An investor buys a put option at a price of 24.15 dollars with an exercise price of $190.00 at what stock price will be invested break even on the purchase of the put?

Q: A stock price is $30. An investor buys one call option contract on the stock with a strike price of…

A: Break-even refers to the point at which total revenue equals total costs, resulting in neither…

Q: Suppose that a call option to buy a share for $200 costs $10. What is the delta of this option today…

A: Delta is a metric for calculating derivatives risk, which is the ratio of the change in the price of…

Q: Suppose S = $98, K = $100, u = 1.08, d = 0.94 a one period put option with delta of -0.10000 should…

A: The predetermined price that is set when the buyer and seller of an option agree to a contract or…

Q: Give typing answer with explanation and conclusion A call option has a strike price of $11, and a…

A: Value of call option will be calculated using formula :   C = S × N(d1)  -  N(d2) × PV. (K)where, C…

Q: Consider a stock with the current market price equal to So. A trader buys a call optic the stock…

A: Call and put option are used for hedging position in market.

Q: 4. Draw the payoff function of a trader who writes (shorts) a European put option on one share of a…

A: An option is a financial derivative that derives its value from an underlying asset. For example, an…

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: Suppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put…

A: Here,Exercise Price of Call Option is $450Exercise Price of Put Option is $430Spot Price is $460

Q: A trader buys a call option with a strike price of $30 for $3. Does the trader ever exercise the…

A: Solution:Call option means right to buy the underlying asset at exercise price at maturity. To…

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 call option on a MST has a delta of 0.65. A trader has sold 1,500 options. What position should…

A: Writing a call option with a given delta has a risk equivalent to holding n units of stock.…

Q: Finance Suppose you bought a put option with a strike price of $21 for $4. What would be your payoff…

A:

Q: Suppose a trader buys a stock at $70, buys a put option on the same stock with strike X at a price…

A: In trader have long position on stock and long positions on put. Traders make profit on long…

Q: Suppose an investor is considering a multi option strategy on a stock with a current price of $100.…

A: Here, Current Price is $100 Strike Price of Call Option is $110 Strike Price of Put Option is $90…

Q: Suppose you wrote an European call option on Stock A with an exercise of $40 and call premium of…

A: As stock is expired out of money as we wrote the option Profit will be premium paid As there will be…

Q: uppose you bought stock XYZ December RM8 put options for40 sen. What is the strike price? Suppose…

A: Put option gives the opportunity to sell the stock on expiration but no obligations to do that. Put…

Q: The value of an option is $3.16, its vega is 0.7. What will be the expected price of the option if…

A: Vega of an option will measure the impact of changes in volatility on the price of an option.

Q: A stock with a current price of $20 will either move up to $22 or down to $18 over the next period.…

A: Value of an option is the price at which the option contract is trading in the derivative market. It…

Q: Whats the profit of the "Straddle" when stock price is $15, $20, $25, $30, $35, $40, $45, $50, $55,…

A: In the given question we require to calculate the profit of the "Straddle" when stock price is $15,…

Q: You are long in a put option with an exercise price of $60. What is the value of the put at…

A: Given that the exercise price is $60:If the stock price at maturity is below $60, the put option is…

Q: Suppose that put options on a stock with strike prices $18 and $20 cost $2 and $3.50, respectively.…

A: A put option provides the right for selling the stock at a specified price but not the obligations…

Q: Show me the steps to solve... 1. June CME stocks are trading at $ 82.5 and the June CME call option…

A: Intrinsic value of an option is the difference between the market price of the underlying asset and…

Q: Suppose you bought a put option with a strike price of $21 for $3. What would be your profit from…

A: A put option gives the owner the right, but not the obligation, to sell the underlying asset at the…

Q: What is the value of a call option if the underlying stock price is $96, the strike p $90, the…

A: Call options gives opportunity to buy stock on maturity but there is no obligations to do that and…

Q: Question, A trader buys (long) a call option with a strike price of $120 and sells (short) a put…

A:

Q: The value of an option is $6.24, its delta is 0.5, and the price for the underlying stock is $82.…

A: Delta of an Option helps in determining the change in value of an option due to change in price of…

Q: An investor buys a European put on a share for Rs. 3. The stock price is Rs. 42 and the Strike price…

A: Put options:Put options give the buyer the right, but not the obligation to sell the underlying…

Q: Suppose you write 32 put option contracts with a $60 strike. The premium is $2.40. Evaluate your…

A: Number of put options: 32Put option premium: $2.40Strike price: $60

Q: Given the following portfolio: Buy one call option on the stock XYZ with a strike price of $51.1 at…

A: In case of buying call option, the profit arises when the market price of stock before expiry rises…

Q: Suppose you write 46 call option contracts with a $80 strike. The premium is $5.61. Evaluate your…

A: An options holder may exercise their right to buy or sell the contract's underlying shares at a…

Q: You purchased a put option on M common stock. The option has an exercise price of $49 and M's stock…

A: Introduction:Put option gives the holder the right, but not the obligation to sell a specified…

Q: You buy a share of stock, write a one-year call option with X = $26, and buy a one-year put option…

A: Payoff on the portfolio is equal to Strike price of the stock

Q: In follow an Ito process with >0, a stock is worth $80 today, if the price of an option that pays…

A: To price the option, we need to use the Black-Scholes formula, which is a mathematical formula used…

Q: You buy a share of stock, write a 1-year call option with X= $55, and buy a 1-year put option with…

A: Call option writing refers to selling a call option to another investor where the buyer has complete…

Q: Suppose the current ABC stock price is $50 and an option trader speculates this price will fall…

A: Options are derivative instruments that are used as hedge investors from potential risks. There are…

Q: You are attempting to value a put option with an exercise price of $102 and one year to expiration.…

A: Option Market is a Stock Market Strategy. Under which investor will not purchase the shares of the…

Q: What is the value of a call option if the underlying stock price is $112, the strike price is $105,…

A: Stock price = $112Strike price = $105Volatility = 39%Risk-free rate = 6.1%Time = 128 days

Q: Problem 3. Consider a call option with 45-dollar strike price and a put option with 135-dollar…

A: We have a call and a put option on the same stock with same maturity but different strike prices. We…

Q: A trader buys (long) a call option with a strike price of $120 and sells (short) a put option with a…

A: The call Cost is $20Put Cost is $10The strike price for the call option is $120The strike price for…

Q: Suppose you own a put option on Apple stock with a strike price of $150. Suppose it is the…

A: Stock price at expiration = $75Exercise price = $150