Assume you are an option buyer. Strike price is $44 and option premium is $3. You will pay $44 when you exercise the option. Select one: O True O False
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Q: put option with $3 of premium has an exercise price of $45 . What is the net value of this option at…
A:
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Q: Consider a call option selling for Ksh.14 in which the exercise price is Ksh.162 and the price of…
A: Answer Call Option premium = Ksh.14 price of the underlying = Ksh.164.
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Q: What is the intrinsic and time value for the put option premium with a strike price of $70/barrel…
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A: The question is based on the concept of call put parity theorem.
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Q: If a call option has a strike price of $.45 and premium cost of $.03, and at the time of the…
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Q: Suppose a put option has X-103 and Premium=8. As a seller of the put, what is the minimum…
A: “Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the…
Q: Label the following for this diagram a. Name of options payoff b. identify whether positive or…
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A: Given that, K is the exercise price, S is stock price at time 0.
Q: which one is corect please confirm? Q8: An option that gives the owner the right to sell a…
A: There are two types of option Call option and Put Option
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Q: fill the missing words: a. For ( ) options, when the spot price is ( ) than(or equal to)the…
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A: Put option is in the money when prices are below the strike price of put.
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Q: Assume you are an option buyer. The strike price is $44 and the option premium is $3. You will pay $…
A: An option is a derivative contract that gives the right but not an obligation to buy or sell the…
Q: The investor Y decides to: Buy a call option for $5 with $200 as strike price Sell a put option…
A: Call Bought for $5 at $ 200 Put sold for $ 10 at $100 Initial Inflow = $10-$5 = $5
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A: Stock Price S $ 50.00 Strike Price K $…
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Q: Assume that price of a USDINR call option is quoted as INR 0.25 / 0.27 (bid price / ask price).…
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Q: Assume that K=61, St =65, t = 0.25 (i.e. time to expiry is 3 months), and the risk-free rate is…
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Q: Consider a call and a put options with the same strike price and time to expiry. Given that the…
A: The put-call parity: When the strike price on an underlying asset and the time to expiry are the…
Q: The speculator buys one put option at a strike price of $70/barrel and expiry date October 2021 for…
A: Buyer of put option gets the option to sell the underlying at a specified price for which a premium…
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Q: The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the…
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- The investor Y decides to: Buy a call option for $5 with $200 as strike price Sell a put option for $10 with $100 as strike price a)Calculate the result of the investor if the market price is $60 b)Calculate the result of the investor if the market price is $260 c)Represent the results of the investor for both cases a) and b) in the same figureSuppose you combine two option contracts as follows. You buy a call option on a stock with an exercise price of $65 for a premium of 9$. At the same time you sell a call option on the same stock with an exercise price of $75 for a premium of $4. Both calls expire at the same time. The stock sells currently at $72. Answer the following questions about this investment strategy: 1. Determinethevalueatexpiration(thepayoffs)andtheprofitunderthefollowingoutcomes: a. The price of the stock at expiration is $78b. The price of the stock at expiration is $69c. Thepriceofthestockatexpirationis$62 2. Determine the following:a. The maximum profit b. The maximum loss 3. Determinethebreakevenstockpriceatexpiration(thestockpriceforwhichyourstrategydeliversno profit and no loss). 4. Depictthepayoffandprofitdiagramsofyourinvestmentstrategy.Consider a call option selling for Ksh.14 in which the exercise price is Ksh.162 and the price of the underlying is Ksh.164. Determine the value at expiration and the profit for a buyer under the following outcomes: The price of the underlying at expiration is Ksh.164. The price of the underlying at expiration is Ksh.158.
- An investor buys a put option at a premium of $4.6 with an exercise price of $30. At what stock price will the investor break even on the purchase of the put option?The investor X decides to: Buy a call option for $10 with $100 as strike price Buy a call option for $15 with $90 as the strike price Sell a put option for $10 with $100 as the strike price Buy a put option for $15 with $120 as the strike price a)Calculate the result of the investor if the market price is $60 b)Calculate the result of the investor if the market price is $160 c)Represent the results of the investor for both cases a) and b) in the same figureA. An option is trading at $5.03. If it has a delta of -.56, what would the price of the option be if the underlying increases by $.75? What would the price of the option be if the underlying decreases by $.55? B. What type of option is this and how? C. With a delta of -.56, is this option ITM, ATM or OTM and how?
- An investor makes the following three investments: (i) the purchase of a stock for £38(ii) the purchase of a put option for £0.50 with a strike price of £35 and (iii) the sale ofa call option (ie. writing a call option) for £0.50 with a strike price of £40 .(a)What is the intrinsic value and the time value of the put option, What is the maximum profit and loss for this position?Assume that price of a USDINR call option is quoted as INR 0.25 / 0.27 (bid price / ask price). Given this quote, at what price could a company buy the call option?Assume you are a speculator who purchased a IPE Brent Crude call option contract at an exercise price of $52 by paying a premium of $2. If the price of the underlying asset moves to $ 48 what is your maximum loss or gain ? If the price of the underlying asset moves to $ 56 what is your maximum loss or gain ?
- An investor makes the following three investments: (i) the purchase of a stock for £38(ii) the purchase of a put option for £0.50 with a strike price of £35 and (iii) the sale ofa call option (ie. writing a call option) for £0.50 with a strike price of £40 .(a) What is the intrinsic value and the time value of the put option and what is the maximum profit and loss for this position?An investor makes the following three investments: (i) the purchase of a stock for £38(ii) the purchase of a put option for £0.50 with a strike price of £35 and (iii) the sale ofa call option (ie. writing a call option) for £0.50 with a strike price of £40 .(a) What is the intrinsic value and the time value of the put option.(b) What is the maximum profit and loss for this position? help me with part (b) please.An option is trading at $3.45. If it has a delta of .78, what would the price of the option be if the underlying increases by $.75? A. What would the price of the option be if the underlying decreases by $.55? B. What makes this a call option? C. With a delta of .78, is this option ITM, ATM or OTM and how?