Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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?
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- Suppose that you, on 1st of January 2023, enter a long position in a 10-year forward contract on a non-dividend-paying stock. The stock price is $50 and the risk-free rate of interest is 5% per annum with yearly compounding (as per 1st of January 2023). Five years later, 1st of January 2028, the price of the stock is $60 and the risk-free interest is still 5%. b) On 1st of January 2028, what are the forward price and the value of the forward contract that you entered into on 1st of January 2023? Explain. c) Suppose that you on 1st of January 2028 enter a short position in a forward contract on the same underlying stock and with expiration date in 5 years. What is the value of your total position? (I.e. what is the total value of the long position in the forward contract in a) and your short position). What is the payoff of your total position at maturity? d) On 1st of January 2028, what is the value to the party holding the short position in the contract entered into on 1st of…arrow_forward17. Based on the following table, if you invest $15,000 into AAPL stock at the beginning of the period, what would be the dollar value of your investment at the end of the time period? AAPL Date 2/1/2023 13.33% 3/1/2023 -13.99% 4/1/2023 6.53% 5/1/2023 -3.68% 6/1/2023 9.01% 7/1/2023 1.81% 8/1/2023 7.13% 9/1/2023 0.43% 10/1/2023 -2.66% 11/1/2023 5.33% 12/1/2023 4.77% 1/1/2024 12.89% Average Variance St. Dev. A. $15,512 B. $16,154 C. $19,467 D. $21,725 E. $22,831 3.41% 0.005910 7.69%arrow_forwardYou purchased three contracts of "XYZ December 4 2015 84.00 Call" at $5.50 per options and exercised it when the underlying stock price was $92. What was your profit and return on the investment, excluding the commisions.arrow_forward
- Bhaarrow_forwardOptions were granted on January 1, 2023by Paltel Co. to purchase 15,000 common shares at an exercise price of $22. The average market price of Paltel's common stock during 2023 was $30 per share. Calculate the incremental shares (denominator) for these options on December 31, 2023. (When writing your answer, do not use commas (,) or the dollar sign ($). For example, if your answer is $10,000 write it as 10000). Answer:arrow_forwardAn investor holds a Ford bond with a face value of $5000, a coupon rate of 7.5%, and semiannual payments that matures on 01/15/2029. How much will the investor receive on 01/15/20292 A. $5.000.00 OB. $2.503.75 OC. $5,375.00 OD. $5,187.50arrow_forward
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