13 You purchased four call option contracts with a strike price of $25.20 and an option premium of $.84. You held the option until the expiration date. On the expiration date, the stock was selling for $22.50 a share. What is the total profit or loss on your option position? Skipped eBook Multiple Choice O O O O -$336 -$744 $1,416 $744 -$1,416 A

13 You purchased four call option contracts with a strike price of $25.20 and an option premium of $.84. You held the option until the expiration date. On the expiration date, the stock was selling for $22.50 a share. What is the total profit or loss on your option position? Skipped eBook Multiple Choice O O O O -$336 -$744 $1,416 $744 -$1,416 A

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A-9: Call option On March 1, 2022, Jensen Corp. purchased a call option on shares of YTV stock. The contract was for 100 shares at a strike price of $170 per share, with an expiration date of May 31, 2022. The option contract premium was $40. On March 31, a market appraisal estimated the time value of the option to be $30. Jensen settled the option contract on May 10. Prices of YTV stock during the option period are provided below. March 1 $170 March 31 $160 May 10 $165 At what amount would Jensen report as the value of the call option in its March 31, 2022 balance sheet? Price of YTV stock: Call Option account balance as of March 31, 2022: $ 500
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***** ayout References Mailings Review View Help A A Aa abc X₂ X² AA- 3 - 12 - Font E D F3 ii. 4 iii. x $ F4 a) Tembo holds a one-year put option on Shoprite common stock. The put option can be exercised at K50. Assume that the expiration date has arrived and the premium is K3. What is the value of the Shoprite put option on the expiration date if: i. Shoprite common stock is selling at K56 per share? ii. Shoprite common stock is selling at K45 per share? b) A trader buys a call option on a share for K2. The stock price is K25 and the strike price is K20, i. State the circumstances under which the trader will make a profit. I R GFS640-AASIGNMENT 2022-2 [Compatibility Mode] - Word AEE (5 F ES % 5 State the circumstances under which the option will be exercised. F5 T G Activate L Draw a diagram in support of your answers above, showing the variation Go to Setting A Paragraph LO 6 + 21 ¶ F6 a ABC Y Tell me what you want to do HUAWEI H O & 7 W AaBbCcDd AaBbCcDd AaBbC AaBbCc 1 Normal 1 No…
F1
Please explain what each term and values means in the image attached:
Consider April 2023 expiration call option on a share of AELZ stock with an exercise price of K95 per share selling on March 2, 2023 for K1.35. Exchange traded options expire on the third Friday of the expiration month, which for this option was April, 20. On March 2, AELZ sells for K90.90. Would you exercise the option? On April 20, AELZ sells for K96, what would be the value of the option at expiration? How much profit will the call holder make?
Company RJay RJay Sell-Mart Xenon Time to Expiration (months) Company RJay RJay Sell-Mart Xenon 1 $ 2 5 6 Time to Expiration (months) 1 2 5 6 Strike $ 60 70 60 7.50 Strike $ b. Now assume that the effective annual interest rate is 6.70%, which corresponds to a monthly interest rate of 0.54%. Calculate the present value of each call option's exercise price and the adjusted intrinsic value for each call option. (Do not round your intermediate calculations and round your final answers to 2 decimal places.) So 60 $ 70 60 7.50 62.92 62.84 69.80 6.78 So Intrinsic Value $ 62.92 62.84 69.80 6.78 2.92 0.00 9.80 0.00 PV(X) Adjusted Intrinsic Value
6- A put option (with shares as the underlying asset) was originally purchased for $1.44 and is now trading for $2.82. The exercise price is $34 and the underlying share is currently trading for $31.64. What is the intrinsic value of the option? a. $2.82 b. $0.00 c. $2.36 d. $1.44
Contract Name Last Trade Date Last Price Bid Ask Change % Change Volume Open Interest Implied Volatility AAPL200417C00105000 (Links to an external site.) 2019-11-19 3:53PM EST 105.00 (Links to an external site.) 160.65 160.75 165.40 0.00 - 20 100 78.61% 7. Is this contract a call or a put option? 8. How much do you need to pay to buy this option contract? Hint: when you buy the contract, you need to use Ask price.
8
Use information in attachement to provide correct option Option C Option B Option A Option D
QUESTION 30 Johnson & Johnson (ticker:JNJ) is traded at $172.21 per share when Nancy sold a call option today. The call premium is $3.05 and the exercise price is $180 The option will be expired on Jan. 20, 2024. a. What is Nancy's expectation about JNJ's price between now and expiration date? Also, state reasons why sellling a call is beneficial given her expectation of the price movement. b. What are Nancy's maximum profit and maximum loss? c. Show the profit/loss if, at the expiration date, the JNJ price is (1) $150, (2) $182, (3) $190. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph ABC ✔ ✓ Π "Ω Θ Arial 田く HH = 10pt 田田田 Ev A V 田旺图 † {} Ix ४ Gô Ky Q5 + ≡≡≡≡ € € X² X₂ & >IT

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