c-1. If you had bought the January put with exercise price $105, will you exercise your put? Yes O No c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.) Loss X Answer is complete but not entirely correct. $ (1.99) X
c-1. If you had bought the January put with exercise price $105, will you exercise your put? Yes O No c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.) Loss X Answer is complete but not entirely correct. $ (1.99) X
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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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question
Transcribed Image Text:c-1. If you had bought the January put with exercise price $105, will you exercise your put?
Yes
No
c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)
X Answer is complete but not entirely correct.
$ (1.99) X
Loss
Transcribed Image Text:Expiration
18-Jan-2019
18-Jan-2019
18-Jan-2019
8-Feb-2019
8-Feb-2019
8-Feb-2019
Strike
95
100
105
95
100
105
Call
7.65
3.81
1.45
9.50
5.60
3.08
Note: Microsoft stock on this day was $101.51.
Source: Compiled from data downloaded from Yahoo! Finance.
Put
0.98
2.20
4.79
2.86
3.92
6.35
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Transcribed Image Text:c-1. If you had bought the January put with exercise price $105, will you exercise your put?
Yes
No
c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)
X Answer is complete but not entirely correct.
$ (1.30) X
Loss
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