Bullish price spread: Short the high exercise price call and long the low exercise price call IBM Call Expiration July Strike Last 90 13.44 July 95 9.8 July 100 7.35 1 contract for each Stock price/share 80 87.5 90 92.5 96.06 100 105 107.35 110 115 120 Call premium (Long low) Call premium (Short high) Payoff (low) Payoff (high) Profit

Bullish price spread: Short the high exercise price call and long the low exercise price call IBM Call Expiration July Strike Last 90 13.44 July 95 9.8 July 100 7.35 1 contract for each Stock price/share 80 87.5 90 92.5 96.06 100 105 107.35 110 115 120 Call premium (Long low) Call premium (Short high) Payoff (low) Payoff (high) Profit

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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Use the following corn futures quotes: Contract Month March May July September Open 455.125 467.000 477.000 475.000 Dollar profit Corn 5,000 bushels Low Settle 452.000 451.750 463.000 463.250 High 457.000 468.000 477.500 472.500 471.750 475.500 473.000 472.250 Change -2.750 -2.750 -2.000 -2.000 Open Interest 597,913 137,547 153,164 29,258 Suppose you buy 18 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 462.500, and you close out your position. Calculate your dollar profit on this investment. Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.
QUESTION 5 Suppose company XYZ's stock is trading at $53.86. You currently hold a put option with a strike price of $69.95 and premium on the option was $14.39. If today is the expiration date, how much did you gain or lose on the option? (Put the answer in as a negative if it's a loss.)
A short strangle was initiated with a strike price for the call at $70 and the strike price of the put at $80. The premium recieved for writing/selling the put was $12 and the premium received for writing/selling the call was $15. Within what range must the stock be at expiration to not lose money on this strangle?
M 10
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?
Underlying Microsoft (MSFT) Price: 295.71 Expiration Strike Call Put 1-Oct-2021 290 9.43 3.63 1-Oct-2021 300 3.60 7.82 1-Oct-2021 310 1.08 15.28 17-Dec-2021 290 17.25 11.72 17-Dec-2021 300 11.75 16.25 17-Dec-2021 310 7.62 22.05
ZZ Industries: Price 34.36 Calls: Strike Symbol Last Chg Bid Ask Vol 30.00 ZZBF 4.30 1.07 4.30 4.40 62 32.50 ZZBZ 1.87 1.07 1.82 1.87 236 35.00 ZZBG .01 1.05 .00 .01 3119 Puts: Strike Symbol Last Chg Bid Ask 30.00 ZZNF 32.50 ZZNZ .01 .00 .00 .01 1.02 .00 35.00 ZZNG .60 1.14 .63 Multiple Choice $3.00 Vol 0 $4.00 .01 .01 .68 2637 562 Open Int 3,429 8,168 38,017 You want the right, but not the obligation, to sell 300 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to establish this option position? Open Int 7,258 34,972 19,686 Help Save & Exit Su
Use the information below to answer the question 52WH 52WLo Ticker Div Yield % P/E Vol 00s High Low Close Net Chg 52.53 28.31 KO 0.65 1.34 13.80 6,412 54.12 32.50? -0.81 What was the previous day's closing price? O $51.32 O $48.74 O $50.10 O $49.32
Calls Puts Close Hendreeks Strike Price Expiration Vol. Last Vol. Last 103 100 Feb 72 5.20 50 2.40 103 100 Mar 41 8.40 29 4.90 103 100 Apr 16 103 100 Jul 8 10.68 14.30 10 6.60 2 10.10 Suppose you buy 40 July 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $86.40 per share. How much is your options investment worth? What is your net gain? (Do not round intermediate calculations.) Maximum gain Terminal value Net gain
Close Hend reeks 103 103 103 103 Maximum gain Terminal value Net gain Calls Strike Price Expiration Volume Last 5.20 February March 72 41 8.40 April 16 July 8 100 100 100 100 10.68 14.30 Puts Volume Last 50 29 10 2 2.40 4.90 6.60 10.10 Suppose you buy 30 March 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $84.60 per share. How much is your options investment worth? What is your net gain? Note: Do not round intermediate calculations.
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