Question
In: Finance
you have purchased 10bcall option contracts on CBA stock with an exercise price of $58.50 when...
you have purchased 10bcall option contracts on CBA stock with an exercise price of $58.50 when the option was quoted at $2.50. the option expires today when the value of CBA stock is at $62.60. what is the net profit or loss on this investment, ignoring all teasing costs and taxes?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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a.
What is your net profit on the option if Pfizer’s stock price
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amount should be indicated by a minus sign. Round your answer to 2
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Net profit
$ per share
b.
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Q5
you have purchased a put option on Pfizer common stock. The
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(For all requirements, negative...
Consider an option on a dividend-paying stock when the stock price is $30, the exercise price...
Consider an option on a dividend-paying stock when the stock
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rate is 5% per annum, the volatility is 25% per annum, and the time
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if it...
Consider an option on a dividend-paying stock when the stock price is $30, the exercise price...
Consider an option on a dividend-paying stock when the stock
price is $30, the exercise price is $29, the risk-free interest
rate is 5% per annum, the volatility is 25% per annum, and the time
to maturity is four months. The present value of the dividend to be
paid in 3 months is $1. (20 points) a. What is the price of the
option if it is a European call? b. What is the price of the option
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You have written a call option on Walmart common stock. The option has an exercise price...
You have written a call option on Walmart common stock. The
option has an exercise price of $88, and Walmart’s stock currently
trades at $86. The option premium is $1.30 per contract. a. How
much of the option premium is due to intrinsic value versus time
value? b. What is your net profit if Walmart’s stock price
decreases to $84 and stays there until the option expires? c. What
is your net profit on the option if Walmart’s stock price...
You have written a call option on Walmart common stock. The option has an exercise price...
You have written a call option on Walmart common stock. The
option has an exercise price of $77, and Walmart’s stock currently
trades at $75. The option premium is $1.40 per contract.
a. How much of the option premium is due to
intrinsic value versus time value?
b. What is your net profit if Walmart’s stock
price decreases to $73 and stays there until the option
expires?
c. What is your net profit on the option if
Walmart’s stock price...
Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price...
Consider an option on a non-dividend-paying stock when the stock
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rate is 5% per annum, the volatility is 25% per annum, and the time
to maturity is four months.
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2. What is the price of the option if
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Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price...
Consider an option on a non-dividend-paying stock when the stock
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rate is 5% per annum, the volatility is 25% per annum, and the time
to maturity is four months.
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What is the price of the option if it is an American call?
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Verify...
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the time to maturity is four months.
(a) What is the price of the option if it is a European
call?
(b) What is the price of the option if it is an American
call?
(c) What is the price of the option if it is...
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