D Question 12 8 pts Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62,500 CHFs. Exercise prices, call and put premiums are in cents. Calls Vol. Last Puts Vol. Last 62,500 Swiss Francs-European Style. 77 Oct 77 Dec 31 10 2.78 3.60 --- 78 Nov 47 0.23 78 Dec 14 2.66 100 0.43 79 Oct 50 0.27 --- 79 Nov 79 Dec 80 Nov Dec 81 Oct 81 Nov 81 Dec Nov Nov tunu 1.59 2.04 1.00 1.39 Dec 0.20 is 3.12 --- You buy one November PUT options contract with an exercise price of $0.83. If at the time of the option expiration date price for Swiss francs is $0.835, then this call option is and you incur a net O in-the-money; loss of $2,262.50 O out-of-the-money; loss of $1,950 O out-of-the-money; loss of $312.50
D Question 12 8 pts Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62,500 CHFs. Exercise prices, call and put premiums are in cents. Calls Vol. Last Puts Vol. Last 62,500 Swiss Francs-European Style. 77 Oct 77 Dec 31 10 2.78 3.60 --- 78 Nov 47 0.23 78 Dec 14 2.66 100 0.43 79 Oct 50 0.27 --- 79 Nov 79 Dec 80 Nov Dec 81 Oct 81 Nov 81 Dec Nov Nov tunu 1.59 2.04 1.00 1.39 Dec 0.20 is 3.12 --- You buy one November PUT options contract with an exercise price of $0.83. If at the time of the option expiration date price for Swiss francs is $0.835, then this call option is and you incur a net O in-the-money; loss of $2,262.50 O out-of-the-money; loss of $1,950 O out-of-the-money; loss of $312.50
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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Transcribed Image Text:D Question 12
8 pts
Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each
contract has 62,500 CHFs. Exercise prices, call and put premiums are in cents.
Calls
Vol. Last
Puts
Vol. Last
62,500 Swiss Francs-European Style.
77 Oct
77
Dec
31
10 2.78
3.60
---
78
Nov
47
0.23
78
Dec
14 2.66
100
0.43
79
Oct
50
0.27
---
79
Nov
79
Dec
80
Nov
Dec
81
Oct
81
Nov
81
Dec
Nov
Nov
tunu
1.59
2.04
1.00
1.39
Dec
0.20
is
3.12
---
You buy one November PUT options contract with an exercise price of $0.83. If at the time of the option expiration date
price for Swiss francs is $0.835, then this call option is
and you incur a net
O in-the-money; loss of $2,262.50
O out-of-the-money; loss of $1,950
O out-of-the-money; loss of $312.50
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