You purchased two contracts of "ABA December 11 2015 72.00 Put" at $4.20 per option and exercise it when the underlying stock price was $65.50. What is your profit and return on the investment, excluding the commissions?

Q: An investor purchases a Put Option on a share for £3.00. The share price is $42 and the strike price…

A: A put option refers to a derivative instrument that provides its holder the choice of selling the…

Q: The shares of Exxon are currently trading at $88. A “put buyer" recently paid a premium of $5 for…

A: Put Seller's Profit is limited to the premium received as the seller of an option doesn't have the…

Q: You purchased two $35 call contracts at $3.40 per option. You exercised the option on expiration day…

A: Call Option is a financial derivative contract which givers option buyer a right not obligation to…

Q: You plan to buy a common stock and hold if tor one year. You expect to receive both ₱150 and ₱260…

A: Arbiratge pricing theory says that the price of an asset should be = its intrinsic Value so that…

Q: If the contract at inception is $20 for a future expiring in 1 year and the current contract is 22…

A: To calculate the implied future value, we can use the formula: Implied Future Value = Current…

Q: You purchase 8 put option contracts on HSB Industries. The strike price was $45 and the option…

A: An option is a type of financial derivative that is used for hedging. In an option contract, the…

Q: You purchase AAPL put option with an exercise price of $120 for a premium of $4.3. You hold the…

A: Put option: It is a contract that provides a right (but not any obligation) to the option holder to…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Geometric average rate of return will be calculated considering return in each period. Following is…

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The one-year futures price on a particular stock-index portfolio is 2,880, the stock index currently…

A: Here,CurrentPrice is $2,800Future Price is $2,880Risk Free Rate is 4%Time Period is 1 yearDividend…

Q: stock price at expiration is $118.25, what is your dollar profit or loss on this investment at…

A: A call option gives the right but not the obligation to buy at the strike price. We can determine…

Q: want answer from option

A: Reference:Debt to Equity Ratio - Definition, formula & how to calculate DE Ratio? (n.d.). Groww.…

Q: WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price…

A: Current Price = $120No of Put Options = 8Strike Price = $110Premium = $8

Q: You bought a $50 strike call option on a stock XYZ for $8.20 and then sold/wrote a $65 call option…

A: In this question we need to calculate the amount we made from buying call option and selling call…

Q: In anticipation of a rise in the stock index, John bought five contracts on August 8 at a premium of…

A: Solution:- Call option means right to buy the underlying asset at an agreed price determined today,…

Q: You have purchased a put option on ABC common stock for $3 per contact. The option has an exercise…

A: Given: Put option value = $3 Exercise price = $57 Stock price = $45…

Q: Suppose that you, on 1st of January 2024, enter a long position in a 10-year forward contract on a…

A: Explanation1. Initial Setup for Long Position (2024)• Stock Price, 𝑆0S0: $50• Risk-Free Rate, r: 5%…

Q: Calculate (i) the cashflow today, (ii) the cashflow at maturity, and (iii) the net profit from your…

A: In this we have to calculate the cash flow at beginning and MATURITY and than find out profit.

Q: The share price of XYZ on April 24 is $124. A trader sells 200 put options on the stock with astrike…

A: Number of put options (N) = 200 Strike price (S) = $ 120 Option price (O) = $ 5 Price at the time of…

Q: Suppose you purchase XYZ 100 shares of call option. Each option is with exercise price 124. Each…

A: Answer Call option shall exercise only if expiry price is higher then exercise price. If expiry or…

Q: Given the following information, price of a stock: strike price of a six-month call: market price of…

A: A covered call refers to the strategy used by investors where they buy a stock while at the same…

Q: A CALL has a strike price of $54 and a maturity of six months. what will the profit/loss be to an…

A: A call option is a derivative contract that gives the buyer of the option, the right to buy the…

Q: A non-dividend-paying stock is currently worth $59. A forward contract on the stock expires in 0.9…

A: Part 1Current stock price, S0 = $59Risk free rate, r = 7% (continuously compounding)Time, T = 0.9…

Q: You purchase AAPL put option with an exercise price of $120 for a premium of $4.5. You hold the…

A: A put option is right to sell the stock at strike price

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years…

A: The required return on the stock represents the total return earned on the stock. This return is…

Q: Today on August 18 Tesla Inc. stock (TSLA) trades at a spot price of $220 per share. A trader…

A: An agreement between a buyer and a seller to buy a specific stock at a specific price up until a…

Q: The share price of a ABC company on May 15 is 57 $. A trader buys 100 call options on the shares…

A: Option price (OP) = $ 2 Number of call options (N) = 100 Strike price (SP) = $ 60 Stock price at the…

Q: The current price of certain share on the market is 15,50EUR. We assume that this share is paying a…

A: To calculate the theoretical price of the 8-month future contract, we need to consider the following…

Q: Mr. A bought a put option of 6 months for a price of $50. The strike price is $150. At the end of 6…

A: Strike price is the price at which a stock can be bought or sold.

Q: PLEASE GIVE ME THE CORRECT ANSWER

A: The formula is: F0  = S0*(1+rf) - d where S0 is the spot price = 4400rf is the risk free rate = 3%…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Purchase Value = No. of shares * Share price  Purchase Value = 100 shares * $100 = $10000

Q: a floor at 3.6% and the reference rate on the underlying is 3.77%, what is the quarterly payment on…

A: Given, Principal, P = $10,000,000 Floor rate, f = 3.6% Reference rate, r = 3.77% No. of months = 3…

Q: You purchase one Ruth April 25 call contract for a premium of $1.8. You hold the option until the…

A: Strike price of the call option = $25Underlying price = $32Option premium = $1.8

Q: A stock will pay a dividend of $3 in 4 months and $4 in 8 months. The current price of the stock is…

A: Arbitrage is the practice of taking advantage of price differences in different markets to make a…

Q: Consider a December 310 call and a December 310 put, both on a stock that is currently selling for…

A: Call option is a contract in which the buyer of the option has the right but not the obligation to…

Q: Sarawat writes a call option on BAR stock with an exercise price of ₱150 per share on October 2022…

A: Writer: An option writer is one who sells an option to an option buyer and collects a premium from…

Q: ssume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike…

A: Put options gives opportunity to sell stocks on the expiration of period but there is no obligation…

Q: January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of…

A: The future contract is a type of standardized type of Contract ,these type of traded on the security…

Q: An investor who bought money-market securities at a yield of 5.50% p.a. and sold the parcel for a…

A: The yield is the total return received on the particular securities during the period.

Q: Assuming that a September put option to buy a share for $100 costs $4.50 and is held until…

A: Put option is the right but not the obligation of the holder to exercise them on a future expiration…