Call Option Price_IO

Question 4?

A put option on Iowa stock specifies an exercise price of $71. Today the stock’s price is $68. The premium on the put option is $8. Assume the option will not be exercised until maturity, if at all. Complete the following table for a speculator who purchases the put option (and currently does not own the stock)

Question 1?

Question 16?

Question 5: Suppose that a March call option to buy a share for $50 costs $2.50 and is held until March. Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.Plz explain it

Question 11?

Question 9?

8. Buy one July 170 put contract. Hold it until the option expires. Determine the profits and display the results in a chart (include profits for the following underlying stock prices: 130,140,150,160,170,180,190). Identify the breakeven stock price at expiration. What is the maximum possible gain and loss on the transaction?

Question 3?

Stock Price to ProfitYou buy an “at the money” April call option on M&M Corp. common stock, which has a strikeprice of $25 and a premium of $4. At what minimum price of M&M Corp. stock will you make a profit?    At what minimum price should you exercise the option and buy the stock?

Unless otherwise stated, clearly show any work used in calculations in order to receive full credit. If you do not show your work, you will not receive credit. Question #1: Option Basics and Option Strategies [28 Points] Use the following Table to answer Parts (a) - (c) Current Price of Twitter, Inc. (TWTR) Stock $60.50 Strike Price of a call option that will expire in March 2022 $62.50 Premium of the call option ($ per share) that will expire on March 2022 $8.06 (a) Suppose that Tristan purchases four (4) call option contracts on TWTR with an expiration date of March 2022. Suppose that the stock price of TWTR increases to $73.49. What is the total profit (in dollars) that Tristan will realize as a result of this option trade? [5 Points]

A $32 put option on Watson Corporation stock expires today. The current price of the stock is $29.20. This option is:   Multiple Choice   out of the money.   unfunded.   at the money.   funded.   in the money.

The European call option gives the option buyer the right to exercise the option: Select one: a. at any time up to the expiration date. O b. only on the expiration date. c. if the price of the underlying asset falls below the exercise price. O d. immediately after the payment of dividends.

11) A call option that gives employees the right to buy shares of stock in the company at a fixed price on or before a fixed date is called a/an ____________. Multiple Choice Tier 1 option.   Employee stock option.   Secondary option.   Consol.   Coupon.

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You purchased a call option on TSLA with an exercise price of $180 for a premium of $5.0 and held it until the expiration date. What is your profit (per share) if the stock sells for $192 on the expiration date? Enter your answer without the dollar sign. Your Answer: Answer