Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that you find that YBMs October 100 put has an ask price of $4.10 and a bid price of $4.00. If you want to

Suppose that you find that YBMs October 100 put has an ask price of $4.10 and a bid price of $4.00. If you want to buy these put options to protect your holding of 400 YBM shares from declining, what is your total cost including commission? Assume that the broker charges a commission equal to a flat fee of $15 plus $2 per contract.

a.

$1,623

b.

$1,647

c.

$1,655

d.

$1,663

e.

None of these answers are correct.

ANS: D

how?

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

More Books

Students also viewed these Finance questions