Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $73. Option and NY Close RWJ Expiration Strike Price March April July October 68 68 68 68 Volume 243 183 152 73 Calls Last 4.50 10.35 11.20 12.10 Puts Volume 173 140 56 24 Last 4.60 9.35 12.80 11.75
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- Maturity (days) Strike 66 Part1: SO 620 595.9355586 ● r (annualized) O 0.056329721 11% Option Type Call Use the data you are provided with on blackboard to replicate and interpret the following figures Call price as a function of the current underlying price S0 or put price as a function of the current underlying price SO depending on the data assigned to you. Carefully interpret the figures. Make sure you are not simply describing the figures but that you are answering the question of why we observe the patternWhich of the lines is a graph of the profit at maturity of writing a call option on €62,500 with a strike price of $1.20 = €1.00 and an option premium of $3,125? ..********* B. ST C. $120 $1.25 SI 15 (Note: If you are unable to view the image, you can download it here: ProfitGraph.PNG) O A OB lass Profitwhich one is corect please confirm? Q8: An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a put option call option swap premium
- A put option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price in the followings would maximize gain? a. MYR3.00/SGD. b. MYR2.90/SGD. c. MYR3.05/SGD. d. MYR2.95/SGD.A call option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price in the followings would maximize gain? a. MYR3.00/SGD. b. MYR2.90/SGD. c. MYR3.05/SGD. d. MYR2.95/SGD.which one is correct please confirm? Q9: An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a call option put option American option European option
- Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded off to two decimal places Based on the Black-Scholes model, the price of a put option should be P2,800. If the underlying asset has a strike price of P60,000 and a market price of P58,500, how much is the extrinsic value of the option?A put option with an exercise price of P90 was priced at P4. At expiration, the underlying stock is selling for P95.50. If you wrote this put for P4, your profit or loss at expiration would be at what amount? please need it asap uhu(c) A put option with a 420-exercise price on the FTSE 100 Index is currently at 11.75. The FTSE 100Index is at £411.79. Find the intrinsic value and the time value of this option.
- Label the following for this diagram: a. Name of options payoff b. Identify whether positive or negative premium c. Identify breakeven point d. What is the profit or loss when stock price is S60 at maturity e. Suppose you have this options position, should you exercise your right (if any) assuming that the stock price is $60 at maturity? Option Payoffs and Profits Long put $40 $20 $0 Option Payoff Option Profit Exerche Price $20 S40 $20 $40 S60 $80. Stock Price At Maturity Payoff and ProfitYou have the following data on call prices covering the same asset with the same expiration date. Strike Price. Call Option Price $40 -----------$10.50 $45-------------$6.50 $50-------------$3.00 a)Suppose an investor purchases one option with X = $40 and one with X = $50, but sells two options with X = $45. Assuming no transaction costs, in what range of asset prices does the investor make a positive net profit? b)Based on the above strategy, what is the investor’s maximum potential dollar profit and maximum potential dollar loss1. The table below is the latest option screen for Google Class C. Use the information in the screen shot to complete the table and answer the questions that follow. GRAB GOOG US Equity 95) Actions ...ALPHABET INC-C 697.77 -7.30 -1.0354% Center 697.77 Strikes 18 Exp 17-Jun-16 Calc Mode 80 Center Strike Option C660 C685 C700 P660 P685 P700 82 Calls/Puts Calls Ticker Bid Ask Last Volm 17-Jun-16 (108d); CSize 100; IDiv.31; R.69; IFw 1) GOOG 6/17 63.30y 65.10y 66.60y 18 1 62.50y 25.00y 2 675.00 5 680.00 58.70y 56.31y 57.10y 54.90y 51.70y 50.00y 4 Puts Ticker Bid Ask Last Volm 17-Jun-16 (108d); CSize 100; IDiv.31; R.69; IF 660.00 55) GOOG 6/17 24.10y 25.00y 21.60y 665.00 56) GOOG 6/17 25.70y 26.60y 670.00 9) G00G 6/17 27.50y 28.50y 24.70y ) GOOG 6/17 29.30y 30.70y 26.65y 99) GOOG 6/17 31.20y 32.40y 28.71y 685.00 60) GOOG 6/17 33.30y 34.50y 30.60y 690.00 61) GO0G 6/17 35.30y 37.10y 32.90y 695.00 62) GOOG 6/17 37.50y 38.90y 36.30y 5 700.00 63) GOOG 6/17 39.90y 41.50y 40.00y 25 705.00 64) GOOG…