Question
7(a)-7(d) based on the following. 7(a) Will put buyer exercise the put when market price on July 19 is $90? Please answer yes or no.
7(a)-7(d) based on the following.
7(a) Will put buyer exercise the put when market price on July 19 is $90? Please answer yes or no. (b) Will put buyer exercise the put when market price on July 19 is $130? (c) how much is total profit/loss for put writer( who writes a put) if the market price on July 19 is $75? each option contract is 100 shares. (d) How much is the total profit/loss for a put writer when market price on July 19 is $140? each option contract is 100 shares. PLEASE SHOW ALL WORK IN EXCEL THANK YOU!!
Suppose you write a IBM put which was sold for $7.00 on Apr 9 2019 with exercise price X=$95, on Expiration date July 19,2019, given different possibilities of market prices, please answer. Hint: Profit/ loss is not payoff. Each put is 100 shares.
ST: Market price of IBM 19 July 2013 | Will put buyer exercise the put?(yes or no) | Dollar profit/loss to put writer |
0 |
|
|
80 |
|
|
90 |
|
|
100 |
|
|
110 |
|
|
120 |
|
|
130 |
|
|
140 |
|
|
150 |
|
|
160 |
|
|
170 |
|
|
180 |
|
|
190 |
|
|
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