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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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.)
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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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
Problem 15-11 Put-Call Parity (LO4, CFA1) A call option is currently selling for $4.40. It has a strike price of $55 and six months to maturity. The current stock price is $57 and the risk-free rate is 3.4 percent. The stock will pay a dividend of $2.05 in two months. What is the price of a put option with the same exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of a put option
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Use the information below to answer the question 52WH 52WLo Ticker Div Yield % P/E Vol 00s High Low Close Net Chg 52.53 28.31 KO 0.65 1.34 13.80 6,412 54.12 32.50? -0.81 What was the previous day's closing price? O $51.32 O $48.74 O $50.10 O $49.32
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QUESTION 12 Call and Put Options for Apple (AAPL) Underlying stock price: 666.80 Call Put Expiration Strike Last Volume Open Interest Last Volume Open Interest (1) (2) (3) (4) (5) (6) (7) (8) Oct 680.00 0.31 30097 15779 13.50 7869 3104 Nov 680.00 23.10 585 5436 37.40 202 4859 Jan 680.00 38.90 496 8894 51.60 60 3344 Apr 680.00 56.57 49 1265 71.30 11 393 Calculate the time value of the October Call
Use the information below to answer the question 52WHI 52WLo Ticker Div Yield % P/E Vol 00s High Low Close Net Chg 52.53 28.31 KO 0.65 1.34 13.80 6, 412 54.12 32.50? -0.81 What was the previous day's closing price?$50.10 $51.32 $49.32 $48.74