An investor buys a put option with an exercise price of $40 when the stock price is $42. The option premium is $1. At expiration the stock price is $37. The investor will realize____________.   A. a loss of $2. B. a loss of $3. C. a profit of $1. D. a profit of $2.

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• At expiration, the stock price of MSFT is $300. What are the payoffs and profits of holding the following options on MSFT? Suppose you bought all of them at $4. • Call, K=$295 • Put, K-$295 • Call, K=$305 • Put, K=$305

You bought a $50 strike call option on a stock XYZ for $8.20 and then sold/wrote a $65 call option for $4.35 If the stock closes at $49 on expiration day, how much did you lose at expiration?

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b) Suppose you are given the following information: Current market price of a share= R200 000 Option’s exercise price = R300 000 Time until the option expires= 5 yrs Risk free rate =4% Standard deviation of the returns on the share= 0.35 Required: i. Calculate d1 and d2 ii. Suppose N(d1) =0.7517 and N(d2) =0.4602; calculate the price of the call option on the share

A collar is established by buying a share of stock for $54, buying a 6-month put option with exercise price $47, and writing a 6-month call option with exercise price $61. On the basis of the volatility of the stock, you calculate that for a strike price of $47 and expiration of 6 months, N(d1) = 0.7298, whereas for the exercise price of $61, N(d1) = 0.6374. Required: What will be the gain or loss on the collar if the stock price increases by $1? What happens to the delta of the portfolio if the stock price becomes very large? What happens to the delta of the portfolio if the stock price becomes very small?

A stock is currently priced at 43.75 when options are about to expire. What is the net profit of a CALL option with a strike price of 45 for the BUYER of the option if the premium paid was 1.75? (per share)   Group of answer choices   1.75   0.00   -2.25   -1.75   45.00

1. For each of the following cases, calculate (i) the cashflow paid or received today on entering the position, (ii) the gross payoff at expiry, and (iii) the net payoff from your option trading All options are European style and cover 100 shares in the underlying asset. a) You enter a long call option with a strike price of $6 and premium of $2.30. At expiry, the share price is $7.80. b) You enter a long call option with a strike price of $9 and premium of $0.80. At expiry, the share price is $7.90. c) You enter a short call option with an exercise price of $5 and premium of $0.70. The share price at expiry is $5.40. d) You enter a short call option with an exercise price of $5 and premium of $0.70. The share price at expiry is $4.90. e) You buy a long - put option with a strike price of $10 for a premium of $ 1.20. At expiry, the share price is $8.50. f) You write (i. e., short) a put option with strike price $7 for a premium of $0.60. At expiry, the share price is $5.

The profit (loss) experienced on option B is  $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option C is  $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option D is  $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option E is  $ ? (Round to the nearest dollar. Enter a negative number for loss.) How do I find the calculations for these questions?