32)Answer :
Given :
Strike Price - $30
Premium - $0.90
Stock Price Expiration - $24.80
Number of Contracts - 3 ( i.e 100 shares makes 1 contract )
Put Option Profit / Loss Formula :
Breakeven Point - Stock Price Expiration
So. First, we need to find Breakeven Point from the given information
Breakeven Stock Price = Put Option Strike Price - Premium Paid
= $30 - $0.90
=$29.1
Now we will find out Put Option Profit/ loss = $29.1 - $24.80
= $4.3 per share
As , 1 contract is 100 shares and total 3 contracts were purchased i.e 100 * 3 = 300
So the total Profit will be $4.3 * 300 = $1290 profit
33)Answer :
Given :
Assets: $820 million
Liabilities - $76000
Shares Outstanding = 30.5 million
Fund Charges =4.4% front end Load
So, to find Offer Price we will put all the information :
Offer Price = [($820,000,000 - $76000) / 30,500,000] / (1 - 0.044)
Offer Price = $28.12
Ou sell (write) four call option contracts with a strike price of $27.50 and an option remium of ...
(5 pts) Suppose I sell 10 CALL option contracts on Coke with a strike price of $47.00 and an option premium of 26 cents. The stock price is $45.83 when I sell the call and moves between $43 and $46.25 during the time up to expiration. Assuming that I do not own any Coke stock, what is my profit or loss on this? (5 pts) Using the date in question 11, what would my profit or loss be if the price...
(5 pts) Suppose I sell 5 PUT option contracts on Home Depot with a strike price of $180.00 and an option premium of $19. The stock price is $209.45 when I sell the put and moves between $199.24 and $215.43 during the time up to expiration. What is my maximum profit or loss on this? (5 pts) Using the date in question 13, what would my maximum profit or loss be if the price of Home Depot stock moved from...
John purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40. At expiration, the stock price was $42.25 per share. What is his percentage return? Please show work
You own six call option contracts on WAN stock with a strike price of $30. When you purchased the shares the option price was $.45 and the stock price was $30.10. What is the total intrinsic value of these options if the stock is currently selling for $29.70 a share?
You purchase 26 call option contracts with a strike price of $140 and a premium of $4.35. Assume the stock price at expiration is $152.00. a. What is your dollar profit? (Do not round intermediate calculations.) b. What is your dollar profit if the stock price is $137.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.)
You purchase 14 call option contracts with a strike price of $80 and a premium of $1.80. Assume the stock price at expiration is $92.00. a. What is your dollar profit? b. What is your dollar profit if the stock price is $77.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) f the stock price is $77.95, the call is , so the dollar profit is
A call option with a strike price of $50 on a stock selling at 60 costs $12.5. The call option's intrinsic value is 1) 10, 12.5 2) 12.5, 10 3) 50, 12.5 4) 10, 2.5 5) None of the above 8. and time value is You purchase one share of IBM July call option. The exercise price is 120 and the option premium is $5. You hold the option until the expiration date when IBM stock sells for $123 per...
You purchase 14 call option contracts with a strike price of $80 and a premium of $1.80. Assume the stock price at expiration is $92.00. a. What is your dollar profit? (Do not round intermediate calculations.) Dollar profit $ b. What is your dollar profit if the stock price is $77.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) If the stock price is $77.95, the call is worthless , so the...
You purchase 17 call option contracts with a strike price of $95 and a premium of $3.75. Assume the stock price at expiration is $102.46 a. What is your dollar profit? (Do not round intermediate calculations.) Dollar profit 63 b. What is your dollar profit if the stock price is $88.41? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.) If the stock price is $88.41, the call is worthless so the dollar profit...
4. A call option currently sells for $7.75. It has a strike price of $85 and seven months to maturity. A put with the same strike and expiration date sells for $6.00. If the risk-free interest rate is 3.2 percent, what is the current stock price? 5. Suppose you buy one SPX call option contract with a strike of 1300. At maturity, the S&P 500 Index is at 1321. What is your net gain or loss if the premium you...