position? (Negative value should be
indicated by a minus sign.)
(Click to select)Net Profit/ Net
Loss $
a-3. What is the rate of return on your
position? (Round your answer...
A stock has a spot price of $27. Its March options are about to expire. One of its puts is worth $4 and one of its calls is worth $2. The exercise price of the put must be and the exercise price of the call must be Select one: a. One cannot tell from the information given. b. $29; $23 1 c. $25; $31 O d. $31; $25 e. $23; $29 You have bought one April 15th put option contract...
covered call writer break even at (4) The current price of an asset is $100, An out-of-the-money American put option with an exercise price of $90 is purchased along with'the asset. If the breakeven point for this hedge is at an asset price of $114 at expirationjwhatis the value of the American put at the time of purchase? (5) A stock index fiutures what is your per-share gain or loss? ying two calls and one put on ABC stock, all...
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