Previously, you purchased a European call option on Parlicoot Inc shares. The option has just matured. The strike price on the option is 93.93, while the current stock price is 58.34. What is your payoff? 0.00 1.61 35.59 -35.59
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Previously, you purchased a European call option on Parlicoot Inc shares. The option has just matured. The strike price on the option is 93.93, while the current stock price is 58.34. What is your payoff?
0.00 |
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1.61 |
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35.59 |
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-35.59 |
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- Previously, you purchased a European put option on Parlicoot Inc shares. The option has just matured. The strike price on the option is 98.54, while the current stock price is 93.04. What is your payoff? 1.06 5.50 0.00 -5.50Suppose you wrote a European put option on RDNW with an exercise of $30 and premium of $2.0. What would be your profit (per share) if the stock price at the expiration date is $26? Your Answer: AnswerYou have purchased a put option on Pfizer common stock. The option has an exercise price of $45 and Pfizer's stock currently trades at $47. The option premium is $0.60 per contract. a. What is your net profit on the option if Pfizer's stock price does not change over the life of the option? b. What is your net profit on the option if Pfizer's stock price falls to $41 and you exercise the option? (For all requirements, negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) a Net profit b. Net profit per share per share
- Suppose you wrote an European call option on Stock A with an exercise of $40 and call premium of $3.3. What would be your profit if the stock price at the expiration date is $38?You buy a put option on IBM common stock. The option has an exercise price of $136 and IBM’s stock currently trades at $140. The option premium is $5 per contract.a. What is your net profit on the option if IBM’s stock price increases to $150 at expiration of the option and you exercise the option? b. How much of the option premium is due to intrinsic value versus time value?c. What is your net profit if IBM’s stock price decreases to $130?d. Draw the payout diagram at maturity on a short put option position, option premium = $2, and the same exercise price... (Please give the full solution I will upvote)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?
- You have written a call option on Walmart common stock. The option has an exercise price of $81, and Walmart’s stock currently trades at $79. The option premium is $1.60 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmart’s stock price decreases to $77 and stays there until the option expires? c. What is your net profit on the option if Walmart’s stock price increases to $87 at expiration of the option and the option holder exercises the option?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?Suppose that a European call option to buy a share for $100.00 costs $5.00 and is held untilmaturity. Under what circumstances will the holder of the option make a profit? Underwhat circumstances will the option be exercised? Draw a diagram illustrating how the profitfrom a long position in the option depends on the stock price at maturity of the option. Suppose that a European put option to sell a share for $60 costs $8 and is held untilmaturity. Under what circumstances will the seller of the option (the party with the shortposition) make a profit? Under what circumstances will the option be exercised? Draw adiagram illustrating how the profit from a short position in the option depends on thestock price at maturity of the option.
- Q1. You have purchased a call option on Johnson & Johnson common stock. The option has an exercise price of $57.50 and J & J’s stock currently trades at $58.93. The option premium is $2.17 per contract. Calculate your net profit on the option if J & J’s stock price rises to $62.50 and your exercise the option. Calculate your net profit on the option if J & J’s stock price falls to $58.00 and your exercise the option. If J & J’s stock price falls to $58.00 show that it is more profitable to exercise than not exercise the option you have purchased.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. How much of the option premium is due to intrinsic value versus time value?Suppose that a European call option to buy a share for $ 90.00 costs a . Under what circumstances will the SELLER of the option make a profit ? \$4.00 and is held until maturity . ( DRAW the GRAPH to show ALL answers ) b . when will the option be exercised ( at what price , show on graph ) ? c . What is the Maximum profit for SELLER and at what stock price ? d . What is the Maximum loss for SELLER and at what stock price ? e . What will be profit / loss for SELLER if St is 150 ?