Refer to Figure 15.1 which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following June 2017 expiration options on a single share, assuming that the stock price on the expiration date is $66. (Leave no cells blank - be certain to enter "O" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.) Payoff Profit/Loss a. Call option, X = 70 b. Put option, X = 70 C. Call option, X = 72 d. Put option, X = 72 Call option, X = 74 f. Put option, X = 74 e.

Refer to Figure 15.1 which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following June 2017 expiration options on a single share, assuming that the stock price on the expiration date is $66. (Leave no cells blank - be certain to enter "O" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.) Payoff Profit/Loss a. Call option, X = 70 b. Put option, X = 70 C. Call option, X = 72 d. Put option, X = 72 Call option, X = 74 f. Put option, X = 74 e.

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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1. If you had bought the January put with exercise price $105, will you exercise your put? 2. What is the profit (loss) on your position?
There are three stocks in the index alpha, beta, and gamma. The stocks sell for $102 $345 and $87 respectively. If beta undergoes a 3 for 1 stock split, what is the new divisor for the price weighted index? (a) 2.34 (b) 7.81 (c) 1.71 (d) 2.07
You purchased a call option on TSLA with an exercise price of $180 for a premium of $5.0 and held it until the expiration date. What is your profit (per share) if the stock sells for $192 on the expiration date? Enter your answer without the dollar sign. Your Answer: Answer
The database is mentioned in the attachment:Ques) Draw a profit diagram for an investor in a call option with an exercise price of 64 that expires in March and explain the diagram. Undertake the same analysis for the writer of the call. Comment on the contention that options are a zero sum game for the writer and investor in options.
Google puts with 1 year to expiration and an exercise price of $680 trade for $27. Google calls with 1 year to expiration and an exercise price of $680 trade for $45. The interest rate over 1 year is 1%. Assume all options are European and Google pays no dividends. Using the put-parity condition, the stock price is equal to $691.27. a) In one month, the stock price remains the same as given above. Is the call option value lower, higher, or the same. Explain briefly.
There are 2 parts to this question please read and answer carefully using the table provided.
The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for $1,200. Exercise Price Expiration Date April 2018 Call Price Put Price $ 31.10 $1,200 1,300 1,400 $1,200 1,300 1,400 $1,200 1,300 1,400 $132.70 73.20 70.10 134.20 $ 53.55 96.00 33.00 July 2018 $161.70 104.00 62.55 156.05 January 2019 $210.00 $ 88.05 155.35 133.25 112.00 190.00 Suppose that by January 2019, the price of Amazon could either rise from its January 2018 level to $1,200 × 1.25 = $1,500.00 or fall to $1,200/1.25 = $960.00. a. What would be your percentage return on a January expiration call option with an exercise price of $1,200 if the stock price rose? (Round your answer to 2 decimal places.) b. What would be your percentage return if the stock price fell? (Negative value should be indicated by a minus sign.) c. Which is riskier: the stock or the option? a. Percentage return b. Percentage return Which is riskier: the stock or the option? % (100) % Option C.
Consider the three stocks in the following table. P+ represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. PO 98 58 100 51 103 e 200 116 200 53 126 100 200 200 103 100 53 63 200 400 Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round Intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted Index Rate of return An equally weighted index ate of return % %
You write a put with a strike price of $60 on stock that you have shorted at $60 (this is a “covered put”). What are the expiration date profits to this position for stock prices of $50, $55, $60, $65, and $70 if the put premium is $1.80? (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.) Stock price Short profit Put payoff Put profit Net profit $50.00 $55.00 $60.00 $65.00 $70.00
The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,210. Exercise Price $1,210 1,310 1,410 Expiration Date July 2018 Call Price $161.90 104.10 62.65 a. Call option with exercise price of $1,210 b. Put option with exercise price of $1,210 C. Call option with exercise price of $1,310 d. Put option with exercise price of $1,310 e. Call option with exercise price of $1,410 f. Put option with exercise price of $1,410 Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $1,305. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) Put Price $53.56 96.10 156.15 Payoff Profit
Vijay
You are given the following information concerning the trades made on a particular stock. Calculate the money flow for the stock based on these trades. Note: Leave no cells blank - be certain to enter "O" wherever required. A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole number. Price $ 30.33 Volume 30.36 3,600 30.34 3,100 30.33 3,500 29.34 3,650 30.33 4,400 30.24 4,700 Price Up or Down Price Times Volume Positive Money Flow Negative Money Flow Net Money Flow $ 30.33 30.36 30.34 30.33 29.34 30.33 30.24 Money flow at the end of the day

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