An investor purchases a call option at a premium of $1.25, with an exercise price of $7.50 within three months.The holder of the option will: A) B) C) D) *       A. be in-the-money if the market price of the shares reaches $6.25       B. only exercise the option if the current market price reaches or exceeds $8.75       C. exercise the option at any price above $7.50.       D. break even at a market price of $7.50, and will exercise the option

A call option with a current value of $6.20. A put option with a current value of $6.70. Both options written on the same stock and both with 1 year until expiration. The current price of the stock is $52.00 and the prevailing risk-free rate is 7.00%. What must be the striking price of either option?

You sell a call option on Tesla stock with an exercise price of $150.00. The option expires after one month period as soon as the option premium is $12.00. what is the profit on this option is the stock price $180 at expiration?

← 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

You enter into a 1-year futures contract on a non-dividend paying stock when the stock price is $100 and the risk-free interest rate is 5% per annum. Six months later the stock price has fallen to $90, and the interest rate is 4% per annum. Which of the answers below is closest to the change in the futures price? Assume discrete compounding and discounting. Question 6Answer a. -12.34 b. -11.40 c. -10.00 d. -13.20

Awesome Company's stock is currently trading at 50 per share and the risk free rate is currently 6% per year. The price of a put option on Awesome stock with a strike price of 30 and 6 months to maturity is currently 1. Determine the price of a call option with the same strike price and maturity as the put option. No dividends will be paid during the remaining lifetime of the option. A. 20.96 B. 21.86 C. 22.70 D. 51.00

Profit on Option  You have purchased a call option contract on Dash common stock. The option has an exercise price  of $32.00 and Dash’s stock currently trades at $30.00. The option premium is quoted at $2.20.  Calculate your net profit on the option contract if Dash’s stock price rises to $35.00  and you exercise the option.  Calculate your net profit on the option contract if Dash’s stock price rises to $33.00  and you exercise the option.  c-1. If the stock price is $31.00, what would be the gain or loss if    you exercise or not exercise the option.  c-2. Based on your answers above would it be more profitable    to exercise the option or not exercise the option?

If you are long 2 contracts on 1-year TSLA call option with strike price of $400, what will be your payoff at expiry if the TSLA price at that time is (i) $200 , (ii) $450 , and (iii) $1000  . 1 contract is 100 shares.