In: Finance
1. A call option priced at $6 with a stock price of $45 and an exercise price of $46 allows the holder to buy the stock at
$46
$45
$52
$51
$40
2.A put option has a strike price of $75 and the cost of the option is $6. If the current price of the stock is $73 then the breakeven price for the option is:
$69
$75
$67
$81
$79
3. A call option has a strike price of $62 and the cost of the option is $4. If the current price of the stock is $73 then the breakeven price for the option is:
$58
$62
$77
$66
$69
4. You bought a call option with a strike of $65 for $3 when the stock price was $58. If at expiration the stock price is $62, your gain/loss at expiration is:
loss of $3
gain of $1
Breakeven (no gain or loss)
loss of $2
gain of $4
5. You bought a put option with a strike of $60 for $4 when the stock price was $59. If at expiration the stock price is $52, your gain/loss at expiration is:
gain of $4
loss of $4
loss of $1
Breakeven (no gain or loss)
gain of $5
1.
46
2.
=75-6
=69.00
3.
=62+4
=66.00
4.
=MAX(62-65,0)-3
=-3.00
Loss of $3
5.
=MAX(60-52,0)-4
=4.00
Gain of $4