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- On October 25, Mr. Smith purchased 5 listed XYZ Cor poration July 50 calls and paid a $3 premium on each call. The current market price of X YZ Corporation is $48 per share. What would the breakeven point be for Mr. Smith per option? A. $45 B. $48 C. $53 D. $58A customer sells short 100 shares of DEF stock at $63 and sells 1 DEF Oct 60 Put @ $6. The market rises to $68 and the put expires. The customer buys the stock in the market covering her short stock position. The gain or loss is: A $100 gain B $100 loss C $300 gain D $300 lossYou purchase one Virgin Galactic March 120 put contract (equalling 1000 shares) for a put premium of $10. You hold the option until the expiration date, when Virgin Galactic stock sells for $123 per share. a) How much is the realized profit/loss on the transaction? b) What is the maximum profit that you can realize on this position? c) What is biggest loss that you can suffer on this position? d) What is the realized profit/loss of your counterparty (the buyer of this call option)? Please briefly explain the calculations as well, thanks!
- You purchase one Virgin Galactic March 120 put contract (equalling 1000 shares) for a put premium of $10. You hold the option until the expiration date, when Virgin Galactic stock sells for $110 per share. a) How much is the realized profit/loss on the transaction? b) What is the maximum profit that you can realize on this position? Explain your answer! c) What is biggest loss that you can suffer on this position? Explain your answer!d) What is the realized profit/loss of your counterparty (the buyer of this call option)? Explain your answer! Provide a long and detailed answer please <3Mary buys 23 call options with a strike price of $85 and a premium of $3 per contract. If at expiration the market stock price equals $79 calculate her profit/loss from this transaction. -$138 -$69 -$207 -$9Rosa acquired 8 put option contracts on Imports United stock. The strike price was $42.50 and the option premium was $0.69. At expiration, Imports stock was selling for $45.96. What is the payoff on the option contracts? Answer should be formatted as a number with 2 decimal places (e.g. 99.99).
- 4. You purchase one IBM July 250 call contract for a premium of $4 (note that July 90 means contract expires in July and has a strike price of $250; one contract is for 100 shares). The stock has a 2 for 1 split prior to the expiration date. You hold the option until the expiration date when IBM stock sells for $128 per share. You will realize a on the investment. A. $300 profit B. $100 loss C. $400 loss D. $200 profitA customer buys 100 ABC at $63 per share and buys 1 ABC Jan 60 Put @ $4. The stock subsequently falls to $52 and the customer exercises the put selling his stock. The customer has a: A $300 loss B $400 loss C $700 loss D $1,100 lossAn investor sells 10 call options with an exercise price of $35 for a price of $5.00 per each contract. If on the expiration day the underlying asset is trading at $43 per share, what is investor’s gain or loss? $50 gain $30 gain $20 loss $30 loss
- You buy 1 put contract with a strike price of $60 on a stock which you own 100 shares. What are the expiration total values for this position (100 stock shares plus 1 put contract) for prices of $50 and $60 if the put premium is $1.80?The share price of XYZ on April 24 is $124. A trader sells 200 put options on the stock with astrike price of $120 when the option price is $5. The options are exercised when the stock price is $110. What will be the trader’s result? Выберите один ответ: a. 1000$ gain b. 1500 loss c. 1000$ loss d. 1500$ gain e. 2000$ lossYou have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor B bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the arithmetic average rate of return for the investor? A. 20% B. 15% C. 25% D. 0%