5. The price of a stock on February 1 is $48. A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2. The options are exercised when the stock price is $39. The trader’s net profit or loss is A. Loss of $800 B. Loss of $200 C. Gain of $200 D. Loss of $900

5. The price of a stock on February 1 is $48. A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2. The options are exercised when the stock price is $39. The trader’s net profit or loss is A. Loss of $800 B. Loss of $200 C. Gain of $200 D. Loss of $900

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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Calculate the Capital Gain/Loss on 100 shares of the stock Price on September 13th: 211.35 Price on November 24th:207.52 Use the Price on Sep 13th as the purchase price and the Price on November 24th as the sale price. Capital Gain: _______________________________ Percent Return: ___________________________
A company has earnings per share of $3.75 and P/E of 47. What is the stock price? Question 12 options: $174.08 $176.25 $185.95 $112.98
An investor has exchange-traded put options to sell 100 shares for $20. There is a $1 cash dividend declared. Which of the following is the position of the investor after the cash dividend? Put options to sell 100 shares for $21.00 Put options to sell 100 shares for $20.00 Put options to sell 105 shares for $19.00 Put options to sell 105 shares for $19.05
18) I need only answer
A trader working for a financial institution sells 200 PUT option contracts (i.e. 20,000 options) on a certain stock. At the time of the initial trade, the option price is $10, and the corresponding delta is -0.46. At time 0, the trader neutralizes the delta of the options through either the purchase/sale of shares. Over the course of the next week, the stock price moves, resulting in a new delta of -0.54. How many shares should the trader buy to maintain a delta-neutral position? If the answer requires selling/shorting shares, enter a negative number for the number of shares to purchase. (required precision 0.01 +/- 0.01)
Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: The maximum the seller of the put can lose is $ $102 $100 $6 $100 $3
1. If you had bought the January put with exercise price $105, will you exercise your put? 2. What is the profit (loss) on your position?
Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: $102 $100 $6 $100 $3 The maximum amount a short seller (of the stock) can profit is $
A put with a strike price of $50 was sold at $11 when the price of the stock was $48. What was the time value of the put at expiration?
2
19. You buy a January put option now with a strike price of 350. If the stock price in January is $330, how much is your net profit or loss? * 0/4 Captionless Image A) Loss of $5.35 B) Gain of $20 C) Loss of $20 D) Loss of $25.35 E) None of the ab
1. Three months ago an investment company bought for £8 a call option on a stock with an exercise price of £136. If the stock price at expiration of this option is £147. Select which of the following best describes the option value, the decision of the Investment Company and the return on investment thereon. A. Option value Decision Profit / (loss) % Exercise price – Stock price Exercise 37.5% B. Option value Decision Profit / (loss) % Stock price – Exercise price Don’t Exercise 2.2% C. Option value Decision Profit / (loss) % Exercise price – Stock price Exercise 2.2% D. Option value…

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