You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what is the break-even price of this position? A. $33.00 B. $41.00 C. $74.00 D. $18.50
Ans:- Break-even price of this put option will be given by Strike price - Premium = $37 - $4 = $33. option A is the correct answer.
Put Option:- It is a contract where the owner has the right to sell at a predetermined price if the price of the underlying asset falls below the strike price but he or she is not obliged to sell.
You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what...
You buy one November $179 (strike) put on stock XYZ for an option premium of $10. Ignoring transactions costs and time value of money, what is the break-even stock price of this position? Break even means zero profit / loss. Round your answer to 2 decimal places (nearest cent).
Question 6 2 pts You buy one November $154 (strike) put on stock XYZ for an option premium of $12. Ignoring transactions costs and time value of money, what is the break-even stock price of this position? Break even means zero profit/loss. Round your answer to 2 decimal places (nearest cent).
13- Today, I bought 1 put contract on GM with one-year to maturity with an exercise price of $60 at a premium of $7 when GM stock price was $55. At what stock price will I break-even at the maturity date ignoring transactions costs? PS: In all questions above X denotes the exercise price of the options, C=call premium, P=put premium, and S=stock price.
You purchase one IBM March 70 call option for a premium of $6. Ignoring transaction costs, what would be your profit when stock price is equal to $70 or $80 at expiration? a. -$6, $0 b. -$6, $4 c. $4, $10 d. $10, $20
You establish a straddle on Walmart using September call and put options with a strike price of $64. The call premium is $4.95 and the put premium is $5.70 a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.) Maximum loss b. What will be your profit or loss if Walmart is selling for $72 in September? (Input the amount as positive value. Round your answer...
Which one is the correct answer The premium on a pound put option is $0.03 per unit. The exercise price is $1.60. The break-even point is_for the buyer of the put, and__for the seller of the put. (Assume zero transaction costs and that the buyer and seller of the put option are speculators). a. $1.63; $1.57 b. $1.57; $1.57 C. $1.63; $1.63 d. $1.63; $1.60 9:38 PM
14- Today, I bought 1 call contract on GM with one-year to maturity with an exercise price of $50 at a premium of $5 when GM stock price was $50. At what stock price will I break-even at the maturity date ignoring transactions costs? PS: In all questions above X denotes the exercise price of the options, C=call premium, P=put premium, and S=stock price.
You sell a put option on one share of stock. The put has a premium of $4 and a strike/exercise price of $98. The stock currently has a price of $101.20 per share. On the day that the option expires, the stock is selling for $94. What ends up being your net payoff on this position?
You establish a straddle on Fincorp using September call and put options with a strike price of $80. The call premium is $7.00 and the put premium is $8.50. a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.) Maximum loss b. What will be your profit or loss if Fincorp is selling for $88 in September? (Input the amount as positive value. Round your answer...
You write a put option on a stock for a premium of $1. The exercise price is $6.50. What is the option's profit or loss if just prior to expiration the stock price is $4.50? a. $0.00 b. ($0.50) c. $0.50 d. $1.00 e. ($1.00)