Suppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put option on the same underlying with an exercise price of $430. Today the price of S&P 500 Index ETF is $460. Which of the following is correct? Choose only one: The payoffs of your call option and put option, respectively, today are $10 and $30. The payoffs of your call option and put option, respectively, today are $10 and –$30. The payoffs of your call option and put option, respectively, today are $10 and $0. The payoffs of your call option and put option, respectively, today are –$10 and $30. NONE of the above.
Suppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put option on the same underlying with an exercise price of $430. Today the price of S&P 500 Index ETF is $460. Which of the following is correct? Choose only one: The payoffs of your call option and put option, respectively, today are $10 and $30. The payoffs of your call option and put option, respectively, today are $10 and –$30. The payoffs of your call option and put option, respectively, today are $10 and $0. The payoffs of your call option and put option, respectively, today are –$10 and $30. NONE of the above.
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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Suppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put option on the same underlying with an exercise price of $430. Today the price of S&P 500 Index ETF is $460. Which of the following is correct? Choose only one:
- The payoffs of your call option and put option, respectively, today are $10 and $30.
- The payoffs of your call option and put option, respectively, today are $10 and –$30.
- The payoffs of your call option and put option, respectively, today are $10 and $0.
- The payoffs of your call option and put option, respectively, today are –$10 and $30.
- NONE of the above.
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