FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $21. The stock price is

On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $21. The stock price is $20.88 and the option price is $5.15. At the expiration, the stock price becomes $18.62. What is the option profit to the trader? If it is a loss, then enter a negative value.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance Basic Tools For Nonfinancial Managers

Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin

5th Edition

1284118215, 978-1284118216

More Books

Students also viewed these Finance questions

Question

★★★★★
In 2011, the average car in the United States was driven 13.5 thousand miles, as reported by the Federal Highway Administration in Highway Statistics. On the Weiss-Stats site, we provide last year's...

Answered: 1 week ago

Question

★★★★★
For each of the following accounts indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account. 1. Accounts Payable. 2. Advertising Expense. 3....

Answered: 1 week ago

Question

★★★★★
=+1. For the following observational studies, indicate whether they are prospective or retrospective.

Answered: 1 week ago

Question

★★★★★
The Brugger Corp. owned a farm, operated by Jason Weimer, who acted as the companys business agent. Tri-Circle, Inc. was a farm equipment company. On behalf of Brugger, Weimer offered to buy from...

Answered: 1 week ago

Question

★★★★★
Alteryx - Which of the following enable a user to document workflows? ( Select THREE options. ) A . Annotation B . Comment C . Text. Input D . Tool Container E . Summarize

Answered: 1 week ago

Question

★★★★★
7. The cost, in dollars, to produce modular cabinets is modeled by C, a differentiable function of the time, In hours, it takes to produce the cabinets. Of the following, which is the best...

Answered: 1 week ago

Question

★★★★★
1. Describe the role of forensic anthropology in criminal investigations. (5 points) 2. Explain the difference between class and individual characteristics in forensic evidence. Provide examples. (5...

Answered: 1 week ago

Question

★★★★★
1. Discuss the importance of bioinformatics in modern biotechnology. Include examples of its applications in the field. (10 points) 2. Evaluate the potential benefits and risks associated with the...

Answered: 1 week ago

Question

★★★★★
1. Describe the process of gel electrophoresis and its application in biotechnology. (5 points) 2. Explain how monoclonal antibodies are produced. (5 points) 3. Discuss the ethical considerations...

Answered: 1 week ago

Question

★★★★★
What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago

Question

★★★★★
Question 1: Discuss the causes and consequences of the Industrial Revolution in Europe. How did it transform European societies and economies? Question 2: (20 marks) Examine the causes, key events,...

Answered: 1 week ago

Question

★★★★★
Understand the importance of having a department manager remain visible and available to the staff

Answered: 1 week ago

Question

★★★★★
Understand the department managers key role in employee retention

Answered: 1 week ago

Question

★★★★★
Understand the importance of a properly prepared position or job description

Answered: 1 week ago

Previous Question Next Question