Homework Help is Here – Start Your Trial Now!
Business
Finance
Bid 309.59 Ask 309.70 Size 0x0 Volo Last Calls Sale Net Bid Ask Vol Open Puts Int Last Sale Net Bid Ask Vol Open Int 05 Sep 290.0 (GGD IR-E) 20.10 pc 0 이 0 9147 05 Sep 290.0 (GGD UR-E) 0.25 pc 0 이이 017717

Bid 309.59 Ask 309.70 Size 0x0 Volo Last Calls Sale Net Bid Ask Vol Open Puts Int Last Sale Net Bid Ask Vol Open Int 05 Sep 290.0 (GGD IR-E) 20.10 pc 0 이 0 9147 05 Sep 290.0 (GGD UR-E) 0.25 pc 0 이이 017717

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question
I have answers but I want to make sure I did the question correctly
GOOG TABLE 2 Sep 13, 2005 @ 06:49 ET (Data 15 Minutes Delayed) Calls Last Sale Net Bid Ask Vol Open Int Puts 309.74 pc Bid 309.59 Ask 309.70 Size 0x0 Volo Last Sale Net Bid Ask Vol Open Int 05 Sep 290.0 (GGD IR-E) 20.10 pc 0 이 09147 05 Sep 290.0 (GGD UR-E) 0.25 pc 0 0 017717 05 Sep 300.0 (GGD IT-E) 10.70 pc 0 이 0 22848 05 Sep 300.0 (GGD UT-E) 0.85 pc 0 0 014542 05 Sep 310.0 (GGD IB-E) 3.70 pc 0 0 017881 05 Sep 310.0 (GGD UB-E) 4.00 pc 0 0 06101 05 Sep 320.0 (GGD ID-E) 0.85 pc 0 0018552 05 Sep 320.0 (GGD UD-E) 10.70 pc 0 0 0 2475 05 Oct 290.0 (GGD JR-E) 26.60 pc 0 0 0 2721 05 Oct 290.0 (GGD VR-E) 5.70 pc 0 0 0 2725 05 Oct 300.0 (GGD JT-E) 05 Oct 310.0 (GGD JB-E) 20.10 pc 0 14.90 pc 0 0 0 5218 05 Oct 300.0 (GGD VT-E) 9.30 pc 0 0 0 1842 0 0 4129 05 Oct 310.0 (GGD VB-E) 13.90 pc 0 0 940 PART B You purchased 10 Sept 300 calls (Strike price = $300) using the information in the Table from Part A. Now, You are trying to decide whether or not to close your position. The current stock price is $309.74. Scenario 1: Sell your 10 calls Scenario 2: Exercise your call options. (a) Determine your profit or loss, if you sold your options. $ -94.00 (b) Determine your profit or loss, if you exercised your options. $ 97.40 (c) Should you Sell or Exercise? Exercise
Transcribed Image Text:GOOG TABLE 2 Sep 13, 2005 @ 06:49 ET (Data 15 Minutes Delayed) Calls Last Sale Net Bid Ask Vol Open Int Puts 309.74 pc Bid 309.59 Ask 309.70 Size 0x0 Volo Last Sale Net Bid Ask Vol Open Int 05 Sep 290.0 (GGD IR-E) 20.10 pc 0 이 09147 05 Sep 290.0 (GGD UR-E) 0.25 pc 0 0 017717 05 Sep 300.0 (GGD IT-E) 10.70 pc 0 이 0 22848 05 Sep 300.0 (GGD UT-E) 0.85 pc 0 0 014542 05 Sep 310.0 (GGD IB-E) 3.70 pc 0 0 017881 05 Sep 310.0 (GGD UB-E) 4.00 pc 0 0 06101 05 Sep 320.0 (GGD ID-E) 0.85 pc 0 0018552 05 Sep 320.0 (GGD UD-E) 10.70 pc 0 0 0 2475 05 Oct 290.0 (GGD JR-E) 26.60 pc 0 0 0 2721 05 Oct 290.0 (GGD VR-E) 5.70 pc 0 0 0 2725 05 Oct 300.0 (GGD JT-E) 05 Oct 310.0 (GGD JB-E) 20.10 pc 0 14.90 pc 0 0 0 5218 05 Oct 300.0 (GGD VT-E) 9.30 pc 0 0 0 1842 0 0 4129 05 Oct 310.0 (GGD VB-E) 13.90 pc 0 0 940 PART B You purchased 10 Sept 300 calls (Strike price = $300) using the information in the Table from Part A. Now, You are trying to decide whether or not to close your position. The current stock price is $309.74. Scenario 1: Sell your 10 calls Scenario 2: Exercise your call options. (a) Determine your profit or loss, if you sold your options. $ -94.00 (b) Determine your profit or loss, if you exercised your options. $ 97.40 (c) Should you Sell or Exercise? Exercise
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS