Based on the price-path in the graph below, please identify the most suitable response to each...
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Based on the price-path in the graph below, please identify the most suitable response to each of the option scenario presented. $12.00 $11.50 $11.00 $10.50 $10.00 what $9.50 $9.00 $8.50 $8.00 Option type: Barrier knock-in call Option strike: $10.00 Barrier: $8.60 Barrier condition: Any 5 days beyond Opening price: $10.00 73 81 89 97 105 113 121 129 137 145 153 161 169 177 185 201 209 217 225 233 241 249 257 265 273 281 289 297 Closing price: $11.16 Considering all events during the life of this option, and the final price of the underlying, this option will be exercised because The final payoff of this option to the holder will be The initial cost of this option will be an equivalent continuous barrier option. lapse be knocked out be knocked in Option type: Barrier knock-in call Option strike: $10.00 Barrier: $8.60 Barrier condition: Any 5 days beyond Opening price: $10.00 Closing price: $11.16 Considering all events during the life of this option, and the final price of the underlying, this option will be exercised because The final payoff of this option to the holder will be The initial cost of this option will be an equivalent continuous barrier option. lapse be knocked out be knocked in the barrier conditions were not met the barrier conditions were met and the option was ITM at expiry the barrier conditions were met the barrier conditions were met but the option was OTM at expiry it is at the money at expiry it is at the money at inception $1.16, minus any premium paid zero, minus any premium paid $1.16 the same price as more expensive than less expensive than Please put an answer in each box. Based on the price-path in the graph below, please identify the most suitable response to each of the option scenario presented. $12.00 $11.50 $11.00 $10.50 $10.00 what $9.50 $9.00 $8.50 $8.00 Option type: Barrier knock-in call Option strike: $10.00 Barrier: $8.60 Barrier condition: Any 5 days beyond Opening price: $10.00 73 81 89 97 105 113 121 129 137 145 153 161 169 177 185 201 209 217 225 233 241 249 257 265 273 281 289 297 Closing price: $11.16 Considering all events during the life of this option, and the final price of the underlying, this option will be exercised because The final payoff of this option to the holder will be The initial cost of this option will be an equivalent continuous barrier option. lapse be knocked out be knocked in Option type: Barrier knock-in call Option strike: $10.00 Barrier: $8.60 Barrier condition: Any 5 days beyond Opening price: $10.00 Closing price: $11.16 Considering all events during the life of this option, and the final price of the underlying, this option will be exercised because The final payoff of this option to the holder will be The initial cost of this option will be an equivalent continuous barrier option. lapse be knocked out be knocked in the barrier conditions were not met the barrier conditions were met and the option was ITM at expiry the barrier conditions were met the barrier conditions were met but the option was OTM at expiry it is at the money at expiry it is at the money at inception $1.16, minus any premium paid zero, minus any premium paid $1.16 the same price as more expensive than less expensive than Please put an answer in each box.
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Related Book For
Statistics For The Behavioral Sciences
ISBN: 9781111830991
9th Edition
Authors: Frederick J Gravetter, Larry B. Wallnau
Posted Date:
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