Suppose you sold stock XYZ December RM8 call options for40 sen. The price of XYZ stock on the day of trading was RM6.50, what would most likely happen and why?
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Suppose you sold stock XYZ December RM8 call options for40 sen. The price of XYZ stock on the day of trading was RM6.50, what would most likely happen and why?
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- Suppose you sold stock XYZ December RM8 call options for 40 sen. The price of XYZ stock on the last day of trading was RM6.50, what would most likely happen and why?Suppose you bought AirAsia stock maturing in December RM8 put options for 40 sen. What is the underlying assets?Use the table for the question(s) below. Consider the following two quotes for XYZ stock: November 11th November 18th Ask: 25.25 Ask: 26.00 Bid: 25.20 Bid: 25.93 How much would you have to pay to purchase 100 shares of XYZ stock on November 18th? A) $2520 B) $2525 C) $2593 D) $2600
- One invests 100 shares of IBM stocks today. He expects that there couldbe five possible opening prices with the respective probabilities at 9:30 a.m. in NYSE thenext day. The following table lists these possible opening prices and their respectiveprobabilities:Outcome 1Outcome 2Outcome 3Outcome 4Outcome 5Possible Opening Price ofIBM,Xi$182.11$163.88$180.30$216.08$144.92Probability,pi13%19%33%17%18%LetXrepresent the five random opening prices of IBM the next day, calculate the mean,variance, and the standard deviation ofX. Make your comments on the results you obtain.(Keep two decimals)iAssume a stock trades at $109, the volatility of the stock is 21%, and the risk - free interest rate is 4.4%. What is the Gamma of a $107 strike call option expiring in 120 days if the spot price of the stock increases by $1? Please answer to 2 decimal places. answer is.03 pleaseConsider a December 310 call and a December 310 put, both on a stock that is currently selling for $340/share. Calculate how much these options are in or out of the money.
- Suppose you bought stock XYZ December RM8 put options for40 sen. What is the strike price? Suppose you bought stock XYZ December RM8 put options for 40 sen. What is the premium? Suppose you bought stock XYZ December RM8 put options for 40 sen. Did you buy a call or put options?Favorita Candy’s stock is expected to earn $3.50 per share this year. Its P/E ratio is 21. What is the stock price? (Round your answer to 2 decimal places.)On July 1, an investor holds 100,000 shares of a certain stock. The market price is $100 per share and the beta of the stock is 1.5. The investor would like to change the beta of the stock portfolio to 1.25 using the September S&P 500 E-Mini stock index futures contract. The futures price is 4,500 and one contract is for delivery of $50 times the index. What strategy should the investor follow?
- Both a call and a put currently are traded on stock XYZ; both have strike prices of $60 and expirations of 6 months.a. What will be the profit to an investor who buys the call for $5 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60. b. What will be the profit to an investor who buys the put for $7 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60Assume a stock trades at $90, the volatility of the stock is 32%, and the risk-free interest rate is 3.7%. What is the Gamma of a $94 strike call option expiring in 217 days if the spot price of the stock increases by $1? Please answer to 2 decimal places. Answer: 0.26Please answer both questions What is the risk premium for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. What is the expected return based on CAPM for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. The Home Depot, Inc. (HD) NYSE - NYSE Delayed Price. Currency in USD 264.55 -0.26 (-0.10%) At close: December 11 4:00PM EST summary Company Outlook Chart Conversations Stal Previous Close 264.81 Market Cap 284.815B Open 263.36 Beta (5Y Monthly) 1.05 Bid 264.15 x 1000 PE Ratio (TTM) 22.88 Ask 264.55 x 800 EPS (TTM) 11.56 Day's Range 262.65 - 265.36 Eamings Date Feb 23, 2021 52 Week Range 140.63 - 292.95 Forward Dividend & Yield 6.00 (2.27%) Volume 3,454,512 Ex-Dividend Date Dec 02, 2020 Arg. Volume 3,631,762 ly Target Est 305.06