XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT...
|
XYZ CORP |
||||
|
Exercise |
NYSE |
|||
|
Date |
Price |
Price |
Close |
|
|
Calls |
OCT |
85 |
16 3/4 |
101 11/16 |
|
OCT |
90 |
12 |
101 11/16 |
|
|
OCT |
95 |
7 5/8 |
101 11/16 |
|
|
Puts |
OCT |
85 |
1/8 |
101 11/16 |
|
OCT |
90 |
3/8 |
101 11/16 |
|
|
OCT |
95 |
13/16 |
101 11/16 |
- If you establish a long straddle using the options with an 85-exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
- If you establish a long strap using the options with an 85-exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
- If you establish a long strip using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
Homework Answers
Per share
1
=MAX(101-85,0)+MAX(85-101,0)-16.75-0.125=-0.875
2
=2*MAX(101-85,0)+MAX(85-101,0)-2*16.75-0.125=-1.625
3
=MAX(101-85,0)+2*MAX(85-101,0)-16.75-2*0.125=-1
Per contract
1.
=-87.5
2.
=-162.5
3.
=-100
Add Answer to:
XYZ CORP
Exercise
NYSE
Date
Price
Price
Close
Calls
OCT
85
16 3/4
101 11/16
OCT...
Using the table and information below to calculate the following: The value of the stock is...
Using the table and information below to calculate the following: The value of the stock is currently $87, and expiration is Jan 16, Feb 16, and March 16. Briefly discuss your results. Strike Jan call Feb call March call Jan put Feb put March put 80 4.0 5.5 7.1 1.8 1.9 3.0 85 3.2 4.3 6.0 2.3 3.5 4.0 90 2.6 3.8 4.4 3.2 4.0 5.8 95 1.9 2.1 3.2 4.5 5.2 6.9 Complete the profit/loss tables for 80, 85,...
1. Consider a call option selling for $ 4 in which the exercise price is $50....
1. Consider a call option selling for $ 4 in which the exercise price is $50. A) Determine the value at expiration and the profit for a buyer under the following outcomes: i. The price of the underlying at expiration is $55 ii. The price of the underlying at expiration is $51 iii. The price of the underlying at expiration is $48 B) Determine the value at expiration and the profit for a seller under the following outcomes: i. The...
I need to know process of computing those problem and why that answer is correct. 1....
I need to know process of computing those problem and why that answer is correct. 1. An XYZ OCT 30 call option is trading at a premium of 2 and 1/2. If XYZ is trading at 28, the option has which two of the following properties? 1. An intrinsic value of 2 2. An intrinsic value of 0 3. A time value of 1/2 4. A time value of 2 and 1/2 Answer : 2 and 4 2. M. Bullock...
I screenshot everything and put them in order, please complete every little boxes. the others are...
I screenshot everything and put them in order, please complete
every little boxes. the others are the info provided for it.
Problems: Nondirection Dependent Strategies -- Straddles and Strangles Straddles and Strangles can be profitable regardless of which way the underlying moves -- profitability is not dependent on the direction of the underlying. Depending on whether you are long or short the position, profitability may not depend upon a move at all. This does not by any means make them...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
please complete both required parts of the question Exercise 5-17 (Algo) Price of a bond; interest...
please complete both required parts of the question
Exercise 5-17 (Algo) Price of a bond; interest expense (LO5-9,5-10) On June 30, 2021, Singleton Computers issued 6% stated rate bonds with a face amount of $300 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (3.0%) on June 30 and December 31, beginning on December 31, 2021. (FV of $1. PV of...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
I screenshot everything and put them in order, please complete
every little boxes. the others are the info provided for it.
Problems: Nondirection Dependent Strategies -- Straddles and Strangles Straddles and Strangles can be profitable regardless of which way the underlying moves -- profitability is not dependent on the direction of the underlying. Depending on whether you are long or short the position, profitability may not depend upon a move at all. This does not by any means make them...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
please complete both required parts of the question
Exercise 5-17 (Algo) Price of a bond; interest expense (LO5-9,5-10) On June 30, 2021, Singleton Computers issued 6% stated rate bonds with a face amount of $300 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (3.0%) on June 30 and December 31, beginning on December 31, 2021. (FV of $1. PV of...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Most questions answered within 3 hours.
-
Reflecting upon experience as an employee in the area of
performance management, consider the best or...
asked 2 minutes ago -
Random samples of size n = 90 were selected from a binomial
population with p =...
asked 16 minutes ago -
A buffer solution is made by adding 1.00M weak acid (pKa=4.45)
to 1.25M solution of its...
asked 22 minutes ago -
What do you understand about chemical modification of RNA? What
role they play in terms of...
asked 21 minutes ago -
If epinephrine and norepinephrine cause dilation, are they
stimulating or inhibiting? Please explain.
asked 19 minutes ago -
Add additional information to the student class below such as
name, address, major, and contact information...
asked 23 minutes ago -
Determine the hardness of
this water in units of mg/L as CaCO3. Hardness is the sum...
asked 37 minutes ago -
What energy transformation takes place when the skater rolls
uphill with friction?
A. kinetic energy to...
asked 43 minutes ago -
You work in the Finance Division of a medium size company that
is considering a project...
asked 45 minutes ago -
Which of the following statements is CORRECT?
a.
The first, and perhaps the most critical, step...
asked 52 minutes ago -
A volume of 36.2 mL of a 0.268 M Ca(NO3)2 solution is mixed with
90.5 mL...
asked 59 minutes ago -
1. Consider a utility function u(x1, x2) = x1 + (x2)^a where a
> 0. (a)...
asked 1 hour ago