Question
Show your work, please. Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $28.25, $7.25, $31.32, $25.89, and $79.08 respectively. Determine
Show your work, please.
Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are
$28.25, $7.25, $31.32, $25.89, and $79.08 respectively. Determine whether
the following options are in, at, or out of the money. Let 1 be "in",
0 be "at", and -1 be "out".
1. A put option you are holding on UUU stock has a strike price of $27.00.
The put premium on the option was $0.14 per share when you bought it.
2. A call option you are holding on WWW stock has a strike price of $7.50.
The call premium on the option was $0.19 per share when you bought it.
3. A call option you wrote on XXX stock has a strike price of $30.00.
The call premium on the option was $0.20 when you wrote the option.
4. A put option you wrote on YYY stock has a strike price of $26.00.
The put premium on the option was $0.15 when you wrote the option.
5. A put option you are holding on ZZZ stock has a strike price of $79.00.
The put premium on the option was $0.16 when you bought the option.
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