Consider the following Call Option: June 80 trading at $4.25/share June is the expiration  80 is the Strike Price $4.25 is the Premium/share If, the stock price is $82 today (May 11th), which one of the following is False

19. You buy a January put option now with a strike price of 350. If the stock price in January is $330, how much is your net profit or loss? * 0/4 Captionless Image A) Loss of $5.35 B) Gain of $20 C) Loss of $20 D) Loss of $25.35 E) None of the ab

Assume a stock price of $31.18, risk-free rate of 3.6 percent, standard deviation of 44 percent, N(₁) value of .62789, and an N(d₂) value of .54232. What is the value of a three-month call option with a strike price of $30 given the Black-Scholes option pricing model? Question 9 options: $3.38 $3.99 $3.68 $1.76 $3.45

You purchased a call option for $2.50 two weeks ago. The call has a strike price of $65 and the stock is now trading for 68.05. If you exercise the call today, what will be your holding period return and effective annual return? a. 26%; 38,524.53% b. 22%; 17,493.64% c. 26%; 40,603.73% d. None of the options. e. 22%; 18,804.01%

You enter into a 1-year futures contract on a non-dividend paying stock when the stock price is $100 and the risk-free interest rate is 5% per annum. Six months later the stock price has fallen to $90, and the interest rate is 4% per annum. Which of the answers below is closest to the change in the futures price? Assume discrete compounding and discounting. Question 6Answer a. -12.34 b. -11.40 c. -10.00 d. -13.20

Awesome Company's stock is currently trading at 50 per share and the risk free rate is currently 6% per year. The price of a put option on Awesome stock with a strike price of 30 and 6 months to maturity is currently 1. Determine the price of a call option with the same strike price and maturity as the put option. No dividends will be paid during the remaining lifetime of the option. A. 20.96 B. 21.86 C. 22.70 D. 51.00

(a) The table below gives information about European options with a maturity date of 6 months. Type Of option Strike Price Call 65 Call 58 Put 65 Premium 5 8 4 (i) Devise the payoff profile of the hedging strategy from the above for an investor betting on an increase in the stock price and calculate the payoff if the stock price increases to $66 after 6 months. (8 marks) (ii) Suppose that another investor expects a big stock price movement but is not sure of the direction. She however bets that the downward movement is more likely. Devise the corresponding trading strategy and calculate the payoff if the stock price is $55 after 6 months. (8 marks) (b) By analysing the pay off profiles of a protective put strategy and a straddle, discuss in what ways these strategies shield the investor from potential losses.

Assume that a stock trading for $30 today will be worth either $25 or $35 in two years. A risk-free asset offers an annualized 3% return (continuously compounded) over that time period. • What is the price today of a two-year put option on this stock with a strike price of $32? The maximum error is 0.1. O a. 1.52 O b. 2.47 O c. 1.82 O d. None of these answers O e. 2.07

Back Open in Safa Consider a stock with a volatility of its logarithm of =0.2. The current price of the stock is $88 and it pays no dividends. Find the option prices on this stock that has an expiration date 4 months from now and a strike price of $90. The current interest rate is 15% compounded monthly. (Write the answers with two decimal places. x.yz) European call option premium European put option premium = $4 Home Courses Tasks Calendar Messages Back Open in Safa European put option premium =| American call option premium = 24 American put option premium = %24 %24