Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You buy a call option on Whitby Incorporated stock with a strike price of $65. The option premium is $1.23. The option has 4 months
You buy a call option on Whitby Incorporated stock with a strike price of $65. The option premium is $1.23. The option has 4 months until expiration and you purchase 5 contracts. On the expiration date, the stock was valued at $71.78 a share. What is your profit or loss on the option contracts in dollars? Answer should be formatted as a number with 2 decimal places (e.g. 99.99). You purchase 8 put option contracts on HSB Industries. The strike price was $45 and the option premium was $1.64. On the expiration date, the stock was valued at $48.66 a share. What is your payoff on the option contracts? Answer should be formatted as a number with 2 decimal places (e.g. 99.99). You purchased 500 shares of HSB stock at a price of $51.93 per share. You then purchased put options on your shares with a strike price of $55.50 and an option premium of $1.24. At expiration the stock was selling for $57.78 a share. You sold your shares on the option expiration date. What is your net profit or loss on your transactions related to HSB stock? Answer should be formatted as a number with 2 decimal places (e.g. 99.99)
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