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A trader holds the stock APPLE with position 200 in February. He expected that the price will not be higher than $200 at the end
A trader holds the stock APPLE with position 200 in February. He expected that the price will not be higher than $200 at the end of May. Then he decided to trade an option (Covered called) to earn the premium. AAPL Select an option below C172.14 X APR 14 '22 5 DAYS MAY 20 22 41 DAYS JUN 17 22 69 DAYS MORE TABBED VIEW PUT/CALL 8 STRIKES SMART AAPL 100 CALLS PUTS IV: 29.1% STRIKE BID X ASK VOLUME OPTN... DELTA BID X ASK VOLUME OPTN ... DELTA 17.25 x 17.55. 81 9.69K 0.802 155 2.31 x 2.38 3.01K 18.9K -0.201 179 5.84K 0.725 160 3.30 x 3.45 6.74K 35.5K -0.279 13.30 x 13.60. 9.70 x 9.95 + 584 8.73K 0.628 165 +4.75 x 4.90. 1.99K 32.6K -0.375 6.70 x 6.85 + 2.16K 19.7K 0.513 6.70 x 6.85. 2.36K 38.0K -0.489 170 175 4.30 x 4.40. 4.60K 25.4K 0.389 9.25 x 9.45 + 657 16.5K -0.612 2.57 x 2.66 + 6.27K 45.3K 0.273 180 * 12.40 x 12.75 + 93 7.37K -0.729 1.45 x 1.52 1.60K 50.2K 0.176 185 16.20 x 16.80 4 2.87K -0.825 0.83 x 0.85. 2.12K 31.8K 0.109 190 * 20.55 x 21.15 31 1.58K -0.892 The strike price is $190. The premium is the mid-price of the bid-ask price, and the number of positions is 2. a) What is the type of the option? (1) Long Call / (2) Short Call (3) Long Put (4) Short Put b) What is the option's moneyness? (1) In-the-money / (2) At-the-money (3) Out-of-money c) What is the break-even point of the option? d) If the option will not be executed at expiration date, how much premium in total he receives? (Ignore the administration cost) Write your answer as a ten-digit number for Q5 a b d U
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