Question
In: Finance
You purchase one MBI July 134 call contract (equaling 100 shares) for a premium of $15....
You purchase one MBI July 134 call contract (equaling 100 shares) for a premium of $15. You hold the option until the expiration date, when MBI stock sells for $141 per share. You will realize a ________ on the investment. $800 loss $700 loss $800 profit $700 profit
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jeff jeffy answered 1 year agoRelated Solutions
You write one MBI July 135 call contract (equaling 100 shares) for a premium of $15....
You write one MBI July 135 call contract (equaling 100 shares)
for a premium of $15. You hold the option until the expiration
date, when MBI stock sells for $142 per share. You will realize a
________ on the investment.
You write one IBM July 131 call contract for a premium of $7. You hold the...
You write one IBM July 131 call contract for a premium of $7.
You hold the option until the expiration date, when IBM stock sells
for $134 per share. You will realize a ______ on the
investment.
A. $400 profit
B. $300 loss
C. $1,000 loss
D. $300 profit
Suppose you purchased two call option contracts (100 shares per contract) with $15 strike price at...
Suppose you purchased two call option contracts (100 shares per
contract) with $15 strike price at a quoted price of $0.08
premium/share. What is your total profit on this investment if the
price is $14.80 on the option expiration date?
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.)
A trader has a call option contract to sell 100 shares of a stock for a...
A trader has a call option contract to sell 100 shares of a
stock for a strike price of $50. What is the effect on the terms of
the contract of the following events?
(a) A $5 dividend being paid
(b) A 5-for-4 stock split
(c) A 10% stock dividend being paid.
A trader has a call option contract to sell 100 shares of a stock for a...
A trader has a call option contract to sell 100 shares of a
stock for a strike price of $50. What is the effect on the terms of
the contract of the following events?
(a) A $5 dividend being paid
(b) A 5-for-4 stock split
(c) A 10% stock dividend being paid.
buy one call option on 1 gold contract (100 oz.). Exercise Price = $1400/oz Option Premium...
buy one call option on 1 gold contract (100 oz.).
Exercise Price = $1400/oz
Option Premium = $30/oz
If the price of gold moves to $1350, what is the net option
payoff in $
Suppose the price of Apple’s common shares is $180/share. The call option contract (involves 100 shares)...
Suppose the price of Apple’s common shares is $180/share. The
call option contract
(involves 100 shares) on Apple, with a strike price of $195/share
is $10/contract. With the
$180 you have, you are looking at two choices:
A: Buy one share of Apple’s common stock
B: Buy 18 call option contracts
(1) What are the rates of return on A and B if the share price has
dropped to $170/share?
(2) What are the rates of return on A and...
Suppose you purchase one WM May strike=102 call contract at $5 and write one WM May...
Suppose you purchase one WM May strike=102 call contract at $5
and write one WM May strike=107 call at $2. If the price of WM
stock is $105 at expiration, your profit would be _____.
A.
$4.
B.
$400.
C.
zero.
D.
$2.
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?
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