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:)> Review Test Submission: HW2-Option Behaviors Review Test Submission: HW2-Option Behaviors User William L Lopez Flores Course 2023 Fall Term (1) Options Markets FIN 9797 UWA[16297] (Baruch College) Test HW?2-Option Behaviors Started 9/20/23 5:40 PM Submitted 9/20/23 5:46 PM Due Date 10/11/23 1:00 PM Status Completed Attempt Score 110 out of 110 points Time Elapsed 5 minutes Results Displayed All Answers, Submitted Answers, Correct Answers Question 1 10 out of 10 points Consider a long call option position with strike K=80 and expiry T. What is the payoff when the option is exercised at expiry T [a] if the security price at expiry (S_T) is 100? [b] what is the payoff if ST is 80? [c¢] what is the payoff if ST is 120? Specified Answer for:a & 20 Specified Answer for:b & 0 Specified Answer for: ¢ & 40 Question 2 10 out of 10 points "If you are a long put option with strike K=80 and with expiry T, the current stock price is $100. What is the option's intrinsic value? (assume 0 rates or dividends)" Selected Answer: & 0 Correct Answer: & 0 Answer range +/-0(0-0) Question 3 10 out of 10 points "If you want to replicate the forward contract with calls and puts at delivery price K=80 and expiry T, how will you do it? ""long"™ or ""short"" [a] a call and ""long™ or ""short™ [b] a put to create a long forward. ""long™ or ""short™ [c] a call and ""long™ or ""short™ [d] a put to create a short forward position. " Specified Answer for:a @& long Specified Answer for:b @& short Specified Answer for: ¢ @& short Specified Answer for:d & long
Question 4 10 out of 10 points "Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K=80 and same T) are quoted at $26 and $5, respectively. There is an arbitrage and you can lock in an arbitrage profit by ""buy™ or ""sell™ [a] a call, ""buy™ or ""sell"" [b] a put, and ""long™" or ""short™ [c] the forward all at K=80 and the same expiry T. How much will be the arbitrage profit in US dollar? (in integers ) [d] " Specified Answer for:a @ sell Specified Answer for: b @& buy Specified Answer for: ¢ & long Specified Answer for:d @ 1 P S Question 5 10 out of 10 points "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K=100) is quoted at $101? ""buy™ or ""sell™ [a] the call at K=100 for [b] and ""buy™ or ""sell"" [c] the forward at K=0 for [d]. This allows you to net [e] dollar today with no future liability." Specified Answer for:a @ sell Specified Answer for:b @ 101 Specified Answer for: ¢ & buy Specified Answer for:d & 100 Specified Answer for:e @& 1 Question 6 10 out of 10 points "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K=80) is quoted at $19? Answer: ""buy™ or ""sell"™" [a] the call at K=80 for [b] and ""buy™" or ""sell™" [c] the forward at K=80 for [d]. This allows you to net [e] dollar today and with non-negative future payoffs." Specified Answer for:a @ buy Specified Answer for:b @& 19 Specified Answer for: ¢ @& sell Specified Answer for: d @& 20 Specified Answer for:e & 1 Question 7 10 out of 10 points "Assume zero rates and no dividends, the forward price is $100. If an European put at K=110 is quoted at $111, what is the minimum amount you can make at expiry by selling the put at the quoted price? " Selected Answer: & 1 Correct Answer: & 1 Answer range +/-0(1-1)
Question 8 10 out of 10 points "Assume zero rates and no dividends, the forward price is $100. If a put at K=110 is quoted for $9, you can lock in an arbitrage profit by [a] (""long™ or ""'short™) the forward at K=110 to receive [b] dollars and [c] (""buy™ or ""sell"") the put at K=110 for [d] dollars " Specified Answer for:a @ long Specified Answer for:b @& 10 Specified Answer for: ¢ @& buy Specified Answer for:d @ 9 Question 9 An option is said to be in-the-money spot if the option has positive value when exercised right now Selected Answer: & True Answers: @ True False Question 10 American options can only be exercised at the expiry. Selected Answer: & False Answers: True @ False Question 11 10 out of 10 points 10 out of 10 points 10 out of 10 points "Suppose you constructed an option portfolio on the 1-year S&P index that include (i) short 1 put contract at K = 1500, (ii) long 1 put contract at K = 2000, (iii) short 1 call contract at K = 3000, and (iv) long 1 call contract at K = 3500. How much will be the payoff if the index level (i) drops to 1400 [a] , (ii) stays at 2700 [b], (iii) shoots to 3600 [c]. " Specified Answer for:a & 50000 Specified Answer for:b & 0 Specified Answer for: ¢ @ -50000
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Title Start Date Due Date Post Date Marks Available
Case study 2 - Case 2 27 Oct 2020 - 08:00 28 Oct 2020 - 06:00 28 Oct 2020 - 19:00 100
Summary:
On Chapters 9, 10, and 11:
The YuRaeKa charity was established in 1960. The charity’s aim is to provide support to children from disadvantaged backgrounds who wish to take part in sports such as tennis, badminton, squash, basketball and football.
