Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1(A)Draw a diagram of Long XYZ April 55 Put now and at Expiration. Show profit/loss, time value, intrinsic value and Break-even price (BE) and profit
1(A)Draw a diagram of Long XYZ April 55 Put now and at Expiration. Show profit/loss, time value, intrinsic value and Break-even price (BE) and profit and loss potentials.
(B)Draw a diagram of short XYZ July 45 Put now and at Expiration. Show profit/loss, time value, intrinsic value and Break-even price (BE) and profit and loss potentials
Options Use the stock price and option matrix to answer the following questions. XYZ: Bid-$50.00 Ask-$50.05 Last-$50.00, numbers in ( ) are days to Expiration. Calls XYZ Puts April (34) July (125) A Strike April (34) A July (125) A Bid/Ask Bid/Ask Bid/Ask Bid/Ask 15/15.25 99 15/16.00 98 35 0.05/0.08 -1 0.10/0.15 -2 10/10.35 99 11/11.50 91 40 0.05/0.10 -1 0.30/0.55 -9 5.40/5.65 86 7.40/7.65 77 45 0.25/0.40 -14 1.40/1.65 -23 2.40/2.65 55 4.50/4.75 59 50 1.75/2.00 -45 3.40/3.65 -41 0.55/0.65 22 2.45/2.70 40 55 5.15/5.40 -78 6.25/6.65 -60 0.05/0.15 5 1.20/1.45 20 60 9.90/10.30 -95 10/10.60 -80 Options Use the stock price and option matrix to answer the following questions. XYZ: Bid-$50.00 Ask-$50.05 Last-$50.00, numbers in ( ) are days to Expiration. Calls XYZ Puts April (34) July (125) A Strike April (34) A July (125) A Bid/Ask Bid/Ask Bid/Ask Bid/Ask 15/15.25 99 15/16.00 98 35 0.05/0.08 -1 0.10/0.15 -2 10/10.35 99 11/11.50 91 40 0.05/0.10 -1 0.30/0.55 -9 5.40/5.65 86 7.40/7.65 77 45 0.25/0.40 -14 1.40/1.65 -23 2.40/2.65 55 4.50/4.75 59 50 1.75/2.00 -45 3.40/3.65 -41 0.55/0.65 22 2.45/2.70 40 55 5.15/5.40 -78 6.25/6.65 -60 0.05/0.15 5 1.20/1.45 20 60 9.90/10.30 -95 10/10.60 -80Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started