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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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)
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?
1
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.
A 3 month call cost 1.44 with a strike of 25.6 on a stock which costs $20. If the risk free rate is 2.5% what should be the cost of a 3 month put with a strike of 25.6? Please use 5 decimal places in your response. Thanks
Question A If you bought a put option contract (contract size is £31,250) with an exercise price of $1.50/£ and a premium of $0.15/£, at what future spot exchange rate will you maximize your profit? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line Fast
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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 $236, estimate the level of the VIX index. K p 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: s0 = $234.35r = 0.74%T = 1/12 years (required precision 0.01 +/- 0.01)
Suppose you want to short-sell 1 share of BRK.A which is traded at $600,000 (i.e., Berkshire Hathaway). The initial margin required is 50% and the maintenance margin is 30%. At what price level you would receive a margin call? 650,000 640,000 690,000 620,000

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