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Sales Mix and Break-Even Sales
Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as
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Products Unit Selling Price Unit Variable Cost Sales Mix
Kayaks
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20%
Canoes
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units
2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year.
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Oshifting the graph of f(x) to the right 39 units
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You get a personal loan of $5,000 with 12% simple interest too be paid over 30 months. What is your monthly payment?
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Amortize Premium by Interest Method
Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate
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a. Journalize the entries to record the following:
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- O Odysseyware Ô https://sfdr.owschools.com/owsoo/studentAssignment/index?eh=65534403 San Felipe Der RIO CISD- IS JALYN GARCIA Odysseyware LEARN MESSAGE HELP SIGN OUT Assignment - 1. Credit Scores and Loans Attempt 1 of 1 ASSIGNMENTS COURSES SECTION 3 OF 4 QUESTION 6 OF 8 1 2 4 5 >> Match the option with the lowest monthly payment to highest monthly payment. $12,000 loan with 1% simple 1. lowest payment interest over 7 years $7,500 loan with 4% simple interest 2. second highest payment over 5 years $8,500 loan with 2% simple 3. third highest payment interest over 6 years $10,000 loan with 3% simple 4. fourth highest payment interest over 4 years 9:19 PM 后 ENG 2/4/2021 P Type here to search Rarrow_forwardAuditing || fall20 Dashboard My courses ACCT4141_iram_fall20 WEEK 7: 25 OCTOBER - 31 OCTOBER Case study 2 Separate groups: 5 My Submissions Case 2 Title Start Date Due Date Post Date Marks Available Case study 2 - Case 2 27 Oct 2020 - 08:00 28 Oct 2020 - 06:00 28 Oct 2020 - 19:00 100 Summary: On Chapters 9, 10, and 11: The YuRaeKa charity was established in 1960. The charity’s aim is to provide support to children from disadvantaged backgrounds who wish to take part in sports such as tennis, badminton, squash, basketball and football. YuRaeKa has a detailed constitution[1] which explains how the charity’s income can be spent. The constitution also notes that administration expenditure cannot exceed 10% of income in any year. The charity’s income is derived wholly from voluntary donations. Sources of donations include: (i) Cash collected by volunteers asking the public for donations in shopping areas, (ii) Cheques sent to the charity’s head office, (iii) Donations…arrow_forwardCourse: 2020FA Accounting for X * CengageNOWv2 | Online teachir x /v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAs... еВook GE Calculator Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Kayaks $240 $160 20% Canoes 510 240 80% The estimated fixed costs for the current year are $273,760. Instructions: 1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year. Kayaks units Canoes units 3. Assume that the sales mix was 80% Kayaks and 20% canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units 田arrow_forward
- us.wvu.edu/webapps/assessment/take/launch.jsp?course_assessment_id=_349525_1&course_id=_172235_1&content_id= 91004 Musketeers worldhiston H Blackboard M WVU Gmail a Discord Complete History... m HBO Max N Netflix A ALEKS- Musketeers Excel Email am and sieges v Question Completion Status: Florist Grump, Inc., had beginning retained earnings of $137,000. During the year, Florist Grump had net income of $63,000 and declared and paid dividends of $18,000. What will be shown for ending retained earnings on Florist Grump's year-end balance sheet? QUESTION 9 For the year ended December 31, Year 2 For the year ended December 31, Year 1 Revenues $ 7,500 $ 500 Expenses 1,500 Net Income December 31, Year 2 December 31, Year 1 Assets $ 16,500 $ 1,000 500 Liabilities Stock 300 300 Retained Earnings 1.$ 200 Assume Year1 is the company's first year of business and there were $100 dividends in Year 1 and $100 dividends in Year 2. After determining the missing amounts ($ Earnings 1.$ in the above…arrow_forwardI need to know how to find the FIFO, LIFO, and Average Cost. Also, don't understand what the last question is asking.arrow_forwardHey I was wondering if I can get help with this thank youarrow_forward
