Problem 15-6 Calculating Option Payoffs (LO2, CFA2) Calls Puts Close Hend reeks Strike Price Expiration Volume Last Volume Last 103 100 February 72 5.20 50 2.40 103 100 March 41 8.40 29 4.90 103 100 April 16 10.68 10 6.60 103 100 July 8 14.30 2 10.10 Suppose you buy 55 March 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $85.35 per share. How much is your options investment worth? What is your net gain? Note: Do not round intermediate calculations. Maximum gain Terminal value Net gain

Problem 15-6 Calculating Option Payoffs (LO2, CFA2) Calls Puts Close Hend reeks Strike Price Expiration Volume Last Volume Last 103 100 February 72 5.20 50 2.40 103 100 March 41 8.40 29 4.90 103 100 April 16 10.68 10 6.60 103 100 July 8 14.30 2 10.10 Suppose you buy 55 March 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $85.35 per share. How much is your options investment worth? What is your net gain? Note: Do not round intermediate calculations. Maximum gain Terminal value Net gain

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter18: Derivatives And Risk Management

Section: Chapter Questions

Problem 4P: Intermediate Problems 4-5 BLACK-SCHOLES MODEL Assume that you have been given the following...

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Form a long butterfly spread using the three call options in the table below: CI C2 C3 Strike- $90 Strike $100 Strike= $110 Expiry=180 days Expiry=180 days Expiry=180 days Price 16.3300 10.3000 6.0600 DELTA 0.500 0.721 0.81 GAMMA 0.0138 0.0181 0.0187 THETA -11.2054 -12.2607 -11.4208 VEGA 20.4619 22.8416 25.6602 RHO 25.7085 21.2515 17.5394 How would you make this portfolio delta neutral? Suppose that the size of one option is 1000 underlying assets. Oa. Short 132 underlying assets. Ob. Long 252 underlying assets. Short 231 underlying assets. Od. Long 132 underlying assets.
Problem 6-1 Financial Pages (LO1) Consider the table given below to answer the following question. Maturity Coupon Bid Price Asked Price Chg Asked Yield toMaturity (%) 15-02-2020 1.375 98.3281 98.3438 − 0.0078 2.228 15-02-2021 2.25 99.5781 99.5938 0.0313 2.391 15-02-2025 7.625 130.6719 130.6875 0.1094 2.770 15-02-2029 5.25 121.8516 121.9141 0.2344 2.908 15-02-2036 4.5 120.9063 120.9688 0.5313 2.986 15-02-2041 4.75 127.2422 127.3047 0.6641 3.084 15-02-2048 3 97.2656 97.2969 0.7266 3.140 a. What is the current yield of the 2.25% 2021 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Calls Puts Close Strike Price Expiration Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40 103 100 Mar 41 8.40 29 4.90 103 100 Apr 16 10.68 10 6.60 103 100 Jul 8 14.30 2 10.10 Suppose you buy 50 April 100 call option contracts. How much will you pay, ignoring commissions?
Intermediate Problems 4-5 BLACK-SCHOLES MODEL Assume that you have been given the following information on Fire Industries: Current stock price = 16 Exercise price of option = 16 Time until expiration of option = 6 months Risk-free rate = 8% Variance of stock price = 0.12 d1 =0.28577 d2 = 0.04082 N(d1) = 0.61247 N(d2) = 051628 Using the Black-Scholes Option Pricing Model, what is the value of the option?
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please answer all the 3 sub parts
Close Hend reeks 103 103 103 103 Maximum gain Terminal value Net gain Calls Strike Price Expiration Volume Last 5.20 February March 72 41 8.40 April 16 July 8 100 100 100 100 10.68 14.30 Puts Volume Last 50 29 10 2 2.40 4.90 6.60 10.10 Suppose you buy 30 March 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $84.60 per share. How much is your options investment worth? What is your net gain? Note: Do not round intermediate calculations.
Please answer fast please arjent help please ASAP pls answer fast
Basic Option Strategies Profit Computation Assume the below prices for calls and puts: Call Put Strike Jul Aug Oct Jul Aug Oct 165 2.7 5.25 8.1 2.4 4.75 6.75 170 0.8 3.25 6 5.75 7.5 1. Buy one August 170 call contract. Hold it until expiration. lIdentify the breakeven stock price at expiration. What is the profit/loss if ST=190? What is the maximum profit? 2. Buy one October 165 put contract. Hold it until the options expire. Identify the breakeven stock price at expiration. What is the Maximum possible loss from the transaction? What is the profit/loss if ST=185
FINANCE1A 10th Question
Problem 15-17 Option Strategies (LO3, CFA5) You write a put with a strike price of $30 on stock that you have shorted at $30 (this is a "covered put"). What are the expiration date profits to this position for stock prices of $20, $25, $30, $35, and $40 if the put premium is $1.90? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) $ $ A Stock price 20.00 25.00 30.00 35.00 40.00 Short profit Put payoff Put profit Check my work Net profit