You buy a put option on 100 shares of stock. The put has a premium (per...
You buy a put option on 100 shares of stock. The put has a premium (per share) of $0.42 and a strike/exercise price of $5.10. The stock currently has a price of $5.63 per share. On the day that the option expires, the stock is selling for $5.02. What ends up being your net payoff on this position?
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You buy a put option on 100 shares of stock. The put has a
premium (per...
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 sell a 6-month call option on one share of stock. The call has a premium...
You sell a 6-month call option on one share of stock. The call has a premium of $1.70 and a strike/exercise price of $10. The stock currently has a price of $10.75 per share. On the day that the option expires, the stock is selling for $12.58. What ends up being your net playoff on this position? Round your answer to the nearest penny.
Koka Kola common stock is currently trading for $29 per share. A put option on the...
Koka Kola common stock is currently trading for $29 per share. A put option on the stock with a strike price of $32 that expires in 334 days is selling for $3.76. A call option on the stock with a strike price of $32 that expires in 334 days is currently trading for $1.99. What is the exercise value of the put option? (Rounded to the nearest cent.) $ What is the put option's time premium? (Rounded to the nearest...
QUESTION 24 You have a short position in a put option on Proctor & Gamble stock....
QUESTION 24 You have a short position in a put option on Proctor & Gamble stock. If Proctor & Gamble closes at $6.50 on the day that the option expires and the strike price is $7.00, what will be your gross payoff per share (e not accounting for the upfront premium)?
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put optio...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $178, 6 months to expiration, and currently trades at a premium of $6.1 per share. If at maturity the stock is trading at $164, what is your net profit on this position? Keep in mind that one option Covers 100 shares. QUESTION 2 Today you go long on 5 December contracts of...
13. Reducing risks with put options Aa Aa Alison owns 100 shares of RTE Telecom Inc. stock that she bought for $40 per share. Alison bought a put option for all 100 shares of the stock with a strike...
13. Reducing risks with put options Aa Aa Alison owns 100 shares of RTE Telecom Inc. stock that she bought for $40 per share. Alison bought a put option for all 100 shares of the stock with a strike price of $37 per share, option price of $2 per share, and a three-month term. Alison probably bought the option because she What did Alison pay to buy the option? $| sees a bright future for the company and its stock...
Today you are writing a put option on TSLA stock, which is currently valued at $200...
Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $185, 4 months to expiration, and currently trades at a premium of $5.7 per share. If at maturity the stock is trading at $163, what is your net profit on this position? Keep in mind that one option covers 100 shares.
EXplain 21, and 22.*(DOUBLE-WEİGHD Suppose a call option on a given stock has premium $4 per share, and the put option at the same exercise price (E-$100) has premium $3 per share. The price of a...
EXplain 21, and 22.*(DOUBLE-WEİGHD Suppose a call option on a given stock has premium $4 per share, and the put option at the same exercise price (E-$100) has premium $3 per share. The price of a Treasury security having the same maturity as the option is.9800 (dollars per face). a. What would you expect the price of the underlying security to be? b. Illustrate with a graph the profit or payoff profile that would result from a "covered call" (write...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $187, 6 months to expiration, and currently trades at a premium of $4.8 per share. If at maturity the stock is trading at $150, what is your net profit on this position? Keep in mind that one option covers 100 shares.
Suppose you buy 100 shares of Google stock which has a current price of $1,265.13 a...
Suppose you buy 100 shares of Google stock which has a current price of $1,265.13 a share. You want to ensure that you do not lose more than $200 a share. Which of the following option strategies would allow you to do this? A. A covered call B. A naked call C. A protective put D. You cannot ensure that you will not have losses with stocks Suppose I buy 100 shares of AMD and want to limit my losses...
Koka Kola common stock is currently trading for $29 per share. A put option on the stock with a strike price of $32 that expires in 334 days is selling for $3.76. A call option on the stock with a strike price of $32 that expires in 334 days is currently trading for $1.99. What is the exercise value of the put option? (Rounded to the nearest cent.) $ What is the put option's time premium? (Rounded to the nearest...
QUESTION 24 You have a short position in a put option on Proctor & Gamble stock. If Proctor & Gamble closes at $6.50 on the day that the option expires and the strike price is $7.00, what will be your gross payoff per share (e not accounting for the upfront premium)?
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $178, 6 months to expiration, and currently trades at a premium of $6.1 per share. If at maturity the stock is trading at $164, what is your net profit on this position? Keep in mind that one option Covers 100 shares. QUESTION 2 Today you go long on 5 December contracts of...
13. Reducing risks with put options Aa Aa Alison owns 100 shares of RTE Telecom Inc. stock that she bought for $40 per share. Alison bought a put option for all 100 shares of the stock with a strike price of $37 per share, option price of $2 per share, and a three-month term. Alison probably bought the option because she What did Alison pay to buy the option? $| sees a bright future for the company and its stock...
EXplain 21, and 22.*(DOUBLE-WEİGHD Suppose a call option on a given stock has premium $4 per share, and the put option at the same exercise price (E-$100) has premium $3 per share. The price of a Treasury security having the same maturity as the option is.9800 (dollars per face). a. What would you expect the price of the underlying security to be? b. Illustrate with a graph the profit or payoff profile that would result from a "covered call" (write...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $187, 6 months to expiration, and currently trades at a premium of $4.8 per share. If at maturity the stock is trading at $150, what is your net profit on this position? Keep in mind that one option covers 100 shares.
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