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Question 50 2 pts Use the following option quotes for the remaining questions on the test: Stock Price Strike Price Maturity Call Price Put Price
Question 50 2 pts Use the following option quotes for the remaining questions on the test: Stock Price Strike Price Maturity Call Price Put Price 165.125 160 Jul 6.000 0.750 165.125 160 Aug 8.125 2.750 165.125 160 Oct 11.125 4.500 165.125 165 Jul 2.688 2.375 165.125 165 Aug 5.250 4.750 165.125 165 Oct 8.125 6.750 165.125 170 Jul 0.812 5.750 165.125 170 Aug 3.250 7.500 165.125 170 Oct 6.000 ??? The quotation date is July 6. The stock pays no dividends, and all the options are European. The option expirations are July 17August 21, and October 16, with corresponding (annual) continuously-compounded risk-free rates of .0503,.0535, and .0571, respectively. The associated number of days to expiration are 11, 46 and 102. For the bull spread trade in problem #49, what is the stock price at expiration that leads to a breakeven net profit/loss for the trade? $172.000 $164.750 $177.500 $161.500 $165.250
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