Question
5.A Jan 17, 2021, GM 40 strike put option has a premium of 4.30. GM shares are trading at 38.21. The quoted risk-free rate is
5.A Jan 17, 2021, GM 40 strike put option has a premium of 4.30. GM shares are trading at 38.21. The quoted risk-free rate is 1.45% on a discount basis. The spot price of oil is 55.70, and the 3-month forward future contract is 54.32. The GBP/USD spot is 1.2601, but the 3 months forward is 1.2632. What is the breakeven price for this stock option contract?
6.A 215 strike Jan 17, 2021 call option on AMGN is trading at 4.61. AMGN's stock is trading at 209.00. The quoted risk-free rate is 1.64% on a discount basis. The spot price of corn is 3.85, and the 3 month ahead futures price is 3.97. The USD/JPY spot is 108.57, and the 3 months forward is 107.75. What is the breakeven price?
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