Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nov 13, 2018 @ 12:45 ET Last 57.74 Change +1.04 Please help me learn how to answer the questions in the second pic Calls Puts
Nov 13, 2018 @ 12:45 ET | ||
Last 57.74 Change +1.04 |
Please help me learn how to answer the questions in the second pic
Calls Puts Open Calls Last Chg Bid Ask Vol Root Strike Puts Last Chg Bid Ask Vol Open Int Int 0 28.6 29 0 DWDP 0.09 0 0 0 24.2 28.35 0 0 0 DWDP 0.33 0.06 0.11 0 2 16.75 23 24.95 0 1 DWDP 0.3 0.1 0.14 0 381 20.8 0 0 DWDP 0.45 0.14 0.18 0 5 23.25 19.15 12.75 18.7 0 0 14 DWDP 0.54 0.21 0.25 0 199 15.7 16.45 0 43 DWDP 0.26 0.3 0.34 0 223 16.75 14.4 24.3 14.1 0 1 DWDP 0.47 0.02 0.44 0.49 3 257 10.91 11.8 12.15 0 1 DWDP 0.76 -0.04 0.65 0.71 5 1807 9.25 9.65 9.95 0 170 DWDP 0.82 0.96 1.03 0 0 545 7.08 7.6 7.85 0 0 DWDP 1.61 1.43 1.48 0 1857 592 719 5.1 5.85 5.95 0 DWDP 2.03 2.09 2.18 0 1312 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 4.13 0.37 4.25 4.35 9 343 DWDP 30 15-Mar-19 32.5 15-Mar-19 35 15-Mar-19 37.5 15-Mar-19 40 15-Mar-19 42.5 15-Mar-19 45 15-Mar-19 47.5 15-Mar-19 50 15-Mar-19 52.5 15-Mar-19 55 15-Mar-19 57.5 15-Mar-19 60 15-Mar-19 62.5 15-Mar-19 65 15-Mar-19 67.5 15-Mar-19 70 15-Mar-19 72.5 15-Mar-19 75 15-Mar-19 77.5 15-Mar-19 80 15-Mar-19 85 15-Mar-19 90 15-Mar-19 3.32 3 3.1 0 1134 2.94 0.32 2.91 3.05 40 1452 DWDP 4.34 -0.55 4.15 4.3 3 3 630 1.88 0.17 1.91 1.97 11 879 DWDP 5.65 5.65 5.8 0 0 642 1.2 0.22 1.18 1.24 32 4467 DWDP 8.1 7.4 7.7 0 694 0.65 0.05 0.7 0.75 4 3544 DWDP 8.3 9.4 9.75 0 254 0.32 0.39 0.44 0 0 3969 DWDP 11.84 11.55 11.95 0 256 0.22 0.19 0.25 0 1962 DWDP 15 14 14.35 0 265 -0.01 0.1 0.16 1 880 DWDP 17.5 16.4 16.8 0 59 0.09 0.05 0.05 0.09 0 367 DWDP 18.8 20.35 0 0 0.05 0.02 0.06 0 438 DWDP 19.45 23.65 0 0 0 0.03 0.03 0 253 DWDP 25.55 28.45 0 0 0.05 0.02 0 106 DWDP 31.2 31.75 0 0 For the above calls and puts on DowDuPont (DWDP) stock (currently at $57.74 per share), please answer the following questions: 1) If the "Open Interest (Int)" for the March 55 Call is 719 contracts, how many shares of stock does this represent? 2) The last (or settle or closing) price for the March 65 call was $1.20. How much of this premium is speculative (or time) value? 3) What is the speculative value of the March 60 put? 4) What is the intrinsic Value of the March 50 50 call? 5) Suppose you bought both a call and a put today for March at a common strike price of 57.50 and paid the ask price for each. How much would be your total profit or loss if the stock price at expiration in March turned out to be 64? (This strategy is called a "straddle"). Remember each contract is for 100 shares! (Show your work on this one for partial credit). Calls Puts Open Calls Last Chg Bid Ask Vol Root Strike Puts Last Chg Bid Ask Vol Open Int Int 0 28.6 29 0 DWDP 0.09 0 0 0 24.2 28.35 0 0 0 DWDP 0.33 0.06 0.11 0 2 16.75 23 24.95 0 1 DWDP 0.3 0.1 0.14 0 381 20.8 0 0 DWDP 0.45 0.14 0.18 0 5 23.25 19.15 12.75 18.7 0 0 14 DWDP 0.54 0.21 0.25 0 199 15.7 16.45 0 43 DWDP 0.26 0.3 0.34 0 223 16.75 14.4 24.3 14.1 0 1 DWDP 0.47 0.02 0.44 0.49 3 257 10.91 11.8 12.15 0 1 DWDP 0.76 -0.04 0.65 0.71 5 1807 9.25 9.65 9.95 0 170 DWDP 0.82 0.96 1.03 0 0 545 7.08 7.6 7.85 0 0 DWDP 1.61 1.43 1.48 0 1857 592 719 5.1 5.85 5.95 0 DWDP 2.03 2.09 2.18 0 1312 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 15-Mar-19 4.13 0.37 4.25 4.35 9 343 DWDP 30 15-Mar-19 32.5 15-Mar-19 35 15-Mar-19 37.5 15-Mar-19 40 15-Mar-19 42.5 15-Mar-19 45 15-Mar-19 47.5 15-Mar-19 50 15-Mar-19 52.5 15-Mar-19 55 15-Mar-19 57.5 15-Mar-19 60 15-Mar-19 62.5 15-Mar-19 65 15-Mar-19 67.5 15-Mar-19 70 15-Mar-19 72.5 15-Mar-19 75 15-Mar-19 77.5 15-Mar-19 80 15-Mar-19 85 15-Mar-19 90 15-Mar-19 3.32 3 3.1 0 1134 2.94 0.32 2.91 3.05 40 1452 DWDP 4.34 -0.55 4.15 4.3 3 3 630 1.88 0.17 1.91 1.97 11 879 DWDP 5.65 5.65 5.8 0 0 642 1.2 0.22 1.18 1.24 32 4467 DWDP 8.1 7.4 7.7 0 694 0.65 0.05 0.7 0.75 4 3544 DWDP 8.3 9.4 9.75 0 254 0.32 0.39 0.44 0 0 3969 DWDP 11.84 11.55 11.95 0 256 0.22 0.19 0.25 0 1962 DWDP 15 14 14.35 0 265 -0.01 0.1 0.16 1 880 DWDP 17.5 16.4 16.8 0 59 0.09 0.05 0.05 0.09 0 367 DWDP 18.8 20.35 0 0 0.05 0.02 0.06 0 438 DWDP 19.45 23.65 0 0 0 0.03 0.03 0 253 DWDP 25.55 28.45 0 0 0.05 0.02 0 106 DWDP 31.2 31.75 0 0 For the above calls and puts on DowDuPont (DWDP) stock (currently at $57.74 per share), please answer the following questions: 1) If the "Open Interest (Int)" for the March 55 Call is 719 contracts, how many shares of stock does this represent? 2) The last (or settle or closing) price for the March 65 call was $1.20. How much of this premium is speculative (or time) value? 3) What is the speculative value of the March 60 put? 4) What is the intrinsic Value of the March 50 50 call? 5) Suppose you bought both a call and a put today for March at a common strike price of 57.50 and paid the ask price for each. How much would be your total profit or loss if the stock price at expiration in March turned out to be 64? (This strategy is called a "straddle"). Remember each contract is for 100 shares! (Show your work on this one for partial credit)
Step 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