Stock Current Exercise Time to maturity

PricepriceCall premiumPut premium

3 Months6 Months3 Months6 Months

ABC Co.,$52$50$3$4$0.35$1.05

XYZ Co.,404511.255.506.00

CDC Co.,353066.300.450.65

Use option information given above to answer the following question. Ignore taxes and transaction costs. Each contract is equal to 100 shares.

Required:

1.Which of the above company's option are in the money .

2.Mr. Ahmed created a straddle by purchasing a 3-month put and call option for ABC Co., .Determine the Ahmed profit or loss in 3 month if the price of ABC'S Stock is $53.

3.If Ali had written five 6-month put options on XYZ Co., , what would his profit or loss have been at the maturity of the options it the stock price was $43 per share?

4.Mr. Ali recently wrote a five 6-month call options on XYZ Co., stock .What is Mr. Ali profit or loss on the option at maturity if the prices of XYZ Stock at that time is $43.

5.If you had purchased five 3-month puts on CDC Co, what would your profit or loss position have been at maturity is the stock's price was $32.

6.You recently purchased five 3-month call option of the CDC Co., .Determine you profit or loss on the investment if the price of CDC's stock is $32 at maturity.

7.If XYZ Co, 's price is $35 at the maturity of the 6-month option, determine the value of five 6-month put contract at their maturity date.

8.If you purchase one 3-month call contract on ABC Co., What profit or loss will you make at the maturity date if the price of ABC CO., at that time is $57.

Show working against all.

assume R to be 10%