Answered: Cost per option: $219 Exercise Price:…

Business

Finance

Cost per option: $219 Exercise Price: $104 Stock Price: $387 Quantity: 10. 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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D6 AMXL price is at 16.20, AMXL is expected to pay a dividend of 16 cents in 30 days and pay a dividend of 16 cents in 60 days. The 30-day risk-free rate is 8% and the 60-day risk-free rate is 8.60%. Do the following operations.a) Calculate the price of the 45-day forward
Options for A: 1.10% , 1.89% , 2.43% , 3.12% , 3.90% Options for B: 7.78% , 6.22% , 3% , 4% , 5.38% Options for C: 3.18% , 2.43% , 5.01% , 5.89% , 4.24%
9. Consider the following information: C $4.75 $3 $50 $50 X S, = C-P+ (1+r)' So 6.00% t 6 months Fill in the following chart. Stock Price at Option Expiration $0 $50 $100 Cash in or out from Call Cash in or out from Put Cash in or out from Loan Cash in or out from Stock Total
D0 = $2, g = 5%, P0 = $30, find the stock return 10% 11% 12% 13%
State options strategy with the correct expiry profit diagram.
Basic Option Strategies Profit Computation Assume the below prices for calls and puts: Call Put Strike Jul Aug Oct Jul Aug Oct 165 2.7 5.25 8.1 2.4 4.75 6.75 170 0.8 3.25 6 5.75 7.5 1. Buy one August 170 call contract. Hold it until expiration. lIdentify the breakeven stock price at expiration. What is the profit/loss if ST=190? What is the maximum profit? 2. Buy one October 165 put contract. Hold it until the options expire. Identify the breakeven stock price at expiration. What is the Maximum possible loss from the transaction? What is the profit/loss if ST=185
F1
Calculate the end-of-year return for the following investment purchased for $14 at the beginning of 202X. Distributions and Prices Changes 202X Per-share income distributions: $0.20 Per-share capital gains distributions: $0.40 Year-end NAV: $15.25 Year-end market price: $15.00 If required, round your answer to two decimal places. a. 10.67% b. 11.43% c. 10.49% d. 13.21%
ABC Company's current stock price is $100. The risk-free rate is 4%. 38. The payoff to the holder of a call option on ABC with an exercise price of $200 is closest to: A. $100 if stock price at option expiration equals $200 B. Zero if stock price at option expiration equals $100 C. -S40 if stock price at option expiration equals $160
Your investment over one year had a realized return of 9% and a dividend yield of 6%. If the sale price was $45 per share, what was the cost of the investment? Question 7 options: $45.00 $46.35 $43.69 $41.28 $44.21
QUESTION 16 If D1=$5.00, rs-10%, and g = -3%, would anyone buy the stock? If so, at what price?
D. 7.69 percent E 8.26 percent 16. An increase in which of the following would increase the price of a call option on common stock, all else equal? L Stock price I1. Stock price volatility IIL. Interest rates IV. Exercise price A II only B. II and IV only C. I, II, and III only D. 1, 1IL and IV only E. I, II, III, and IV

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