icker GT 3/18/22 C200 GT 3/18/22 C210 GT 3/18/22 C220 GT 3/18/22 C230 GT 3/18/22 C240 icker GT 3/18/22 P200 GT 3/18/22 P210 GT 3/18/22 P220 GT 3/18/22 P230 GT 3/18/22 P240 ce: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Bid 5.00 8.30 12.85 19.15 26.05 Ask 21.60 13.80 8.65 5.15 2.95 turn on investment at $203 turn on investment at $217 Ask 5.15 8.50 13.45 19.80 27.80 Calls Last 29.00y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 sume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $210 per share. Suppose get stock sells for $203 per share immediately before your options' expiration. What is the rate of return on your investment? What our rate of return if the stock sells for $217 per share (think about it)? Assume your holding period for this investment is exactly ee months. 2,785.29 % 2,991 % Volume 18 38 6 9 5 te: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as ercent rounded to 2 decimal places.
icker GT 3/18/22 C200 GT 3/18/22 C210 GT 3/18/22 C220 GT 3/18/22 C230 GT 3/18/22 C240 icker GT 3/18/22 P200 GT 3/18/22 P210 GT 3/18/22 P220 GT 3/18/22 P230 GT 3/18/22 P240 ce: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Bid 5.00 8.30 12.85 19.15 26.05 Ask 21.60 13.80 8.65 5.15 2.95 turn on investment at $203 turn on investment at $217 Ask 5.15 8.50 13.45 19.80 27.80 Calls Last 29.00y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 sume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $210 per share. Suppose get stock sells for $203 per share immediately before your options' expiration. What is the rate of return on your investment? What our rate of return if the stock sells for $217 per share (think about it)? Assume your holding period for this investment is exactly ee months. 2,785.29 % 2,991 % Volume 18 38 6 9 5 te: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as ercent rounded to 2 decimal places.
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
Related questions
Question

Transcribed Image Text:Use the following quotes for Target stock options:
Ticker
TGT 3/18/22 C200
TGT 3/18/22 C210
TGT 3/18/22 C220
TGT 3/18/22 C230
TGT 3/18/22 C240
Ticker
TGT 3/18/22 P200
TGT 3/18/22 P210
TGT 3/18/22 P220
TGT 3/18/22 P230
TGT 3/18/22 P240
Source: Bloomberg Finance L.P.
Bid
20.15
13.45
8.35
4.85
2.70
Bid
5.00
8.30
12.85
19.15
26.05
Ask
21.60
13.80
8.65
5.15
2.95
Ask
5.15
8.50
13.45
19.80
27.80
Return on investment at $203
Return on investment at $217
Calls
Last
IVM
29.00y 35.07
14.25
32.58
9.65
31.34
5.10
31.07
2.85
31.08
Puts
Last
4.95
8.35
12.55
18.49
25.83
IVM
34.16
32.35
31.34
30.06
28.44
Volume
16
20
35
16
Assume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $210 per share. Suppose
Target stock sells for $203 per share immediately before your options' expiration. What is the rate of return on your investment? What
is your rate of return if the stock sells for $217 per share (think about it)? Assume your holding period for this investment is exactly
three months.
2,785.29 %
2,991 %
Volume
18
38
6
9
5
Note: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as
a percent rounded to 2 decimal places.
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