Apple stock is currently selling at 200$. You purchase a 30 day call with a strike...
Apple stock is currently selling at 200$. You purchase a 30 day call with a strike price of 200$ for 18$ and 30 day put for the same strike price for 20$.
What are your total losses or gain at prices $190, $200, and $210?
Homework Answers
Call option Pay off and Profit can be calculated with following equations -
Put option Pay off and Profit can be calculated with following equations -
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.
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Apple stock is currently selling at 200$. You purchase a 30 day
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A stock is currently selling for $75 per share. You could purchase a call with a...
A stock is currently selling for $75 per share. You could purchase a call with a strike price of $70 for $7. You could purchase a put with a strike price of $70 for $2. Calculate the intrinsic value of the call option. Calculate the time value of the call option. Calculate the intrinsic value of the put option. Calculate the time value of the put option.
4. Suppose PDQ stock is currently selling for $40 and the call with a $40 strike...
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Suppose PDQ stock is currently selling for $40 and the call with a $40 strike price...
Suppose PDQ stock is currently selling for $40 and the call with a $40 strike price on the stock is selling for $2.00 and the call with a $60 strike price is selling for $1.00. Calculate the value of a bearish call spread portfolio if the stock prite is $10, $20, $30, $40, $50, $60, $70 and $80. (30 Points) 4.
3. Suppose PDQ's stock is currently selling for $40 and the call with a $40 strike...
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A call option has a strike of $10. The stock currently trades at $30. The stock...
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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...
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1. A 10-month European call option on a stock is currently selling for $5. The stock...
1. A 10-month European call option on a stock is currently selling for $5. The stock price is $64, the strike price is $60. The continuously-compounded risk-free interest rate is 5% per annum for all maturities. 1) Suppose that the stock pays no dividend in the next ten months, and that the price of a 10-month European put with a strike price of $60 on the same stock is trading at $1. Is there an arbitrage opportunity? If yes, how...
A stock is currently selling for $70 per share. You could purchase a call with a strike price of $63 for $8. You could purchase a put with a strike price of $63 for $3. Calculate the intrinsic value of the call option. Intrinsic value
4. Suppose PDQ stock is currently selling for $40 and the call with a $40 strike price on the stock is selling for $2.00 and the call with a $60 strike price is selling for $1.00. Calculate the value of a bearish call spread portfolio if the stock price is $10, $20, $30, $40, $50, $60, $70 and $80. (30 Points)
Suppose PDQ stock is currently selling for $40 and the call with a $40 strike price on the stock is selling for $2.00 and the call with a $60 strike price is selling for $1.00. Calculate the value of a bearish call spread portfolio if the stock prite is $10, $20, $30, $40, $50, $60, $70 and $80. (30 Points) 4.
3. Suppose PDQ's stock is currently selling for $40 and the call with a $40 strike price on the stock is selling for $2.00. Calculate the value of a covered call if the stock price is $20, $30. $40, $50, $60 (10 Points).
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