An investor has bought a put option at X=$522 for p=$7. At what stock price will he break even?
An investor has bought a put option at X=$522 for p=$7. At what stock price will...
A stock price is $25. An investor buys one put option contract on the stock with a strike price of $24 and sells a put option contract on the stock with a strike price of $22.50. The market prices of the options are $2.12 and$1.95, respectively. The options have the same maturity date. Describe the investor's position and the possible gain/loss he will get (taking into account the initial investment).
: An investor writes five naked put option contracts on a stock. The option price is $8, the strike price is $35, and the stock price is $38. What is the margin requirement for the options
An investor is bearish (bullish) on a particular stock and decided to buy a put (call) with a strike price of $25. Ignoring commissions, if the option was purchased for a price of $.85, what is the break-even point for the investor on the put and the call respectively?
You bought Stock A at a purchase price of: Put option strike price: $25 $15 Option expiration date: Price of put option: June 30, 2020 $5 Stock goes up to $50 Stock goes down to $5 Profit/Loss on stock if sell now Profit/Loss on call option if sell now
• Profit/loss for buyers/sellers of call option/put option Breakeven for call option/put option An investor bought 1 XYZ March 30 call for 3. o What is the breakeven point? 3043-33 o What is the initial investment of this strategy? 300 o What is the profit/loss if XYZ trades for 25 at expiration? o What is the profit/loss if XYZ trades for 35 at expiration? o What is the max. profit? P *LP o What is the max. loss? Premium
An investor buys 100 shares of IBM stock at the price of $200, and a put option of selling one hundred shares at a price of $202. The option price is $3 for each share. If the stock price rose to $210 and the investor let the option expire, what would be the gain?
You own a put option on Ford stock with a strike price of $11. The option will expire in exactly six months' time. When you bought the put, its oost to you was $2. The option will expire in exactly six months' time. a. If the stock is trading at $7 in six months, what will be the payoff of the put? What will be the profit of the put? b. If the stock is trading at $20 in six...
An investor purchases a long put at a price of $2.60. The expiration price is $35. If the current stock price is $34.10, what is the break-even point for the investor? $35 $37.60 $31.50 $32.40
An investor who purchases a put option: a. Has the obligation to buy a given stock at a specified price during a designated time period. b. Has the obligation to sell a given stock at a specified price during a designated time period. c. Has the right to buy a given stock at a specified price during a designated time period. d. Has the right to sell a given stock at a specified price during a designated time period. e....
A put option on a stock has an exercise price of $27.25. If the stock price at expiration is $25, what is the option payoff for a long put position? a. $2.25 b. $0 c. -$2.25 d. $5