Question

In: Finance

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.

Solutions

Expert Solution

Long

2) Short

LET ME KNOW IF YOU HAVE ANY DOUBTS


Related Solutions

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 $1.75 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...
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 at expiration for a long position in a put option that has...
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 $60.
Draw the payoff picture for a short position in the call option given in the following...
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...
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.
Draw the payoff diagram of an option that consists of 1 call (E=10) plus 1 put...
Draw the payoff diagram of an option that consists of 1 call (E=10) plus 1 put (E=15). Please draw the diagram with an explanation. Thank you!
Draw the payoff diagram for owning (buying) a call and a put option with same strike...
Draw the payoff diagram for owning (buying) a call and a put option with same strike price X.
1. What's the profit of a call option that is “At The Money” at expiration?
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....
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...
Explain the difference between a long call option and a long futures position.
Explain the difference between a long call option and a long futures position.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT