Prices as shown on 22 November 2020Amazon Inc: Current spot price: $ 130PUTSStrike Price Dec1292.671303.151324.21355.85CALLSStrike PriceDec129151304.251322.971351.88Which two prices will you select to create a Straddle using data from the above table.If price of Amazon Inc moves to 100 sometime in the near future how much profit will you make?

Straddle is an option strategy where a trader takes a same positing in call and put option for a…

Prices as shown on 22 November 2020 Amazon Inc: Current spot price: $130 PUTS Strike Price Dec 129 2.67 130 3.15 132 4.2 135 5.85 CALLS Strike Price Dec 129 130 4.25 132 2.97 135 1.88 Vhich two prices will you select to create a Straddle using data from the above table. price of Amazon Inc moves to 100 sometime in the near future how much profit will you make ?

Prices as shown on 22 November 2020 Amazon Inc: Current spot price: $130 PUTS Strike Price Dec 129 2.67 130 3.15 132 4.2 135 5.85 CALLS Strike Price Dec 129 130 4.25 132 2.97 135 1.88 Vhich two prices will you select to create a Straddle using data from the above table. price of Amazon Inc moves to 100 sometime in the near future how much profit will you make ?

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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Here is a table of call option quotes on Nike (NKE) from CBOT on 2 March 2020 On that day NKE traded at $89.59 The options expire June 19 2020. Bid Ask Strike $7.90 $8.05 $87.50 $6.55 $6.70 $90.00 $5.30 $5.50 $92.50 Suppose that you purchase the $87.50 strike price call and sell the $92.50 strike call. Ignoring commissions, what does your strategy cost today Recall that these quotes are per share but listed options are written on 100 shares. $300 $240 $275 $225
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The below table shows the list of prices for puts expiring in 30 days (T = 1/12). Using the put option with a strike price of $234, estimate the level of the VIX index. K 230 2.14 231 2.37 232 2.62 233 2.91 234 3.23 235 3.60 236 4.01 237 4.47 238 4.95 Other parameters you'll need: sO = $234.35 r = 0.74% T = 1/12 years (required precision 0.01 +/- 0.01)
Suppose the current price for coffee for delivery in December is $1.3890 per pound. Each contract is for 37,500 pounds. Initial margin is $5000 and maintenance margin is 2700 on what day will long side get a margin call if over the next 5 days the futures price evolves as follows Day Futures Price 1. $1.4110 2. $1.4290 3. $1.3800 4. $1.3165 5. $1.3175
a. Using the following information, calculate the price of a 12-month short call option using a two-step binomial tree procedure. So = £15, K = £16, r = 5% (annual), o = 30% (annual). You are given the following equations: Р a-d u-d (1) a = erst (2) f = [pfu+ (1-p)fale-rat (5) u = eo√At (3) d = ² (4)
Below is the price and other information for a European call option.Based on this information, find the premium with the Black-Scholes model. S = $ 98K = $ 100t = 3 monthsr = 5%S 2 = 25% (0.25)S = 0.5
Treasury Bill :$10,000 face value: Days to maturity: 153 Bid yield: 0.038 Ask yield: 0.034 What is the price that you will have to pay if you were to buy one T-bill from a dealer?
Calculate premium on put using the given details - Current price - $95 Exercise price - $97 Risk free rate - 8% Years to maturity - 1 Call premium - $20 Have rechecked and revised the figures. Correct spot price is $95 not $125 as asked earlier. Thank you and sorry for previous mistake :)
An Omani importer needs 250,000USD after 60 days. To protect from the risk of appreciation in USD he purchase the option and locked the price at USD2.5975 = 1 OMR with 2% premium option payment. Determine the amount of premium on this option. OMR 8,386.200 OMR 96,246.391 OMR 69,246.391 OMR 8,368.200
1
Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
Price a 3 month call using a one step binomial tree where the risk free rate is 1.00%. Where S0 is $50, the strike price is 52 and it can increase or decrease by 10% with equal probability.

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