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PLEASE SHOW WORK U Question 6 6 pts Today, a trader opens an new position by writing 13 July Apple call option contracts with a
PLEASE SHOW WORK
U Question 6 6 pts Today, a trader opens an new position by writing 13 July Apple call option contracts with a strike price of $650 and receives a premium of $2.00. Apple common stock is trading at $537.55 per share. One week later, the trader completely offsets this position at an option price of $2.00. All prices are per share. The underlying asset is 100 shares. What is the trader's total profit or loss, not taking into account trading expenses? Special instructions: . Do not round values at intermediate steps in your calculations Enter your answer in dollars and cents, but omit the $ symbol and commas. Round to the nearest penny. Example: enter $1.234.56 as 1234.56 in the answer box If a loss, put a minus sign in front of the number. . Currently, the best bid on July puts, strike price $665, on Apple common stocks is $130.76 while the best ask is $134.18. Quotes are per share. The underlying asset is 100 shares per contract. What does the bid-ask spread cost you in total when you open a long position in 10 of these put options? Note: your answer is a cost, but do not enter a minus sign as part of your answer. Special instructions: . Do not round values at intermediate steps in your calculations. Enter your answer in dollars and cents, but omit the $ symbol and commas. Round to the nearest penny. Example: enter $1.234.56 as 1234,56 in the answer box Today, a trader opens a new option position by buying 6 January Microsoft put option contracts with a strike price of $300 and receives a premium of $35.66. Microsoft common stock is trading at $272.77 per share. One week later, the trader completely offsets this position at an option price of $40. All prices are per share. The underlying asset is 100 shares. What is the trader's total profit or loss, not taking into account trading expenses? Special instructions: Do not round values at intermediate steps in your calculations. . Enter your answer in dollars and cents, but omit the $ symbol and commas. Round to the nearest penny. Example: enter $1,234,56 as 1234,56 in the answer box If a loss, put a minus sign in front of the number. 6 pts Today, a trader opens an new position by writing 10 November Halliburton put option contracts with a strike price of $650 and receives a premium of $3.87. Halliburton common stock is trading at $677.27 per share. One week later, the trader completely offsets this position at an option price of $5.00. All prices are per share. The underlying asset is 100 shares. What is the trader's total profit or loss, not taking into account trading expenses? Special instructions: . Do not round values at intermediate steps in your calculations. Enter your answer in dollars and cents, but omit the $ symbol and commas. Round to the nearest penny. Example: enter $1.234.56 as 1234.56 in the answer box. If a loss, put a minus sign in front of the number Step by Step Solution
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