Question
1. If the current stock price is $50, the intrinsic value of a put option with an exercise price of 40 is -10 0 10
1. If the current stock price is $50, the intrinsic value of a put option with an exercise price of 40 is
-10 | ||
0 | ||
10 | ||
40 | ||
none of the above |
2. Which of the following call options (X is the exercise price and T is time to maturity)has the highest value (all options are on the same underlying stock)?
X=150; T=.5 | ||
X=150; T=.25 | ||
X=120; T=.25 | ||
X=120; T=.5 | ||
We cant tell without further information |
3. Which of the following put options (X is the exercise price and T is time to maturity) has the highest value (all options are on the same underlying stock)?
X=150; T=.5 | ||
X=150; T=.25 | ||
X=120; T=.25 | ||
X=120; T=.5 | ||
We cant tell without further information. |
4. Suppose you own the 600 March put and have sold the 600 March call, both options on the same underlying stock. If the stock price at the expiration date = 580, what is your payoff?
-20 | ||
0 | ||
20 | ||
600 | ||
none of the above |
5. The spot price of rhodium is $1000 per ounce. The one-year riskless rate is 0.18%. What is the one-year futures price of rhodium assuming there is no additional cost or benefit of holding this commodity?
$998.20 | ||
$1,000 | ||
1001.8 | ||
none of the above |
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