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Use the following information for Q10, Q11 and Q12. It is July and Toyota's stock price...
It is July and Toyota's stock price is 16,561 on the Tokyo Stock Exchange. Your analysis...
It is July and Toyota's stock price is 16,561 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 Toyota based on your analysis by buying three contracts...
Suppose you are given the following information: Current Price of the GPRO stock: Strike Price of...
Suppose you are given the following information: Current Price of the GPRO stock: Strike Price of a 1 year call option: Market Price (premium) of the call option: Strike Price of a 1 year put option: Market Price (premium) of the put option: $4.30 $7.00 $0.49 $7.00 $3.08 (a) What is the maximum amount the buyer of the call option can gain (per share)? [2 Points] (b) What is the maximum amount the seller of the call option can lose...
Today you are writing a put option on TSLA stock, which is currently valued at $200...
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 $185, 4 months to expiration, and currently trades at a premium of $5.7 per share. If at maturity the stock is trading at $163, what is your net profit on this position? Keep in mind that one option covers 100 shares.
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued...
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 $187, 6 months to expiration, and currently trades at a premium of $4.8 per share. If at maturity the stock is trading at $150, what is your net profit on this position? Keep in mind that one option covers 100 shares.
Suppose you buy 100 shares of Google stock which has a current price of $1,265.13 a...
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...
Consider the following binomial tree. The numbers in squares are stock prices. The numbers in circles...
Consider the following binomial tree. The numbers in squares are
stock prices. The numbers in circles will be option prices (#
numbers are the exercise numbers to answer your calculation).
Today, the stock is at 100 and can go up and down over the next
week, and then again up and down from there. We are pricing a call
struck at 90. Use the computed q to sweep back through the tree to
fill the call values in circles. For...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put optio...
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...
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price...
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price W3250 V385 V105 V3000 Q16. An investor undertakes a covered call strategy, executing both the 6 points stock and three month options trades at current market prices shown in the table above. The investor plans on selling the stock when the option expires in three months time. Calculate the total profit and loss from these trades if the stock price in three months time...
Use the option quote information shown here to answer the questions that follow. The stock is...
Use the option quote information shown here to answer the
questions that follow. The stock is currently selling for $114, and
the size of each contract is 100 shares.
a. Suppose you buy 10 contracts of the
February 110 call option. How much will you pay, ignoring
commissions?
b-1. Suppose you buy 10 contracts of
the February 110 call option and also suppose that Macrosoft stock
is selling for $140 per share on the expiration date. How much is
your...
Suppose you construct the following European option trades on Apple stock: write a put option with exercise price $32 and premium $2.86, and write a call option with exercise price $32 and premium $3....
Suppose you construct the following European option trades on Apple stock: write a put option with exercise price $32 and premium $2.86, and write a call option with exercise price $32 and premium $3.51. What is your maximum dollar net profit, per share?
It is July and Toyota's stock price is 16,561 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 Toyota based on your analysis by buying three contracts...
Suppose you are given the following information: Current Price of the GPRO stock: Strike Price of a 1 year call option: Market Price (premium) of the call option: Strike Price of a 1 year put option: Market Price (premium) of the put option: $4.30 $7.00 $0.49 $7.00 $3.08 (a) What is the maximum amount the buyer of the call option can gain (per share)? [2 Points] (b) What is the maximum amount the seller of the call option can lose...
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 $187, 6 months to expiration, and currently trades at a premium of $4.8 per share. If at maturity the stock is trading at $150, what is your net profit on this position? Keep in mind that one option covers 100 shares.
Consider the following binomial tree. The numbers in squares are
stock prices. The numbers in circles will be option prices (#
numbers are the exercise numbers to answer your calculation).
Today, the stock is at 100 and can go up and down over the next
week, and then again up and down from there. We are pricing a call
struck at 90. Use the computed q to sweep back through the tree to
fill the call values in circles. For...
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...
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price W3250 V385 V105 V3000 Q16. An investor undertakes a covered call strategy, executing both the 6 points stock and three month options trades at current market prices shown in the table above. The investor plans on selling the stock when the option expires in three months time. Calculate the total profit and loss from these trades if the stock price in three months time...
Use the option quote information shown here to answer the
questions that follow. The stock is currently selling for $114, and
the size of each contract is 100 shares.
a. Suppose you buy 10 contracts of the
February 110 call option. How much will you pay, ignoring
commissions?
b-1. Suppose you buy 10 contracts of
the February 110 call option and also suppose that Macrosoft stock
is selling for $140 per share on the expiration date. How much is
your...
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