You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what...
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
Homework Answers
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.
Add Answer to:
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 v...
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 transaction...
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...
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,...
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 po...
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...
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...
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...
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 i...
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...
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)
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 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 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)
Most questions answered within 3 hours.
-
You capture data by having 8 people fill in 30 small dots on a
piece of...
asked 3 hours ago -
What are the z-values such that 70% of the area lies in the
middle of the...
asked 5 hours ago -
You borrow $29,500 to purchase a brand new car. The interest
rate is 6%, and the...
asked 5 hours ago -
The amount of time it takes an asteroid, whose average distance
from the Sun is 4.70...
asked 5 hours ago -
A 0.289 kg mass slides on a frictionless floor with a speed of
1.34 m/s. The...
asked 5 hours ago -
15.A box contains five red balls, three green balls, and two
yellow balls. Suppose you select...
asked 8 hours ago -
Assume you are given the following for Stackelberg industries:
Return on Assets (ROA) = 8%
Debt...
asked 7 hours ago -
an engineer proposes to use mmWave in 5G network to
increase data rate.
What are the...
asked 7 hours ago -
Explain the idea behind using SEMIJOIN in distributed
query processing.
asked 6 hours ago -
why
is context important in selecting and applying guidelines and
principles for interface design?
illustrate your...
asked 6 hours ago -
In a certain board game, a player rolls two fair six-sided dice
until the player rolls...
asked 8 hours ago -
You are going to deposit $3,200 in an account that pays .58
percent interest compounded quarterly....
asked 7 hours ago