1) draw the payoff picture at expiration for a long position in
a call option that...
1) draw the payoff picture at expiration for a long position in
a call option that has a premium of $1.25 and a strike price of
$50.
2) draw the payoff picture for a short position in the call option
given in problem 1.
1 Draw the payoff picture at expiration for a long position in a
call option that has a premium of $1.75 and a strike price of
$40.
1a Draw the payoff picture for a short position in the call
option given in Problem 2.
1a) Draw the payoff picture at expiration for a long position in
a put option that has a premium of $3.50 and a strike price of
$35.
Draw the payoff picture for a short position in the put option
given in Problem 1a
Draw the payoff picture for a short position in the call option
given in the following problem: Draw the payoff picture at
expiration for a long position in a call option that has a premium
of $1.75 and a strike price of $40.
Draw the payoff picture for a short position in the put option
given in the following problem----
1 Draw the payoff picture at expiration for a long position in a
put option that has a premium of $3.50 and a strike price of
$35.
1. What's the profit of a call option that is “At The Money” at
expiration? (Simplify the answer as much as possible)2. What's the profit of a short put option that is “At The
Money” at expiration? (Simplify the answer as much as possible)3. What's your maximum gain if you’re short a call option and
long the corresponding put option? (Same underlying asset, same
strike price, same expiration date) (Simplify the answer as much as
possible)
Call Option
You have taken a long position in a call option on UBR common
stock. The option has an exercise price of $142 and IBM’s stock
currently trades at $145. The option premium is $6 per
contract.
a. What is your net profit on the option if UBR’s stock price
increases to $150 at expiration of the option and you exercise the
option?
b. How much of the option premium you paid is due to intrinsic
value and how...