- engageNOWv2 | Online teachin + /takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Cancel Your. Startup Opportuniti. V How brands are co.. Assignment Practic. A COVID-19 Student. w C20-128PRO1-2016. O Final Exam Review -. G Professional Certific. Redbird Company is considering a project with an initial investment of $300,000 in new equipment that will yield annual net cash flows of $57,626 each year over its seven-year life. The company's minimum required rate of return is 12%. (Click here to see present value and future value tables) A. What is the internal rate of return? B. Should Redbird accept the project based on IRR? Previous Nextarrow_forwardEdit View History Bookmarks People Tab Window Help N Academic Tools :: Northern Virgi X 63% Mon 12:07 PM weCS Virginia Community College Syst X N CHAPTER 08 HW NOVA learn.vccs.edu/courses/240149/assignments/4704240?module_item_id=17254910 https://checkout.wileyplus.com/ X des View Policies rse Evaluations Current Attempt in Progress A Policies Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. r.com: 24/7 On- Tutoring Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note. ary Resources Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note. 16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…arrow_forwardFinancial Management - Fall 20 I To Do / Completed B Take Test: Bonus: Stocks - Fall 20 T BFIN 300 Fall 2021 - Assigned| M Inbox (11,168) - rdeans9876@g htps://blackboard.albany.edu/webapps/assessment/take/take.jsp?course_assessment id=_152519 1&course_id=_157898_1&content_id=_60538 OSBOX SVN. CPU. G Google * WebAssign - Blackboard Learn How To Factory Res. 9 Honey P MyLab IT | Pearson M Inbox (10,367) - rde. Ishiguro Transcontinental paid a dividend of $5.40 last year and the company anticipates this will grow at 2.10% for the foreseeable future. The appropriate discount rate (expect return) for the stock is 7.6%, Ishiguro's stock price is closest to: O A. $72.54. O B. $98.18. O C. $100.24.arrow_forward
- whats the answer for number 2arrow_forwardIOWv2 | Online teachin X + ssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Your... Startup Opportuniti. V How brands are co... A Assignment Practic... A COVID-19 Student. C20-128PR01-2016... O Final Exam Review -.. During the current year, Sokowski Manufacturing earned income of $332,760 from total sales of $5,640,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. If required, round your answer to two decimal places. times B. Assume sales margin is 5.9%, what is the total ROI for the company during the current year?. If required, round your answer to one decimal place. %arrow_forwardFile Tools View UTS MK I GSL 20-21 (19.10.20 -13.30) - Word (Product Activation Failed) W UTS MK I GSL 20-21 (19.10.20 -13.30) * x Document2 Problem 1 Balance Shet Income Statement PT. MaTaHtari PT. MATAH+ari For the year Ended December 31 For the year Ended December 31 2019 2018 ASSET Sales Revenue 10.000.000.000 Cash 550.000.000 700.000.000 Cost of Good Sold 6.400.000.000 Marketable Securities 500.000.000 300.000.000 Gross Profit Account Receivable 700.000.000 550.000.000 Inventory 750.000.000 650.000.00D 3.600000.000 Total Currevt Assit 2.500.000.000 2.200.000.000 Operating Expenses Selling Expenses 200.000.000 Gross Fixed Asset 3.000.000.000 General & Administrative Expenses 150.000.000 4.000.000.000 Less : Accumulated Depreciation Depreciation Expenses 250.000.000 500.000.000 200.000.000 Nett Fred Assit Total Operating Expenses 3.500.000.000 2.800.000.000 600.000.000 Operating Profit TOTAL ASSET 6.000.000.000 5.000.000.000 3.000.000.000 Interest Expenses JABILITIBS E STOCKHOLDER'S…arrow_forward
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