put option with $3 of premium has an exercise price of $45 . What is the net value of this option at expiration if the stock price turns out to be $43?
Q: A put option with an exercise price of P90 was priced at P4. At expiration, the underlying stock is…
A: A put option is a contract that grants the holder the right to sell a certain number of equity…
Q: What is the value of a call option if the underlying stock price is $81, the strike price is $90,…
A: Given Information: Stock price is $81 Strike price is $90 Expiration date in 60 days Volatility is…
Q: of the option is traded at $105 per share at the same time. The option ths and has a strike price of…
A: Intrinsic value of put option can be calculated from strike price and spot prices.
Q: Determine the? Black-Scholes value of a? one-year, at-the-money call option on Roslin stock. The?…
A: Information Provided: Volatility = 25% Stock price (S) = $70 Risk free rate (r) = 6% Time to expiry…
Q: e Black-Scholes price of a call option on a stock which does not pay dividends and has the…
A: The given problem relates to Black Scholes Model.
Q: According to the Black-Scholes Model, a call option has a value of 4,500. The underlying asset…
A: Market Value is 140,000 Total Exercise price of the option is 138,000 Market price of the call…
Q: all option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price…
A: A call option is an instrument which provides its holder an option to buy an underlying asset on a…
Q: ou have purchased a put option on ABC common stock for $3 per contract. The option has an exercise…
A: Profit on put is the difference between the exercise price of put option and closing price of put…
Q: c.Consider a call option with an exercise price of $105 and one year to expiration. The underlying…
A: Solution : Binomial Option price Model is that option which provide value of call by using the…
Q: The value of an option is $5.64, its theta is 0.03. What will be the expected price of the option on…
A: The rate at which the value of an option declines with time is called as theta. It is written as a…
Q: Consider a call option selling for Ksh.14 in which the exercise price is Ksh.162 and the price of…
A: Answer Call Option premium = Ksh.14 price of the underlying = Ksh.164.
Q: What is the intrinsic and time value for the put option premium with a strike price of $70/barrel…
A: Intrinsic value of put option =Expiration price-strike price Time value of option=Premium-…
Q: Given the following portfolio: Buy one call option on the stock XYZ with a strike price of $52.8 at…
A: Call option strike price = $52.8 Call option premium = $2 Put option strike price = $57.9 Put option…
Q: A speculator may write a put option on stock with an exercise price of $15 and earn a $3 premium…
A: Breakeven point = Exercise price - premium = $15 -$3 =$12
Q: A PUT and a CALL option are written on a stock with a strike price of $60. The options are held…
A: Strike Price is $60 Put Premium is $3 Stock price at expiration is $75 To Find:- Put option…
Q: An investor buys a put option at a price of 24.15 dollars with an exercise price of $190.00 at what…
A:
Q: A PUT and a CALL option are written on a stock with a strike price of $60. The options are held…
A: Strike price = $60 Spot Price = $75 Call Premium = $16
Q: What is the delta of the put option? Solution for A = -0.40 b) You short 100 put options. How…
A: Black-Scholes Merton Model: This model is used to compute the price of options contracts. The…
Q: 1. ABC Corp has a stock price of $100 and a one-year Option with a strike price of $105. Assuming an…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose an investor purchases a 3-month call option and a 3-month put option on ABC stock. The the…
A: The options gives the opportunity to buy or sell the stock on expiration by payment of premium but…
Q: a. Long put option with a strike price of €30 and short put option with a strike price of €50 O…
A: Derivative Market -Option Instrument Needs to judge which strategies is been implement which show…
Q: Consider a call option selling for $4 in which the exercise price is $50. Determine the value at…
A: 1. For call buyer Value at expiration = MAX(0, ST-X) MAX(0, 55-50)…
Q: You have purchased a put option on ABC common stock for $3 per contact. The option has an exercise…
A: Given: Put option value = $3 Exercise price = $57 Stock price = $45…
Q: Consider Triple Play’s call option with a $25 strike price. The following table contains historical…
A: A financial instrument that provides the opportunity to the buyer to purchase the underlying assets…
Q: An option is trading at $3.45. If it has a delta of .78, what would the price of the option be if…
A: Options are derivative contract that provides holder a right not obligation to trade certain assets…
Q: You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise…
A: Put option is the right but not the obligation of the holder to sell the underlying asset at its…
Q: A stock with a current market price of $50 has an associated put option priced at $6.5. This put…
A: The put option is the option for selling an underlying security. It is a bearish position which will…
Q: An investor buys a put option at a premium of $4.6 with an exercise price of $30. At what stock…
A: Break-even on purchase of put option = Exercise Price - Premium
Q: put option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price…
A: Put option is in the money when prices are below the strike price of put.
