You purchased two $35 call contracts at $3.40 per option. You exercised the option on expiration day when the stock was $43. What was your profit and rate of return on investment?
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You purchased two $35 call contracts at $3.40 per option. You exercised the option on expiration day when the stock was $43. What was your profit and rate of
Call Option is a financial derivative contract which givers option buyer a right not obligation to buy asset at price fixed at time of making contract.
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- You shorted a call option on Intuit stock with a strike price of $38. When you sold (wrote) the option, you received $3. The option will expire in exactly three months' time. a. If the stock is trading at $49 in three months, what will your payoff be? What will your profit be? b. If the stock is trading at $35 in three months, what will your payoff be? What will your profit be? c. Draw a payoff diagram showing the payoff at expiration as a function of the stock price at expiration. d. Redo c, but instead of showing payoffs, show profits. Question content area bottom Part 1 a. The payoff of the short is $ short is $ enter your response here. enter your response here, and the profit of the. Please step by step answer.You sold a put contract on EDF stock at an option price of $.25 and an exercise price of $22.50. The option expires today when EDF stock is selling for $21.70 a share. Ignoring transactions costs and taxes, what is your total profit on this investment?One of the categories of options available to investors and speculators is LEPOs. Assuming 7.00 per cent margin, what would be the percentage return and dollar profit to an investor who purchased one LEPO (for 1000 shares) for a premium of $26 220 and later closed out the position when the LEPO premium was $28 430?
- 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?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?You purchase 36 call options on Greshak Corp. to increase returns on your equity portfolio. The three month calls specify the strike price is $48.00 and require a premium of $3.25. If Greshak's stock is trading at $52.00 at the time the options expire, what are your options worth? What was your net profit (in dollars and as an annualized percentage)? What would your profit in dollars and as an annualized percentage had been if the stock instead sold for $51.00/share at expiration? How about $50.00/share?
- Suppose you decided to enter into a futures contract involving a stock that sells for Php888.75 per share and you purchased 1,000 shares of this stock. The initial margin requirement is 25% of the price and the maintenance margin requirement per contract is 20% of the stock price. Assume that you went 5 long contracts. (Show complete solution for each item.) A. How much would you have to pay in initial margin? B. How much is the maintenance margin requirement value? C. What is the price of the stock when maintenance margin will be hit? Interpret the result.You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $55. What is your net profit on this option if stock price is $43 at expiration?You have taken a long position in a call option on IBM common stock. The option has an exercise price of $176 and IBM’s stock currently trades at $180. The option premium is $5 per contract. What is your net profit on the option if IBM’s stock price increases to $190 at expiration of the option and you exercise the option? What is your net profit if IBM’s stock price decreases to $170?
- You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $56. What is your net profit on this option if stock price is S45 at expiration? Moving to another question will save this response.Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker . If the initial margin is 70 % , what is the interest payment on amount you borrowed from the broker if interest rate is 9 % ?Explain this step by step: Gerald purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40. At expiration, the stock price was $42.25 per share. What is his percentage return? What is the percentage return if the stock price at expiration is $39.05? What is the percentage return if the stock price at expiration is $36.18?
