Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me. this 3 questions go togther. help me please. Question 11 Please refer to the attached quotes on currency options contracts for Swiss

please help me. this 3 questions go togther. help me please. image text in transcribed
image text in transcribed
image text in transcribed
Question 11 Please refer to the attached quotes on currency options contracts for Swiss Franc (CHF). Each contract includes CHF 62,500. The exercise price, and call and put premiums are reported as cents. Calls Puts Vol. Last Vol. Last 2.500 Swiss Francs-cents per unit. 19 Nov 1.41 19 Dec 39 0.71 795 Oct 15 0.34 80 Oct 131 0.38 80 Dec 3 1.30 01 Nov 18 0.50 01 Dec 1.67 0 Dec 50 0.36 1 Nov 700.00 If spot price for CHF is $0.805, which one of the following call options is out-of-the-money? 79 Nov Call 80 Oct Call 81 Dec Put 79 Dec Put Question 12 Please refer to the attached quotes on currency options contracts for Swiss Franc (CHF). Each contract includes CHF 62,500. The exercise price, and call and put premiums are reported as cents. Calls 2.500 Swiss Franc cents per unit. 39 0.71 Puts Vol. Last Vol. Last 1.41 15 0.34 19 Nov 79 Dec 7 Oct B0 Oct 80 Dec 81 NOV 81 Dec Dec Nov 131 0.38 3 1.30 18 0.50 50 0.36 700.00 The cost of buying one CHF call options contract with an exercise price of $0.81 which expires on the 3rd Wednesday of November is: $62.50 $625.00 $331.25 $53.00 Question 13 1p Please refer to the attached quotes on currency options contracts for Swiss Franc (CHF). Each contract includes CHF 62,500. The exercise price, and call and put premiums are reported as cents. Calls Puts Vol. Last Vol. Last 22.500 Swiss Franc-cents per unit. 79 Nov S 1.41 79 Dec 39 0.71 7944 Oct 80 Oct 30 Dec 3 1.30 15 0.34 0.38 18 8i Nov 81 Dec B2 Dec * B4 Nov 50 70 0.50 0.36 0.09 Suppose you bought one CHF Put contract with an exercise price of $0.81. What would be your net profit or loss on the expiration date, when the spot price for CHF is $0.80 -$1,670.00 -$418.75 $625.00 -$1,043.75

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

Illustrating Finance Policy With Mathematica

Authors: Nicholas L. Georgakopoulos

1st Edition

3319953710, 978-3319953717

More Books

Students also viewed these Finance questions

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago