A trader enters into a butterfly spread using the following calls. • Mar 4 $105 C - Price: $12.20 Mar 4 $110 C - Price: $9.30 • Mar 4 $115 C - Price $7.00 What is the profit (or loss) of the trade if the shares are trading for $111 at expiration? (Enter the total trade value, not the per share value)

A trader enters into a butterfly spread using the following calls. • Mar 4 $105 C - Price: $12.20 Mar 4 $110 C - Price: $9.30 • Mar 4 $115 C - Price $7.00 What is the profit (or loss) of the trade if the shares are trading for $111 at expiration? (Enter the total trade value, not the per share value)

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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Suppose that a hedge fund enters a market order to immediately sell 1600 shares. Compute the execution price for this trade. Top of the limit order book Price Shares 3400 103.12 2000 102.92 1600 102.71 500 102.50 Asks 100 102.30 Bids 200 102.10 700 101.89 1600 101.69 2100 101.48 3200 101.28 A. The exection price for immediately selling 1600 shares is $102.71 per share. B. The exection price for immediately selling 1600 shares is $101.83 per share. OC.The exection price for immediately selling 1600 shares is $102.10 per share. D. The exection price for immediately selling 1600 shares is $102.50 per share. O E. The exection price for immediately selling 1600 shares is $101.69 per share. O F. The exection price for immediately selling 1600 shares is $101.89 per share. G. The exection price for immediately selling 1600 shares is $102.30 per share.
am. 106.
#3 The market price of a share of preferred stock is $36.29. The market uses a discount rate of 6.32%. What is the dividend? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
Stock Price to Profit You buy an “at the money” April call option on M&M Corp. common stock, which has a strike price of $40 and a premium of $3.15. What must happen to the price of M&M Corp. stock for you to make a profit?
#2 The market price of a share of preferred stock is $22.26 and the dividend is $2.65. What discount rate did the market use to value the stock? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity %23
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
Whats the profit of the "Bearish Put Spread" when stock price is $25, $30, $35, $40, $45, $50, $55, $60, and $65 respectively? Given: - Stock price = $45.00 - Current option price = 7.0 (put 35) - Current option price = 2.0 (put 45) - Exercise Price = $40.00
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?
A stock is trading at $300 per share and a call option with strike $300 is priced $10 per share. If hedge ratio is 0.4, what's the call option elasticity? A. -20 B. -18 C. 15 D. 12
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
Ningbo Industrial Concepts Incorporated Initial stock price $115.00 Exercise price $115.00 Call price $4.75 Put Price $4.50 Required: Using the information in the table above, please calculate dollar value of the following option strategies. Use this calculated dollar value to determine the profit of each strategy at various stock prices. (Use cells A3 to B6 from the given information to complete this question. Negative answer should be input and displayed as a negative value. All other answers should be input and displayed as positive values.) Ningbo Industrial Concepts Incorporated Dollar Value of Strategy as a Function of Current Stock Price Strategy $95.00 $105.00 $115.00 $125.00 $135.00 Straddle Strip Strap Ningbo Industrial Concepts Incorporated Rate of Return…

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