Question

Option Strategies 5 A call option expiring in two months has a strike price of $113.00...

Option Strategies 5

A call option expiring in two months has a strike price of $113.00 and is trading at a premium of c=$1.44. A put option expiring in two months has a strike price of $103.00 and is trading at a premium of p=$1.53. Find the maximum loss per share on a long strangle.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A long strangle is established when you buy a call with the higher strike price and at the same time buy a put with a lower s

Add a comment
Know the answer?
Add Answer to:
Option Strategies 5 A call option expiring in two months has a strike price of $113.00...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Option Strategies 4 A call option expiring in two months has a strike price of $105.00...

    Option Strategies 4 A call option expiring in two months has a strike price of $105.00 and is trading at a premium of c=$3.97. A put option expiring in two months has a strike price of $95.00 and is trading at a premium of p=$1.48. Find the lower expiration-date stock price at which a long strangle would break even.

  • Option Strategies 3 A call option expiring in two months has a strike price of $97.00...

    Option Strategies 3 A call option expiring in two months has a strike price of $97.00 and is trading at a premium of c=$12.50. A put option expiring in two months has a strike price of $87.00 and is trading at a premium of p=$3.36. Find the higher expiration-date stock price at which a long strangle would break even.

  • Laverne buys a call option on XOM with a strike price of $90.00. XOM is already...

    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...

  • Option Trading 4 Microsoft stock is trading at $107. A put option expiring in two months...

    Option Trading 4 Microsoft stock is trading at $107. A put option expiring in two months has a strike price of $101.20 and is trading at a premium of c=$0.15. Mike, who has no other Microsoft stock or option positions, writes 14 contracts. Find Mike's margin requirement in total.

  • A stock is currently selling for $68.96. A call option expiring in 194 days with a strike price o...

    A stock is currently selling for $68.96. A call option expiring in 194 days with a strike price of $65.00 is selling for $8.12; A put option expiring in 133 days with a strike price of $70.00 is selling for $4.57. What is the call option's exercise value? a. $0.00 b. $0.20 c. $0.43 d. $0.61 e. $0.69 f. $1.04 g. $2.22 h. $2.49 i. $3.12 j. $3.53 k. $3.55 l. 3.96 m. $4.16 n. $4.57 o. $5.00 p. $6.74...

  • A trader creates a long strangle with put options with a strike price of $160 per...

    A trader creates a long strangle with put options with a strike price of $160 per share, and call options with a strike price of $170 per share by trading a total of 20 option contracts (10 put contracts and 10 call contracts). Each contract is written on 100 shares of stock. The put option is worth $18 per share, and the call option is worth $15 per share. What is the value (payoff) of the strangle at maturity as...

  • A trader creates a long strangle with put options with a strike price of $160 per...

    A trader creates a long strangle with put options with a strike price of $160 per share, and call options with a strike price of $170 per share by trading a total of 20 option contracts (10 put contracts and 10 call contracts). Each contract is written on 100 shares of stock. The put option is worth $18 per share, and the call option is worth $15 per share. What is the value (payoff) of the strangle at maturity as...

  • A call option has a premium of $0.60, a strike price of $40, and 3 months...

    A call option has a premium of $0.60, a strike price of $40, and 3 months to expiration. The current stock price is $39.60. The stock will pay a $0.80 dividend two months from now. The risk-free rate is 3 percent. What is the premium on a 3-month put with a strike price of $40? Assume the options are European style.

  • The premium of a call with a strike price of $35 is $3.0 per share, and...

    The premium of a call with a strike price of $35 is $3.0 per share, and the premium of a put option with a strike price of $34 is $2.0 per share. The maximum loss per-share to the writer of the put will be __________, and the maximum gain per-share to the writer of the call will be _________. A. $33, $31.50 B. $36, $3.0 C. $32, $3.0 D. $34, $35

  • • Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call...

    • Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT