QUESTION 4You want to sell four call option contracts on AA Industries ntock at a strike price of $32.50 a share. How muchwill you receive in option premiums if you place this order today?Use these option quotes to answer this question:ZZ Industries: Price 34.36Calla:StrikeSymbolLastChgBidAskVolОрen Int30.00 ZZBF4.3010.074.304.40623,42932.50 ZZBZ1.8710.071.821.872368,16835.00 ZZBG0.0110.050.000.01311938,017Puts:StrikeSymbolZZNFChgOpen Int7,258LastBidAskVol30.000.010.000,000.0132.50 ZZNZ0.0110.020.000.0156234,97235.00ZZNG0.6010.140.630.68263719,68601.51.0202 5702O3. 5827O4. 5720

Option premium is the amount that the call option writer gets when he sell the call option.

You want to sell four call option contracts on AA Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this arder today? Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Symbol Strike Last Chg Bid Ask Vol Open Int 30.00 ZZBF 4.30 10.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 10.07 1.82 1.87 236 8,168 35.00 ZZBG 0.01 10.05 0.00 0.01 3119 38,017 Puts: Open Int 7,258 Strike Symbol ZZNF Last Chg Bid Ask Vol 30.00 0.01 0.00 0.00 0.01 32.50 ZZNZ 0.01 10.02 0.00 0.01 562 34,972 35.00 ZZNG 0.60 10.14 0.63 0.68 2637 19,686 01.51.02 O2 5782 O3.5827

You want to sell four call option contracts on AA Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this arder today? Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Symbol Strike Last Chg Bid Ask Vol Open Int 30.00 ZZBF 4.30 10.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 10.07 1.82 1.87 236 8,168 35.00 ZZBG 0.01 10.05 0.00 0.01 3119 38,017 Puts: Open Int 7,258 Strike Symbol ZZNF Last Chg Bid Ask Vol 30.00 0.01 0.00 0.00 0.01 32.50 ZZNZ 0.01 10.02 0.00 0.01 562 34,972 35.00 ZZNG 0.60 10.14 0.63 0.68 2637 19,686 01.51.02 O2 5782 O3.5827

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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None
Suppose you own a put option on Apple stock with a strike price of $150. Suppose it is the expiration date of the option and the current stock price of Apple is $75. What payoff will you receive from making an optimal exercise decision on your option? 1. -$75 2. $0 3. $75
7. Ahmed is strategizing to add option investment for short term on ABC stock that is currently trading at $35, the strike price is $40. With the interest rate of 3 percent and call option price of $2.45, what should be the put option price using put-call parity formula. A) $6.28 B) $2.85 C) unlimited D) $16.45 E) $9.70 my Show Transcribed Text
Dec com futures closed today at $5.76 and you buy three (3) $5.80 put options for $0.47. Because of your proximity to several large Ethanol plants, your basis has historically been $0.00, your local price is even with the board. a. Will the com market have to increase or decrease for you to profit from your option? b. What is the minimum price you will net for the bushels covered by the puts? c. Dec com closed at $6.75 on the day your options expired. What was the value of the options at expiration? d. You sold your corn to one of the ethanol plants on December 23rd for $6.35. What is the net price you received for the bushels covered by the puts?
Basic Option Strategies Profit Computation Assume the below prices for calls and puts: Call Put Strike Jul Aug Oct Jul Aug Oct 165 2.7 5.25 8.1 2.4 4.75 6.75 170 0.8 3.25 6 5.75 7.5 1. Buy one August 170 call contract. Hold it until expiration. lIdentify the breakeven stock price at expiration. What is the profit/loss if ST=190? What is the maximum profit? 2. Buy one October 165 put contract. Hold it until the options expire. Identify the breakeven stock price at expiration. What is the Maximum possible loss from the transaction? What is the profit/loss if ST=185
← A 8-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.05 can be purchased for $512. Assuming that the market price of Home Depot stock rises to $65 11 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? The profit this option would generate over the 8-month holding period is $ (Round to the nearest cent.) Correc
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