Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. ABC MARKET VALUE = $52.85 CALLS PUTS STRIKE PRICE CHG PRICE PRICE CHG 7.15 0.25 $ 47.00 0.35 -0.03 5.25 0.15 $ 50.00 0.60

1.

ABC MARKET VALUE = $52.85
CALLS PUTS
STRIKE
PRICE CHG PRICE PRICE CHG
7.15 0.25 $ 47.00 0.35 -0.03
5.25 0.15 $ 50.00 0.60 -0.05
1.70 0.09 $ 53.00 1.48 -0.04
1.00 0.09 $ 56.00 4.35 -0.1
0.50 0.09 $ 59.00 7.25 -0.12

If you purchased the call contract with strike price of $47, and at the expiration date ABC is trading at 55, How much is your win or loss?

2.

APPLE MARKET VALUE = $118.37

CALLS

EXP DATE: DEC 4, 2020

PUTS

LAST PRICE

STRIKE PRICE

LAST PRICE

7.20

113.00

5.75

7.10

114.00

6.00

6.60

115.00

6.82

6.20

116.00

8.10

5.70

117.00

8.45

5.09

118.00

8.55

The intrinsic value of the call option contract with 117 strike price is?

3.

APPLE MARKET VALUE = $115.05

CALLS

EXP DATE: DEC 4, 2020

PUTS

LAST PRICE

STRIKE PRICE

LAST PRICE

7.10

113.00

5.75

7.10

114.00

6.00

6.60

115.00

6.82

6.20

116.00

8.10

5.70

117.00

8.45

5.09

118.00

8.65

If you sell the put contract with strike price of 116.00, what will be your profit or loss in the contract, if at expiration date the market value of AAPL is $109

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Strategy Inside China

Authors: Check-Teck Foo

1st Edition

9811328404,9811328412

More Books

Students also viewed these Finance questions