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Please kindly reply them & send them to my email today. Thanks&Regards, 1. Calculate the profit per share for an investor that exercises a put
Please kindly reply them & send them to my email today. Thanks&Regards,
1. Calculate the profit per share for an investor that exercises a put option with a strike price of $60 when the stock is selling for $46 and the premium for the put option was $4. A. -$14 B. -$10 C. $10 D. $18 2. What is the profit per share for an investor who has purchased a share of stock and two put options with an exercise price of $40, given that the purchase price of the stock was $42, each put cost $2 per share, and the stock was valued at $30 at expiration? A. -$16 B. - $6 C. - $4 D. $4 3. How much must the stock be worth at expiration in order for a call holder to break even if the exercise price is $50 and the call premium was $4? A. $46 B. $50 C. $52 D. $54 4. What is the worst-case profitability scenario for an investor who sold a call on the firm's stock for a premium of $10 and a strike price of $100? A. $90 per share profit B. $10 per share profit C. $0 per share profit (break-even) D. Unlimited losses 5. It is May 19 and you own a June, European call on ABC Corp. with an exercise price of $50. The option trades at $40 and ABC is trading at $86. What should you do? A. Exercise the option now and take the profits. B. Buy more options on ABC Corp. C. Sell your ABC stock before its price declines. D. Sit and wait until the June expiration. 6. Option buyers can have a(n) _____ of exercising their options. Options sellers can have a(n) _____ of exercising their options. A. obligation; obligation B. obligation; right C. right; right D. right; obligation 7. Joe sold a put option on ZZZ Corp. with an exercise price of $40. The option expires tomorrow and ZZZ is currently trading at $28 per share. The option premium was $4 per share. What is Joe's profit or loss per share if the option is exercised? A. - $16 B. - $8 C. $8 D. $16 8. Calculate the return on exercising a put option that was purchased for $10, with an exercise price of $85. The stock price at expiration is $81. A. - 60% B. 60% C. 30% D. - 30% 9. Of the following four put options that can be purchased on a stock, which would you expect to have the highest price? A. September put; $65 exercise price B. September put; $75 exercise price C. December put; $65 exercise price D. December put; $75 exercise price 10. Three months ago you bought for $4 a put option on a stock with an exercise price of $100. If the stock price at expiration of this option is $92, what is your return on investment? A. 200% B. 150% C. 100% D. 50% 11. A stock is selling at $85 at the expiration of an option contract. Which of the following options will most likely be exercised? A. Buyer of a call option with exercise price of $65 B. Buyer of a put option with exercise price of $65 C. Buyer of a call option with exercise price of $85 D. Buyer of a put option with exercise price of $85
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