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The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,500. Exercise Price Expiration Date July 2018 Call Price Put Price $1,400 1,500 1,600 1,400 1,500 $165.70 $ 53.75 106.00 98.00 64.55 158.05 January 2019 214.00 88.25 157.35 135.25 1,600 114.00 192.00 Required: a. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. b. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,350. c. Are the prices of the January 2019 options more or less than those of the corresponding July 2018 options. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) Payoff Profit 1. Call option with exercise price of $1,400 ii. Put option with exercise price of $1,400 iii. Call option with exercise price of $1,500 iv. Put option with exercise price of $1,500 V. Call option with exercise price of $1,600 vi. Put option with exercise price of $1,600 Required A Required B >

The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,500. Exercise Price Expiration Date July 2018 Call Price Put Price $1,400 1,500 1,600 1,400 1,500 $165.70 $ 53.75 106.00 98.00 64.55 158.05 January 2019 214.00 88.25 157.35 135.25 1,600 114.00 192.00 Required: a. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. b. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,350. c. Are the prices of the January 2019 options more or less than those of the corresponding July 2018 options. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) Payoff Profit 1. Call option with exercise price of $1,400 ii. Put option with exercise price of $1,400 iii. Call option with exercise price of $1,500 iv. Put option with exercise price of $1,500 V. Call option with exercise price of $1,600 vi. Put option with exercise price of $1,600 Required A Required B >

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 4P
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The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,500. 重寶寶 Exercise Expiration Date July 2018 Price Call Price Put Price $ 53.75 $1,400 1,500 $165.70 106.00 98.00 64.55 1,600 1,400 1,500 1,600 158.05 January 2019 214.00 88.25 157.35 135.25 114.00 192.00 Required: a. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. b. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,350. c. Are the prices of the January 2019 options more or less than those of the corresponding July 2018 options. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) Payoff Profit i. Call option with exercise price of $1,400 ii. Put option with exercise price of $1,400 iii. Call option with exercise price of $1,500 iv. Put option with exercise price of $1,500 V. Call option with exercise price of $1,600 vi. Put option with exercise price of $1,600 < Required A Required B >
Transcribed Image Text:The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,500. 重寶寶 Exercise Expiration Date July 2018 Price Call Price Put Price $ 53.75 $1,400 1,500 $165.70 106.00 98.00 64.55 1,600 1,400 1,500 1,600 158.05 January 2019 214.00 88.25 157.35 135.25 114.00 192.00 Required: a. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. b. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,350. c. Are the prices of the January 2019 options more or less than those of the corresponding July 2018 options. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) Payoff Profit i. Call option with exercise price of $1,400 ii. Put option with exercise price of $1,400 iii. Call option with exercise price of $1,500 iv. Put option with exercise price of $1,500 V. Call option with exercise price of $1,600 vi. Put option with exercise price of $1,600 < Required A Required B >
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