You buy one November $179 (strike) put on stock XYZ for an option premium of $10. Ignoring transactions costs and time value of money, what is the break-even stock price of this position? Break even means zero profit / loss. Round your answer to 2 decimal places (nearest cent).
Break-Even Point in Put Option = Strike Price - Premium Paid
Break-Even Point in Put Option = 179 - 10
Break-Even Point in Put Option = $169
You buy one November $179 (strike) put on stock XYZ for an option premium of $10. Ignoring transactions costs and time v...
Question 6 2 pts You buy one November $154 (strike) put on stock XYZ for an option premium of $12. Ignoring transactions costs and time value of money, what is the break-even stock price of this position? Break even means zero profit/loss. Round your answer to 2 decimal places (nearest cent).
You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what is the break-even price of this position? A. $33.00 B. $41.00 C. $74.00 D. $18.50
1. A put option has a strike price of $4.78 and a premium of $0.01. At expiration, the price of the underlying is $4.81. What is the breakeven price of the option? Ignoring the premium, what is the profit or loss to the option holder at expiration.
You buy a put option on 100 shares of stock. The put has a premium (per share) of $0.42 and a strike/exercise price of $5.10. The stock currently has a price of $5.63 per share. On the day that the option expires, the stock is selling for $5.02. What ends up being your net payoff on this position?
You purchase a European put option on XYZ stock with strike price 50. What is the payoff to the option if XYZ stock is trading at 48 on the expiration day? You purchase a 1-year European call option on ABC stock with strike price 100. The option premium is $10. The effective annual interest rate is 10%, so that 100 dollars lent for 1 year will return 110 dollars. What is the PROFIT if ABC stock is trading at 111...
(10 pts) I buy one CALL option on AMD with a strike price of $20.50.The option premium is $100. Suppose the price of AMD is $35.00 a share and I choose to exercise the option. What are my total gains or losses? (10 pts) Using the information in question 6, what would my profit or loss be if I exercise the option when AMD has a market price of $21.00 per share? (10 pts) I buy one PUT option on Walmart...
You establish a straddle on Walmart using September call and put options with a strike price of $64. The call premium is $4.95 and the put premium is $5.70 a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.) Maximum loss b. What will be your profit or loss if Walmart is selling for $72 in September? (Input the amount as positive value. Round your answer...
Open Buying a Call Stock Option Open Buying a Put Stock Option Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 35 1.25 1 36 35 1.45 Intrinsic Value Intrinsic Value Time Value Time Value Cost Cost Close Close Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 40 4.25 1 36 40 0.05 Intrinsic Value Intrinsic Value...
1. You are the buyer of a put option which has a put premium of $2.30. The strike price is $83 and the underlying stock price is $82.50. What is your profit or loss? a. Loss $230 b. Gain $50 c. Gain $230 d. Loss $180 e. None of the above. 2. You are the seller of a put option. The put premium is $5.50 and the exercise price is $105. If the underlying stock price is $110, what is...
You buy a put option on a stock for a premium of $1. The exercise price is $10.00. What is the option's profit or loss if just prior to expiration the stock price is $8.50? a. $0.50 b. $0.00 c. ($0.50) d. $1.00 e. ($1.00)