Question
The purpel pigeon Bird Seed Company stock was selling at $30 per share on the first day of this month. * If you had a
The purpel pigeon Bird Seed Company stock was selling at $30 per share on the first day of this month.
* If you had a put option on the first of the month with an excercise price of $27 and if the option also expries on the first, the value of the option would be _____. (57/0/3/66)
* If the put option expires in six months and the market expects the stock price to incrase, the value fo the option is likely to ____. (increase/ decrease)
*If you had a CALL option on the first of the month with an excercise price of $27 and if the option also expires on the first, the value of the OPTION would be $ _____. (57/0/66/3)
*If the call option expires in six months, the value of the option is likely to be ____ (higher/lower) than the difference in the stock price and excercise price of the call option at expiration.
(SCREEN SHOT BELOW)
The Purple Pigeon Bird seed Company stock was selling at $30 per share on the first day of this month If you had a put option on the first of the month If you had a call option on the first of the month with an exercise price of $27 and if the option with an exercise price of $27 and if the option also expires on the first, the value of the option also expires on the first, the value of the option would be $57 would be $57 If the call option expires in six months, the value If the put option expires in six months and the market expects the stock price to decrease, the of the option is likely to be higher than the value of the option is likely to increase difference in the stock price and exercise price of the call option at expirationStep by Step Solution
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