PUT Options gives the RIGHT but NOT OBLIGATION, to Sell the Stock at the Strike Price.
Therefore, For a Speculative Position to Sell the Stock, Put Options will be purchased.
Break Even Share Price = Strike Price-Put Premium = 6300-121 = Yen 6179
It is July and Toyota's stock price is 16,561 on the Tokyo Stock Exchange. Your analysis...
Use the following information for Q10, Q11 and Q12. It is July and Toyota's stock price is ¥6,561 on the Tokyo Stock Exchange. Your analysis suggests that Toyota's stock is overvalued and is worth 9% less than it trades for today. There are September expiration call and put options with a strike of ¥6300. The call premium is ¥390 per share and the put premium is ¥121 per share. The contract is for 1,000 shares. You decide to speculate on...
Suppose you buy 100 shares of Google stock which has a current price of $1,265.13 a share. You want to ensure that you do not lose more than $200 a share. Which of the following option strategies would allow you to do this? A. A covered call B. A naked call C. A protective put D. You cannot ensure that you will not have losses with stocks Suppose I buy 100 shares of AMD and want to limit my losses...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $178, 6 months to expiration, and currently trades at a premium of $6.1 per share. If at maturity the stock is trading at $164, what is your net profit on this position? Keep in mind that one option Covers 100 shares. QUESTION 2 Today you go long on 5 December contracts of...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $50.00? A. Gain of $71.00 B. Gain of $171.00 C. Gain of...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $299.00? A. Gain of $224,000 B. Gain of $171.00 C. Gain of...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $299.00? A. Gain of $224,000 B. Gain of $171.00 C. Gain of...
Laverne buys a call option on XOM with a strike price of $90.00. XOM is already trading at $91.00 per share. Laverne pays a $1.65 premium on the call, which has a three month expiration. If XOM stock goes up to $103.00 per share and Laverne sells the call at a premium of $12.65, how much total profit will Laverne make on this transaction? $126.50 $12.65 $1,265.00 $1,100.00 Shirley believes that Nike (NKE) stock is going to decline in value...
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents. What is your total profit or loss at a stock price of $45.00? A. Gain of $71.00 B. Gain of $119.00 C. Gain of...
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,...
32 33 please!!!
ou sell (write) four call option contracts with a strike price of $27.50 and an option remium of $0.66. At expiration, the stock was selling for $26.90 a share. What is the total profit or loss on your option position? 2) You purchased three put option contracts with a strike price of $30 and a premium of $o.90 At expiration, the stock was selling for $24.80 a share. What is the total profit or loss on your...