The following are call option premiums and futures settlement prices for ICE cotton. These prices were quoted on December 16th, 200X. These prices are used in problems 25 through 29 (recopied here for your convenience). Strike Price (cents/lb). 48.00 49.00 50.00 51.00 52.00 53.00 Futures close Mar-0X 2.56 1.98 1.48 1.09 .78 .55 49.60 May-OX 6.14 5.33 4.59 3.92 3.31 2.74 53.69

The following are call option premiums and futures settlement prices for ICE cotton. These prices were quoted on December 16th, 200X. These prices are used in problems 25 through 29 (recopied here for your convenience). Strike Price (cents/lb). 48.00 49.00 50.00 51.00 52.00 53.00 Futures close Mar-0X 2.56 1.98 1.48 1.09 .78 .55 49.60 May-OX 6.14 5.33 4.59 3.92 3.31 2.74 53.69

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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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
M4
Use the following corn futures quotes: Contract Month Mar May July Sep Corn 5,000 bushels Low High Settle Chg Open Int Open 455.125 457.000 451.750 452.000 -2.750 597,913 467.000 468.000 463.000 463.250 -2.750 137,547 477.000 477.500 472.500 473.000 -2.000 153,164 475.500 471.750 472.250 -2.000 29,258 475.000 a. How many of the July contracts are currently open? b. How many of these contracts should you sell if you wish to deliver 130,000 bushels of corn in July? contracts If you actually make delivery, how much will you receive? Assume you locked in the settle price. $ (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Give typing answer with explanation and conclusion
The following table shows the options quotation in U.S. dollars for Big Walnut Nut Company for June 30 of this year. Option Closing Price Strike Price Calls–Last Quote September Puts–Last Quote September 1 $43.00 $47.00 $2.00 $2.20 2 $43.00 $41.00 $3.00 $1.20 3 $43.00 $49.00 $1.60 $2.60 If you could exercise the options listed only on the expiration date (the third Friday of September), then these options would be ____ options. Assuming that the options listed are American options, on June 30, which of the call options for Big Walnut Nut Company listed in the table is in-the-money? Option 2 Option 1 Option 3
Cc. 190.
Consider the following prices, volume and open interest for gold futures contracts. Contract size: 100 oz Price units: $/oz (a) Which contract reached the highest price on this trading day? What was its contract value at that price? (b) Why is the high price equal to the low price for the contract expiring in October 2022?
Show graphically and in a table the profit and futures price relationships at expiration for the following positions on a November corn futures options with an exercise price of $4.00/bushel, contract size of 5,000 bushels, and call and put prices of $0.50/bushel. Include in your graphical analysis and table futures prices of $3.00, $3.25, $3.50, $3.75, $4.00, $4.25, $4.50, $4.75, $5.00, $5.25, and $5.50: a. Call purchase b. Put purchase c. Straddle write (Evaluate from prices from $2.50 to $5.50 by steps of $0.25)
Assume that on Friday August 1, you sell one Chicago Board of Trade September Treasury bond futures contract at the opening price of $97000. The initial margin requirement is $2500 and the maintenance margin requirement is $2000. The settlement price of the contract at closing on that day is $97500. Your margin account balance at the end of the day is $ . Question 15 options:

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