You observe the following quote for a call option on MSFT. The option has a strike price of $255 and expires on June 18, 2021: Bid: $6.14 Ask: $7.06 If you want to buy 9 contracts of the option, how much will you need to pay?

What is the appropriate risk-free rate on May 11, 2022 for an option that expires on Oct 20, 2022 if the T-bill with closest maturity is quoted as 3.65/3.44? a. What is the un-annualized discount rate? Round your answer to two decimals. b. What is the T-bill price? Round your answer to two decimals b . What is the approximate risk-free rate? % Round your answer to two decimals

Please show step by step how to solve this CBE is currently trading at $120/share. You sold 8 PUT-option contracts on CBE with a strike price of $110 for $8 each. a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date?b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date?c. What will be your total $ and % gain/loss if WRE price is $100 at the expiration date?

Which 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 Profit

Suppose you purchase the July 2020 call option on corn futures with a strike price of $3.35. Assume you purchased the option at the last price of the day. Use Table 23.2. a. How much does your option cost per bushel of corn? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost of your position? Assume each contract is for 5,000 bushels. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose the price of corn is $3.31 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) d. What is your net profit or loss if corn futures prices are $3.53 per bushel at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) a.…

Table 2.7 Corn futures prices on the Chicago Mercantile Exchange, January 3, 2019 Maturity Last Mar-19 May-19 Jul-19 Sep-19 Dec-19 Mar-20 Change High 3.8025 0.7500 3.8075 3.7975 3.8800 0.5000 3.8800 3.8750 3.9500 0.2500 3.9525 3.9450 3.9700 0.0000 3.9700 3.9650 4.0075 -0.5000 4.0100 4.0025 4.0975 0.0000 4.1000 4.0950 Low Source: www.cmegroup.com.

Please answer the five questions below. You may attach a spreadsheet or enter the answers in this box 1. A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. if the risk free rate is 3%, and the current stock price is $45, what should the corresponding put be worth?

A one year call option contract of Office Pro sells for $2,200. In one year, the stock price will be either $20 or $30.  The exercise price on the call option is $15.  What is the current value of the option if the risk-free rate is 8 percent? A.$ 3.48 B.$ 2.78 C.$ 8.11 D.It is impossible to determine with the given information.

* You write a European vanilla call option today with a strike price of 100 pence and sell the option for 10 pence. The holder chooses to exercise the option on the expiry date. On this date, the underlying is worth 120 pence. Calculate, showing all steps, your overall profit/loss on this transaction.

AU.S. investor writes five naked call option contracts. The option price is $ 4.00, the strike price is $70.00, and the stock price is $60.00. What is the initial margin requirement?