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Shares of XYZ are currently trading at $19.29 per share. You open a butterfly spread position...
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position...
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position to capture any potential volatility from the upcoming earning announcement. You long a $0.92 call option with a strike price of $19.00. You long a $0.62 put option with a strike price of $19.00. If at maturity, XYZ shares are trading at $15.00 per share, what is the final value of your long straddle position (on a per share basis)?
A trader creates a long butterfly spread from put options with strike prices of $160, $170,...
A trader creates a long butterfly spread from put options with strike prices of $160, $170, and $180 per share by trading a total of 20 option contracts (5 contracts at $160, 10 contracts at $170 and 5 contracts at $180). Each contract is written on 100 shares of stock. The options are worth $22, $28, and $36 per share of stock. What is the value (payoff) of the butterfly spread at maturity as a function of the then stock...
A trader creates a long butterfly spread from put options with strike prices of $160, $170,...
A trader creates a long butterfly spread from put options with strike prices of $160, $170, and $180 per share by trading a total of 20 option contracts (5 contracts at $160, 10 contracts at $170 and 5 contracts at $180). Each contract is written on 100 shares of stock. The options are worth $22, $28, and $36 per share of stock. What is the value (payoff) of the butterfly spread at maturity as a function of the then stock...
A trader creates a long butterfly spread from put options with strike prices of $90, $100,...
A trader creates a long butterfly spread from put options with strike prices of $90, $100, and $110 per share by trading a total of 40 option contracts (buy 10 contracts struck at $90, sell 20 contracts struck at $100 and buy 10 contracts struck at $110). Each contract is written on 100 shares of stock. The options are worth $18, $24, and $32 per share of stock. What is the value of the butterfly spread at maturity as a...
Suppose that XYZ currently is trading at $20 per share. You buy 1,000 shares using $15,000...
Suppose that XYZ currently is trading at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase cost from your broker. The rate on the margin loan is 8%. a) What is your rate of return if the price of XYZ immediately changes to $22? b) With the same information on stock XYZ and your initial margin above, assume a year has passed. How low can XYZ's price per share fall...
XYZ stock is trading at $120 per share, and the company will not pay any dividends...
XYZ stock is trading at $120 per share, and the company will not pay any dividends over the next year. Consider an XYZ European call option and a European put option, both having an exercise price of $124 and both maturing in exactly one year. The simple (annualized) interest rate for borrowing and lending between now and one year from now is 3% for each 6 month period (6.09% per year). Assume that there are no arbitrage opportunities. Is there...
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will...
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will be volatile in the next three months, and the price will change significantly. However, you do not know the direction of the change. Thus, you decide to enter into a long straddle position using 3 month options, buying both a put and a call contract struck at $73. The premium on both options is $2.4 per share. If at maturity, GoPro is trading at...
please just do question 7. thank you Silicon MicroSystems, Inc. (SMSI) stock is currently selling for...
please just do question 7.
thank you
Silicon MicroSystems, Inc. (SMSI) stock is currently selling for $100 and the firm pays no dividends. The stock's volatility is 0.30 and the risk-free rate is 8%. Consider the following 6-month call and put options on SMSI stock (assume that contract size is 1 share): 6. Call 1 Call 2 Call 3 Strike $90 Price $12.817 $6.999 $3.380 Delta Gamma $100$110 0.7690.548 0.333 ma 0.0180.024 0.022 Put 1 90 Put 2 Put 3...
Please show work. This is just a simple butterfly spread. Thank you. ption Underlying Asset Strike...
Please show work. This is just a simple butterfly
spread. Thank you.
ption Underlying Asset Strike Type Call Put Call Put Call Call Put Call Put Put Futures Price Contract Size Wheat Corn Silver Crude Oil Gasoline Copper Heating Oil Gasoline Soybeans Natural Gas 64.75 $3.00 $17.25 574.25 $1.75 $2.75 $2.00 $1.75 $10.25 $3.25 $4.5550 $3-2300 $18.6100 $59.1400 $1.7160 $3.2210 $2.0703 $1.7160 5,o00 bu 5,ooo bu 5,000 02 1,000 bbl 42,00o gal 25,000 lb 1,000 bbl 42,000 gal 6 $9.7525...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put optio...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $178, 6 months to expiration, and currently trades at a premium of $6.1 per share. If at maturity the stock is trading at $164, what is your net profit on this position? Keep in mind that one option Covers 100 shares. QUESTION 2 Today you go long on 5 December contracts of...
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position to capture any potential volatility from the upcoming earning announcement. You long a $0.92 call option with a strike price of $19.00. You long a $0.62 put option with a strike price of $19.00. If at maturity, XYZ shares are trading at $15.00 per share, what is the final value of your long straddle position (on a per share basis)?
QUESTION 14 You expect that the stock of GoPro, currently trading at $73 per share, will be volatile in the next three months, and the price will change significantly. However, you do not know the direction of the change. Thus, you decide to enter into a long straddle position using 3 month options, buying both a put and a call contract struck at $73. The premium on both options is $2.4 per share. If at maturity, GoPro is trading at...
please just do question 7.
thank you
Silicon MicroSystems, Inc. (SMSI) stock is currently selling for $100 and the firm pays no dividends. The stock's volatility is 0.30 and the risk-free rate is 8%. Consider the following 6-month call and put options on SMSI stock (assume that contract size is 1 share): 6. Call 1 Call 2 Call 3 Strike $90 Price $12.817 $6.999 $3.380 Delta Gamma $100$110 0.7690.548 0.333 ma 0.0180.024 0.022 Put 1 90 Put 2 Put 3...
Please show work. This is just a simple butterfly
spread. Thank you.
ption Underlying Asset Strike Type Call Put Call Put Call Call Put Call Put Put Futures Price Contract Size Wheat Corn Silver Crude Oil Gasoline Copper Heating Oil Gasoline Soybeans Natural Gas 64.75 $3.00 $17.25 574.25 $1.75 $2.75 $2.00 $1.75 $10.25 $3.25 $4.5550 $3-2300 $18.6100 $59.1400 $1.7160 $3.2210 $2.0703 $1.7160 5,o00 bu 5,ooo bu 5,000 02 1,000 bbl 42,00o gal 25,000 lb 1,000 bbl 42,000 gal 6 $9.7525...
QUESTION 1 Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $178, 6 months to expiration, and currently trades at a premium of $6.1 per share. If at maturity the stock is trading at $164, what is your net profit on this position? Keep in mind that one option Covers 100 shares. QUESTION 2 Today you go long on 5 December contracts of...
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