Draw a long call and short put profile. Both with a premium of $1 and exercise price of $11. Make sure all relevant information are labelled.
Draw a long call and short put profile. Both with a premium of $1 and exercise price of $11. Make sure all relevant information are labelled.
Homework Answers
Add Answer to:
Draw a long call and short put profile. Both with a premium of $1 and exercise price of $11. Make sure all relevant information are labelled.
Long currency straddle Call option premium = $0.05/€, Put option premium = $0.05/€ Strike price =...
Long currency straddle Call option premium = $0.05/€, Put option premium = $0.05/€ Strike price = $1.10/€, Option contract size = €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium Spot exchange rate $1.00/€ $1.05/€ $1.10/€ $1.15/€ $1.20/€ $1.25/€ Long call option Exercise (N/Y) Holder’s net profit per unit Long put option Exercise (N/Y) Holder’s net profit per unit Net profit Net profit per unit (graph) Short currency straddle Call...
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call...
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...
• Short currency strangle . Call option premium - $0.03/€, Put option premium - $0.028€ Call...
• Short currency strangle . Call option premium - $0.03/€, Put option premium - $0.028€ Call option strike price = $1.15/€, Put option strike price - $1.05/€ Option contract size = €62,500 Draw graphs of call option, put option, and straddle • Mark BE point and Strike prices • Mark each premium $1.05/€ $1.10/€ $1.15/€ | $1.20/€ $1.25/€ $1.30/€ Spot exchange rate Does holder exercise? Sell call option Holder's net profit per unit Seller's net profit per unit Does holder...
7- On January 11, I purchased a call and a put on Exxon with exercise price...
7- On January 11, I purchased a call and a put on Exxon with exercise price of $50 and March 15, maturity when Exxon was selling for $55 at a total cost of $11. On January 21,Exxon falls to $45 and I decide to close my position by exercising (assuming in the money) both my options. Compute my profit/loss. PS: In all questions above X denotes the exercise price of the options, C=call premium, P=put premium, and S=stock price.
Draw the shapes of each of the following: (12 points) Short Call Long Put...
Draw the shapes of each of the following: (12 points) Short Call Long Put Short Strangle Long Straddle Long Call Bear Spread Short Straddle Short Put Bull Spread Long Butterfly Short Butterfly Long Strangle
Done 3. For the following position, sketch the profit profile and label. all relevant points Assume...
Done 3. For the following position, sketch the profit profile and label. all relevant points Assume the stock is trading at $65 today: Expert Q&A long 2 call options with a $70 strike price and a $8 option price short put option with a $60 strike price and a $7 option Roice! short the stock
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price...
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price W3250 V385 V105 V3000 Q16. An investor undertakes a covered call strategy, executing both the 6 points stock and three month options trades at current market prices shown in the table above. The investor plans on selling the stock when the option expires in three months time. Calculate the total profit and loss from these trades if the stock price in three months time...
A certain Call option and Put option for Walker Industries stock both have an exercise (strike)...
A certain Call option and Put option for Walker Industries stock both have an exercise (strike) price of $35.00. The Call premium (price) is $3.21 and the Put premium (price) is $5.32. Assume the stock pays NO dividends, and that the risk-free rate is 4%. Both options expire in 41 days. 1. Using the put/call parity model, calculate the current stock price (S). (Show all work. Highlight in bold your answer.) [4 pts.] 2. Based upon your answer above for...
In expectation of increased price volatility, you purchased a at-the-money call option and at the same time bought a at-the-money put option with common exercise prices of $15. Option premium at $3 ea...
In expectation of increased price volatility, you purchased a at-the-money call option and at the same time bought a at-the-money put option with common exercise prices of $15. Option premium at $3 each. Your strategy is known as a_____? Please draw out the payoff-profile of this strategy and clearly state all key info. What is the maximum $ would you lose with this strategy?
6. A call option has an exercise price of $45 and a premium of $4. If...
6. A call option has an exercise price of $45 and a premium of $4. If the price of the underlying stock is $60, the total payoff of the option is ____? 7. A put option has an exercise price of $20 and a premium of $2. If the price of the underlying stock is $11, what of the total payoff of the option? 8. You write a call option with an exercise price of $67 and a premium of...
• Long cury strangle Call option premium - 50.03., Put option premium - $0.02 € Call option strike price 1.25/6, Put option strike price $1.15 € Option contract size - €62,500 Draw graphs of call option, put option, and straddle Mark BE point and Strike prices Mark each premium 1 S105 S 15E $1.20 € $1.25 € $1.30/E Long call option Spot exchange rate Exercise (NY) Holder's net profit per unit Exercise (NY Holder's net profit per unit Net profit...
• Short currency strangle . Call option premium - $0.03/€, Put option premium - $0.028€ Call option strike price = $1.15/€, Put option strike price - $1.05/€ Option contract size = €62,500 Draw graphs of call option, put option, and straddle • Mark BE point and Strike prices • Mark each premium $1.05/€ $1.10/€ $1.15/€ | $1.20/€ $1.25/€ $1.30/€ Spot exchange rate Does holder exercise? Sell call option Holder's net profit per unit Seller's net profit per unit Does holder...
7- On January 11, I purchased a call and a put on Exxon with exercise price of $50 and March 15, maturity when Exxon was selling for $55 at a total cost of $11. On January 21,Exxon falls to $45 and I decide to close my position by exercising (assuming in the money) both my options. Compute my profit/loss. PS: In all questions above X denotes the exercise price of the options, C=call premium, P=put premium, and S=stock price.
Done 3. For the following position, sketch the profit profile and label. all relevant points Assume the stock is trading at $65 today: Expert Q&A long 2 call options with a $70 strike price and a $8 option price short put option with a $60 strike price and a $7 option Roice! short the stock
Use the information in this table for Q16. Stock Price Call Premium Put Premium Strike Price W3250 V385 V105 V3000 Q16. An investor undertakes a covered call strategy, executing both the 6 points stock and three month options trades at current market prices shown in the table above. The investor plans on selling the stock when the option expires in three months time. Calculate the total profit and loss from these trades if the stock price in three months time...
Most questions answered within 3 hours.
-
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 46 minutes ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 2 hours ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 3 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 4 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 4 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 6 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 6 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 7 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 7 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 8 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 8 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 8 hours ago