onsider the following Put Option: May 50 trading at $3.15/share May is the expiration  50 is the Strike Price $3.15 is the Premium If, at expiration, the stock price is $57.25, the Seller (to Open) would have a TOTAL gain or loss of.....(not per share) if a loss use the '-' sign

Q: Initial stock price $75.00                         Expiration Date Strike Price Call Price Put Price…

A: Stock Price is $75 Exercise Price is $65 and $85 Call Premium with strike price $85 is $3.54 Put…

Q: You bought five call option contracts with a strike price of $47.50 and an option premium of $1.20.…

A: Let us make the calculations. Price = Option premium + Share price Price = $1.20+$47.50 Price =…

Q: The price of Cilantro, Incorporated, stock will be either $73 or $95 at the end of the year. Call…

A: Here,Risk Free Rate is 4%Time Period is 1 yearStock Price is $84Price after one year can be $73 or…

Q: You buy an “at the money” April call option on M&M Corp. common stock, which has a strike price of…

A: ATM calls and puts have a striking price that is equal to or extremely near to the current market…

Q: of a $35 strike call? Assume S = $38.50, = 0.25, r = 0.06, the stock pays no dividend andthe option…

A: When a derivatives contract is exercised, the strike value is the cost at which it could be…

Q: Whats the profit of the "Straddle" when stock price is $15, $20, $25, $30, $35, $40, $45, $50, $55,…

A: In the given question we require to calculate the profit of the "Straddle" when stock price is $15,…

Q: 16. The stock is currently trading at $32 per share. Consider a put option on this stock with a…

A: The market price of share = $32 The strike price of a share = $30

Q: WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price…

A: Current Price = $120No of Put Options = 8Strike Price = $110Premium = $8

Q: Determine the ff. 1. Call Option - Total Value 2. Call Option - Intrinsic Value 3. Call Option -…

A: The call option gives the buyer of the option the choice to purchase the underlying asset at the…

Q: Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded…

A: Black Scholes model This model is used to value options that have volatility. With stock price (S),…

Q: Correct option is

A: so option a) is correct      THANK YOU

Q: Based on the table, compute the 1. value of the call option 2. value of the put option. Contract…

A: Given: Particulars   Current stock price 78.25 Standard deviation 36% Risk free rate 6.00%…

Q: Q4 Using the Put-Call Parity relationship, find the value of a put option (same strike, expiration…

A: By using the call put parity relationship, the value of a put option has to be determined. This is a…

Q: Consider the following Call Option: June 80 trading at $4.25/share June is the expiration  80 is…

A: Call option would give holders of option to buy stock on expiration but no obligation to do that…

Q: Given the following information, price of a stock: strike price of a six-month call: market price of…

A: A covered call refers to the strategy used by investors where they buy a stock while at the same…

Q: This option has a time value of_

A: The time value of an option contract means the difference between the option premium and the…

Q: nsider a binomial pricing model with the following assumptions: - the underlying stock is currently…

A: Call give option to buy at expiration but no obligation to buy on the expiration.

Q: In follow an Ito process with >0, a stock is worth $80 today, if the price of an option that pays…

A: To price the option, we need to use the Black-Scholes formula, which is a mathematical formula used…

Q: A 45 call option on a stock priced at $50 is priced at $8.50. This call has an intrinsic value of…

A: Option premium = $8.50 Strike price = $45 Stock price = $50 Intrinsic value = ? Time value = ?

Q: Consider the following Put Option: May 50 trading at $3.15/share May is the expiration  50 is the…

A: In case of Put option, Buyer will exercise the put option only if strike price is greater than stock…

Q: Current stock price for XYZ $50.00 3% 0% Interestrate Dividend rate Option PUT PUT PUT PUT CALL CALL…

A: Here,

Q: Stock Price to Profit  You buy an “at the money” April call option on M&M Corp. common stock, which…

A: Stock price is $40 Strike price is $40 Call option premium is $3.15   To find: Prices at which…

Q: Calculate the upper and lower bounds for the price of a 4-month European call option on a…

A: Given: Stock price = $28 Strike price = $25 Risk free rate = 8% number of months =4

Q: What is the price of a $25 strike call? Assume S = $23.50, \sigma 0.24, г 0.055, the stock pays a…

A: Using the Black - Scholes formula for the below:S = $23.50K = $25σ = 0.24r = 0.055Continuous…

Q: A trader buys a put option with strike $85 and buys a call option with a strike of $95, both with…

A: To calculate the breakeven share prices, we need to add and subtract the premiums paid for the call…

Q: Basic Opfion Strafegies Profif Computation Assume the below prices for calls and puts: Call Put…

A: Call option A call option gives its holder the right to purchase the stock at the strike price. With…

Q: You bought a $50 strike call option on a stock XYZ for $8.20 and then sold/wrote a $65 call option…

A: Call Option is exercised only if stock price on maturity is more than the strike price of the call.…