Question

$32 For each of the 100 share options shown in the following table, use the underlying stock price at expiration and other information to determine the amount of profit or loss an investor would have had, ignoring brokerage fees (Click the icon here to copy the contents of the data table below into a spreadsheet.) Option Type of Option Cost of Option Strike Price per Underlying Stock Price per Share Share at Expiration А Call $200 $45 $50 B Call $450 $42 $43 с Put $500 $75 $50 D Put $350 $40 E Call $500 $34 $24 The profit (or loss) the investor would have on Option A is $ (Round to the nearest dollar. Enter as a positive number for a profit and enter as a negative number for a loss.) The profit (or loss) the investor would have on Option B is $ (Round to the nearest dollar. Enter as a positive number for a profit and enter as a negative number for a loss) The profit (or loss) the investor would have on Option C is . (Round to the nearest dollar. Enter as a positive number for a profit and enter as a negative number for a loss.) The profit (or loss) the investor would have on Option D is $ (Round to the nearest dollar Enter as a positive number for a profit and enter as a negative number for a loss.) The profit (or loss) the investor would have on Option E is $ (Round to the nearest dollar. Enter as a positive number for a profit and enter as a negative number for a loss.)

Answer 1

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05:47 C w ENG 99+ 30-07-2020 31 x AF119 . Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN AO 68 69 70 71 72 73 74 OPTION A CALL 75 76 77 78 79 PRICE ON EXPIRY > STRIKE PRICE CALL WILL BE EXERCISED PAYOFF = PRICE ON EXPIRY - STRIKE PRICE PAYOFF = (50 X 100) - (45 X 100) = PROFIT = PAYOFF - PREMIUM PROFIT = 500 - 200 = 300 500 80 81 ANSWER 82 OPTION B CALL 83 84 85 86 87 PRICE ON EXPIRY > STRIKE PRICE CALL WILL BE EXERCISED PAYOFF = PRICE ON EXPIRY - STRIKE PRICE PAYOFF = (43 X 100) - (42 X 100) = PROFIT = PAYOFF - PREMIUM PROFIT = 100 - 450 = -350 88 100 89 90 ANSWER 91 NPV OCF CASH FLOW STATW FCF ARM, MSI,confidenceINDEX LOAN CURRENCY CROSS OVER GM HPR AM CUMRET TAX HEDGING MONEY MAE ... + ...

05:48 C w ENG 99+ 30-07-2020 31 x AJ 106 . Z AA AB AD AE AF AG AH AI AL AK AL AM AN AO AC PUT OPTION C 92 93 94 95 96 PRICE ON EXPIRY <STRIKE PRICE PUT WILL BE EXERCISED PAYOFF = STRIKE PRICE - PRICE ON EXPIRY PAYOFF (75 X 100) - (50 X 100) = PROFIT = PAYOFF - PREMIUM PROFIT = 2500 - 500 = 2000 97 2500 98 99 ANSWER OPTION D PUT 100 101 102 103 104 105 PRICE ON EXPIRY > STRIKE PRICE PUT WILL NOT BE EXERCISED PAYOFF = O [ AS PUT WILL NOT BE EXERCISED ] PROFIT = PAYOFF - PREMIUM PROFIT = 0-350 = -350 ANSWER 106 107 108 109 110 111 OPTIONE CALL PRICE ON EXPIRY <STRIKE PRICE CALL WILL NOT BE EXERCISED 112 PAYOFF = 0 113 114 PROFIT = PAYOFF - PREMIUM PROFIT = 0 - 500 = 115 ANSWER -500 NPV OCF CASH FLOW STATW FCF ARM, MSI,confidenceINDEX LOAN CURRENCY CROSS OVER GM HPR AM CUMRET TAX HEDGING MONEY MAE ... + ...