Q: For a call option on IBM, if the current market price is $130 per share, the strike price is $120…
A: The intrinsic value of the option is also called the value the option is in the money. The…
Q: the stock will be worth $25. | What is the present discounted value of the call option? | What would…
A: A call option gives the holder of the option a right, but not an obligation to buy stocks at a…
Q: Consider the following Put Option: May 50 trading at $3.15/share May is the expiration 50 is the…
A: In case of Put option, Buyer will exercise the put option only if strike price is greater than stock…
Q: You bought a $50 strike call option on a stock XYZ for $8.20 and then sold/wrote a $65 call option…
A: Call Option is exercised only if stock price on maturity is more than the strike price of the call.…
Q: A put option on a stock has an exercise price of $31. If the stock price at expiration is $33.40,…
A: given, K = $31 S= $33.40
Q: PUT and a CALL option are written on a stock with a strike price of $60. The options are held until…
A: Put option believe that prices will go down and there will be profit on put if prices goes down.
Q: . An option is trading at $5.26, has a delta of .52, and a gamma of .11. what would the delta of the…
A: Gamma of option =Delta 1- Delta 2/P1- P2
Q: Assume you are an option buyer. Strike price is $44 and option premium is $3. You will pay $44 when…
A: Strike price (exercise price) of an options contract refers to the net amount at which one option…
Q: A PUT and a CALL option are written on a stock with a strike price of $60. The options are held…
A: Call option is a derivative contract that gives the buyer the right but not the obligation to buy…
Q: A. An option is trading at $5.03. If it has a delta of -.56, what would the price of the option be…
A: Delta of an option is the change in price of option to change in price of underlying.
Q: Ms. Co currently own a put option on Stock A with a strike price of P45. If the current price of…
A: Derivative: A derivative is a financial instrument traded on the stock market which will have an…
Q: Profit on Option You have purchased a call option contract on Dash common stock. The option has an…
A: Call option is a derivative contract that gives the buyer the right but not the obligation to buy…
Q: A non – dividend – paying stock with a current price of $52, the strike price is $50, the risk free…
A: Calculate the call option and put option as follows: Formulas:
Q: You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise…
A: Put option gives the investor an option to sell the stock at a given exercise price. Put option…
An put option with $3 of premium has an exercise price of $45 . What is the net value of this option at expiration if the stock price turns out to be $43?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Suppose that a June call option to buy a share for $65 costs $3.5 and is held until June. Under what circumstances will the holder of the option make profit Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.A call option on the stock of Bedrock Boulders has a market price of $7.The stock sells for $30 a share, and the option has a strike price of $25 ashare. What is the exercise value of the call option? What is the option’stime value?Consider a call option selling for $4 in which the exercise price is $50. Determine the value at expiration and the profile for a buyer if the price of the underlying at expiration is $55. Determine the value at expiration and the profile for a buyer if the price of the underlying at expiration is $48. 3.Determine the value at expiration and the profit for a seller if the price of the underling at expiration is $49 4.Determine the value at expiration and the profit for a seller if the price of the underling at expiration is $52. 5. Draw the payoff and profit and loss diagram for IV indicating break even, profit/loss, premium and strike price.
- Assuming that a September put option to buy a share for $100 costs $4.50 and is held until September. Under what circumstances will the holder of this option make a profit? Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.You are long in a put option with an exercise price of $60. What is the value of the put at Maturity? If the put premium at the time of purchase was $4, what is your profit or loss on the position? Use stock prices of 45, 50, 60, 65, and 70.A call option on Rosenstein Corporation stock has a market price of $7. Thestock sells for $31 a share, and the option has an exercise price of $25 a share.a. What is the exercise value of the call option?b. What is the premium on the option?
- Calculate the profit or loss per share of stock to an investor who buys a call option on a stock whose price is K90 but a call option exercise price if K100 if the stock price at expiration is K105. Calculate the profit or loss for a purchaser of a put option with the same exercise price and expiration?You have purchased a put option on ABC common stock for $3 per contract. The option has an exercise price of $54. What is your net profit on this option if stock price is $41 at expiration?The value of an option is $6.24, its delta is 0.5, and the price for the underlying stock is $82. What will be the expected price of an option be if the price for the underlying stock drops to $80.50?
- A PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration. Suppose the stock price at expiration is $75. Call premium is $16 and Put premium is $3. The CALL option will ___ because the call is ___. But the PUT option will ___ because the put is ___, with a TIME VALUE of ___.a) Be exercised; in-the-money; not be exercised; out-of-the-money; zerob) not be exercised; out-of-the-money; be exercised; in-the-money; zeroc) Be exercised; in-the-money; not be exercised; out-of-the-money; 1d) Be exercised; in-the-money; be exercised; in-the-money; zeroe) None of the above is correctAn option is trading at $3.45. If it has a delta of .78, what would the price of the option be if the underlying increases by $.75? A. What would the price of the option be if the underlying decreases by $.55? B. What makes this a call option? C. With a delta of .78, is this option ITM, ATM or OTM and how?You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $56. What is your net profit on this option if stock price is S45 at expiration? Moving to another question will save this response.