Question

Question 4 (1 point) Here is a screen shot of Amazon call option contract expiring 11/29 Calls for November 29, 2019 Contract Name Last Trade Date Strike Last Price Bid Ask Change AMZN191129C01400000 2019-10-29 11:26AM EDT 1,400.00 360.00 376.50 383 40 000 AMZN191129C01500000 2019-10-21 12:29PM EDT 1,500.00 286.10 277.15 284.00 0.00 AMZN191129001595000 2019-10-25 10:34AM EDT 1,595.00 150.67 183.65 190.50 0.00 Change Volume Open Interest Implied Volatility - - 2 54.36% - - 1 42.32% - 40 40 31.72% Current stock price is 1,776.66, for the third option (row 3), strike price (i.e. exercise price), you bought this option. is your option in the money, out of money, or else, fill in the blank Question 5 (2 points) Based on information from question Q4, you bought the option (strike: $1595), paid the Last Price 150.87. On the expiration date, amazon stock price is 1,800/share, your net profit per share is Question 6 (1 point) Use the information in the screenshot: Puts for November 29, 2019 Contract Name Last Trade Date Strike Last Price AMZN191129P01280000 2019-11-04 2.30PM EST 1,280.00 0.14 AMZN191129P01290000 2019-11-04 12 52PM EST 1.290.00 0.05 Bid Ask Change 0.00 0.26 0.00 0.00026 0.00 Change Volume Open Interest implied Volatility . 1 44 49.85% 6 10 48.78% Answer if the option is in/out of/at the money

Answer 1

Question 4]

A call option is in-the-money if the stock price is higher than the strike price.

The third option is in-the-money

Question 5]

net profit = (stock price at expiry - strike price - premium paid)

net profit = ($1800 - $1595 - $150.87) = $54.13

Question 6]

A put option is out-of-the-money if the stock price is higher than the strike price.

The options are out-of-the-money