The price of a stock is $34, and a six-month call with a strike price of $30 sells for $6. Round your answers to the nearest dollar. What is the option's intrinsic value? $ What is the option's time premium? $ If the price of the stock rises, what happens to the price of the call? As the price of the stock rises, the value of the call . If the price of the stock falls to $31, what is the maximum you could lose from buying the call? Enter your answer as a positive value. $ What is the maximum profit you could earn by selling the call uncovered (naked)? $ If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The from buying the call is $ . If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value. The from selling the call naked is $ . If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The from buying the call is $ . If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value. The from selling the call naked is $ .
The price of a stock is $34, and a six-month call with a strike price of $30 sells for $6. Round your answers to the nearest dollar. What is the option's intrinsic value? $ What is the option's time premium? $ If the price of the stock rises, what happens to the price of the call? As the price of the stock rises, the value of the call . If the price of the stock falls to $31, what is the maximum you could lose from buying the call? Enter your answer as a positive value. $ What is the maximum profit you could earn by selling the call uncovered (naked)? $ If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The from buying the call is $ . If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value. The from selling the call naked is $ . If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The from buying the call is $ . If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value. The from selling the call naked is $ .
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
The price of a stock is $34, and a six-month call with a strike price of $30 sells for $6. Round your answers to the nearest dollar.
- What is the option's intrinsic value?
$
- What is the option's time premium?
$
- If the price of the stock rises, what happens to the price of the call?
As the price of the stock rises, the value of the call .
- If the price of the stock falls to $31, what is the maximum you could lose from buying the call? Enter your answer as a positive value.
$
- What is the maximum profit you could earn by selling the call uncovered (naked)?
$
- If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from buying the call? Enter your answer as a positive value.
The from buying the call is $ .
- If, at the expiration of the call, the price of the stock is $30, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value.
The from selling the call naked is $ .
- If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from buying the call? Enter your answer as a positive value.
The from buying the call is $ .
- If, at the expiration of the call, the price of the stock is $41, what is the profit (or loss) from selling the call naked? Enter your answer as a positive value.
The from selling the call naked is $ .
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