Assuming there's a July call option on ABC.Inc with a strike price of $35 is also priced at a $0.75 premium. Right now the stock is priced at $30 per share and you write the call option for $0.75. Then the stock price goes to $33, so what is your total ($) gain or loss per share?
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Assuming there's a July call option on ABC.Inc with a strike price of $35 is also priced at a $0.75 premium. Right now the stock is priced at $30 per share and you write the call option for $0.75. Then the stock price goes to $33, so what is your total ($) gain or loss per share?
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- Suppose that a March call option to buy a share for $50 costs $2.50 and is held until March. The holder of the option will gain if the price of the stock is above 52.50 in March. True or False?Assuming that a September put option to buy a share for $100 costs $4.50 and is held until September. Under what circumstances will the holder of this option make a profit? Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.Suppose that a June call option to buy a share for $65 costs $3.5 and is held until June. Under what circumstances will the holder of the option make profit Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.
- Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and the premium is $3. If, at expiration, the stock is selling for $64 per share, what are your call options worth? What is your net profit?5) The current price of UCD Inc. is $15 per share; put options and call options on the stock both have a strike price of $15 and are selling for $0.75 per option. a) Suppose on the expiration date the price of UCD Inc. ends up being $18 per share. What is the profit/loss on a portfolio that has 1 share of stock and a long 1 put option? What about one that has 1 share of stock and is a short 1 call option? b) Suppose someone had bought 50 call options and the price ends up being $18 per share. What would be the profit/loss on that?You sell a put option on a stock for $4 with a strike price of $30. The stock currently sells for $28. If the stock goes up to $35 what is your net profit or loss?
- In follow an Ito process with >0, a stock is worth $80 today, if the price of an option that pays the holder $2 exactly the first time the stock price reaches $200, what is the price of an option? Show all calculation.Suppose you purchase 20 call contracts on SAMSONG Co. stock. The strike price is $120, and the premium is $8. If the stock is selling for $140, $128, $120 per share at expiration, what are your call options worth? What is your net profit?Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and expirations of 6 months. What will be the profit to an investor who buys the call for $4 in the following scenarios for stock prices in 6 months? What will be the profit in each scenario to an investor who buys the put for $6?a. $40b. $45c. $50d. $55e. $60
- Suppose you wrote a European put option on RDNW with an exercise of $30 and premium of $2.7. What would be your profit (per share) if the stock price at the expiration date is $26?Suppose the price of a share of Google stock is $500. An April call option on Google stock has a premium of $5 and an exercise price of $500. The holder of the call option will earn a profit if the price of the share A. increases to $504. B. decreases to $490. C. increases to $506. D. decreases to $496.Suppose that both a call option and a put option have been written on a stock with an exerciseprice of $40. The current stock price is $42, and the call and put premiums are $3 and $0.75,respectively. Calculate the profit to positions of both the short call and the long put with an expiration day stock price of $43.