If you want the right, but not the obligation, to buy a stock at a specified...
-
If you want the right, but not the obligation, to buy a stock at a specified price you should:
buy a call.
sell a call.
buy a put.
sell a put.
either sell a call or buy a put.
Homework Answers
If you want the right but not the obligation to buy a stock at a specified price you should buy a call as in call option you have a right to buy the stock but its not obligatory. You cans only exercise the right to buy the if the situation is favourable.
Buy a call
Add Answer to:
If you want the right, but not the obligation, to buy a stock at
a specified...
An investor who purchases a put option: a. Has the obligation to buy a given stock...
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 derivative instrument that gives the holder the right but not the obligation to buy the...
A derivative instrument that gives the holder the right but not the obligation to buy the underlying asset at a specified price before or on a specified date is called a/an_______ Call option.Forward. Swap Put option Commodity futures.
Question 1 (1 point) A (long) call is ... O an agreement to buy the underlying...
Question 1 (1 point) A (long) call is ... O an agreement to buy the underlying asset at a specified price O a right to pick a price at which to buy the underlying asset O an agreement to sell the underlying asset at a specified price a right but not obligation to buy the underlying at a specified price Question 2 (1 point) A long put on Tesla is a bet that the stock price ... Increases Moves up...
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...
of the following describes a futures contract? ser) has the right (but not the obligation) to...
of the following describes a futures contract? ser) has the right (but not the obligation) to buy a stock 10. Which of the following des A) The owner (buyer) has ther or asset) at a specific price. B) The owner has the right but specific price. C) The owner has the obligation to buy er has the right (but not the obligation) to sell an asset at a has the obligation to buy an asset at a specific price. D)...
You want to buy a stock that is currently seling for 40. You forecast hat in...
You want to buy a stock that is currently seling for 40. You forecast hat in ne year, he sock's price will be either s 02 ors· u probabilities. The es a available with an exercise price of $80. You are able to borrow at a rate of 6.50%. You would like to hedge your stock position using the call option. ne arcal option on est a. What will be the call's value if the stock price is $102 in...
1. A six-month call is the right to buy stock at $20. Currently, the stock is...
1. A six-month call is the right to buy stock at $20. Currently, the stock is selling for $22, and the call is selling for $5. You buy 100 shares ($2,200) and sell one call (in other words, you receive $500). a. Does this position illustrate covered or naked call writing? b. If, at the expiration date of the call, the price of the stock is S29, what is your profit on the combined position? c. If, at the expiration...
A put option gives the holder the right to buy something the right to sell something...
A put option gives the holder the right to buy something the right to sell something the obligation to buy something the obligation to sell something none of the above
To create a (long) synthetic stock, you should... A. Buy the call, deposit the present value...
To create a (long) synthetic stock, you should... A. Buy the call, deposit the present value of the strike in a risk free bank account and write a put (for the same strike and expiration as the call) . B. Buy the call take out a loan in the amount of PV(X) and buy a put (for the same strike and expiration as the call). C. Sell a call, borrow the present value of the strike, and buy a put...
Assume you are buying stock in Exxon. You buy a share of stock at 77.39, and...
Assume you are buying stock in Exxon. You buy a share of stock at 77.39, and a put option at 75 for 3.95. You sell a call option at 80 for 2.80. You hold your portfolio until the expiration date. On the expiration date you cash out your portfolio. Using excel, graph the profits of your strategy as the price of Exxon stock at the expiration date goes from 50 to 100. (Your graph should include at least 50 data...
A derivative instrument that gives the holder the right but not the obligation to buy the underlying asset at a specified price before or on a specified date is called a/an_______ Call option.Forward. Swap Put option Commodity futures.
Question 1 (1 point) A (long) call is ... O an agreement to buy the underlying asset at a specified price O a right to pick a price at which to buy the underlying asset O an agreement to sell the underlying asset at a specified price a right but not obligation to buy the underlying at a specified price Question 2 (1 point) A long put on Tesla is a bet that the stock price ... Increases Moves up...
of the following describes a futures contract? ser) has the right (but not the obligation) to buy a stock 10. Which of the following des A) The owner (buyer) has ther or asset) at a specific price. B) The owner has the right but specific price. C) The owner has the obligation to buy er has the right (but not the obligation) to sell an asset at a has the obligation to buy an asset at a specific price. D)...
You want to buy a stock that is currently seling for 40. You forecast hat in ne year, he sock's price will be either s 02 ors· u probabilities. The es a available with an exercise price of $80. You are able to borrow at a rate of 6.50%. You would like to hedge your stock position using the call option. ne arcal option on est a. What will be the call's value if the stock price is $102 in...
1. A six-month call is the right to buy stock at $20. Currently, the stock is selling for $22, and the call is selling for $5. You buy 100 shares ($2,200) and sell one call (in other words, you receive $500). a. Does this position illustrate covered or naked call writing? b. If, at the expiration date of the call, the price of the stock is S29, what is your profit on the combined position? c. If, at the expiration...
Most questions answered within 3 hours.
-
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 4 minutes ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 1 hour ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 1 hour ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 1 hour ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 1 hour ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 1 hour ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 2 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 2 hours ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 2 hours ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 2 hours ago -
Consider TCP connection management.
How many segments are typically involved in the TCP connection
establishment? What...
asked 2 hours ago -
1. You placed a stop-loss order to sell 500 shares of AAPL with
a stop price...
asked 2 hours ago