You purchase 10 call option contracts with a strike price of $75 and a premium of...

You purchase 10 call option contracts with a strike price of $75 and a premium of $3.85. If the stock price at expiration is $82, what is your dollar profit? What if the stock price is $72?

Expert Solution

jeff jeffy answered 5 months ago

You purchase 18 call option contracts with a strike price of $100 and a premium of...

You purchase 18 call option contracts with a strike price of $100 and a premium of $2.85. Assume the stock price at expiration is $112.00. a. What is your dollar profit? (Do not round intermediate calculations.) b. What is your dollar profit if the stock price is $97.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.)

You purchase 17 call option contracts with a strike price of $95 and a premium of...

You purchase 17 call option contracts with a strike price of $95 and a premium of $3.75. Assume the stock price at expiration is $102.46. a. What is your dollar profit? (Do not round intermediate calculations.) b. What is your dollar profit if the stock price is $88.41?

Question 9 You wrote 10 call options with a strike price of $75 and a premium...

Question 9 You wrote 10 call options with a strike price of $75 and a premium $3.85. Calculate your gain/ loss if the stock price at expiration is either $82 or $72? A. For stock price $82, loss=$3150 and for stock profit $72, dollar return is -$3150 B. For stock price $82, profit=$3850 and for stock profit $72, dollar return is 0 C. For stock price $82, profit=$3150 and for stock profit $72, dollar return is -$3850 D. For stock...

The price of a call option with a strike of $100 is $10. The price of...

The price of a call option with a strike of $100 is $10. The price of a put option with a strike of $100 is $5. Interest rates are 0 and the current price of the underlying is $100. Can you make an arbitrage profit? If so how? Describe the trade and your pay offs in detail. Part 2: The price of a call option with a strike of $100 is $10. The price of a put option with a...

Mary purchased a call option on Apple. The call premium was $2. The strike price is...

Mary purchased a call option on Apple. The call premium was $2. The strike price is $180. When she purchased the option Apple stock was trading at $170. The option matured today and the stock price is $181. What is her profit/loss? Should she exercise her option?

A call option on a stock expires in 4 months with a strike price of 75....

A call option on a stock expires in 4 months with a strike price of 75. The price of the stock is 80, and the interest rate is 4 percent. Graph the value of this option as the standard deviation of the underlying stock goes from 10 to 50 percent.

Short a call option with a strike price of $1.25 and a premium of $0.12. Long...

Short a call option with a strike price of $1.25 and a premium of $0.12. Long a call option with a strike price of $1.35 and a premium of $0.02. Short a put option with a strike price of 41.35 and a premium of $0.03. a. Draw the final contigency graph(include break even, max loss, max gain) b. Compare your final graph with one of the three original graphs(from the question). Tell me if you see an opportunity to make...

You purchase 15 put option contracts on ABC stock. The strike price is $22, and the...

You purchase 15 put option contracts on ABC stock. The strike price is $22, and the premium is $0.5. The contract size is 100 shares. 1. If the stock is selling for $20 per share at expiration, what are your put options worth? 2. What is your net profit? 3. What if the stock were selling for $21? $22? need full steps, thx!!!

Ned sells a call option on XYZ with a strike price of 25, receiving a premium...

Ned sells a call option on XYZ with a strike price of 25, receiving a premium of $4.25. Don buys a call option on XYZ stock with a strike price 25 for $4.25. XYZ currently trades for $19 per share. Both traders will make money on their option trade: a. If XYZ stock stays between $18 and $25 per share b. If XYZ stock is trading at exactly $25 when the call option expires c. If XYZ stock is trading...

The premium on a June 17 British pound call option with a strike price of $1.2560...

The premium on a June 17 British pound call option with a strike price of $1.2560 when the spot rate is $1.2620 is quoted as $0.02. The time value of this option is. The premium on a June 17 British pound call option with a strike price of $1.2750 when the spot rate is $1.2620 is quoted as $0.025. The intrinsic value of this option is. Your firm has an accounts receivable worth C$200,000 due in six months. The firm...

Question