The share price of a ABC company on May 15 is 57 $. A trader buys 100 call options on the shares with a strikeprice of 60 $ when the option price is 2 $. The options are exercised when the stock price is $65. What wil lbe the trader’s net profit? Выберите один ответ: a. 300$ b. 295$ c. 650$ d. 500$ e. 350$

The share price of a ABC company on May 15 is 57 $. A trader buys 100 call options on the shares with a strikeprice of 60 $ when the option price is 2 $. The options are exercised when the stock price is $65. What wil lbe the trader’s net profit? Выберите один ответ: a. 300$ b. 295$ c. 650$ d. 500$ e. 350$

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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You short sell 1,000 shares of RAJ stock at a price of $70. Your initial margin is 50%. If you cover your RAJ short position at a price of $65, how much is your return? A. 14.29% B. 12.31% C. 17.39% D. 15.65%
12. The price of a stock on July 1 is $57. A trader buys 100 call options on the stock with a strike price of $60 when the option price is $2. The options are exercised when the stock price is $65. The trader’s net profit is A. $700 B. $500 C. $300 D. $600
Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: $102 $100 $6 $100 $3 If an investor writes a put, the amount received is $
Consider a December 310 call and a December 310 put, both on a stock that is currently selling for $340/share. Calculate how much these options are in or out of the money.
Mr. A bought a put option of 6 months for a price of $50. The strike price is $150. At the end of 6 months, the stock is selling for a price of $180. Calculate the profit/loss from the option. A. Profit of $30 B. Loss of $20 C. Loss of $50 D. Profit of$50
Bha
Stock Price to Profit You buy an “at the money” April call option on M&M Corp. common stock, which has a strike price of $40 and a premium of $3.15. What must happen to the price of M&M Corp. stock for you to make a profit?
A company has earnings per share of $3.75 and P/E of 47. What is the stock price? Question 12 options: $174.08 $176.25 $185.95 $112.98
An investor has exchange-traded put options to sell 100 shares for $20. There is a $1 cash dividend declared. Which of the following is the position of the investor after the cash dividend? Put options to sell 100 shares for $21.00 Put options to sell 100 shares for $20.00 Put options to sell 105 shares for $19.00 Put options to sell 105 shares for $19.05
An investor owns Citibank stock at $75. They want to sell some 3-month out- of-the-money call options against their position. STRIKES 72.50 75 77.50 CALL PRICE 5.60 4.12 2.84 Create a table showing the profit and loss for underlying trading at 70, 72.5, 75, 77.5, 80 and 82.5 for all the positions and the option strategy. Draw an expiry pay-off diagram, using the prices in the table.
Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: The maximum the seller of the put can lose is $ $102 $100 $6 $100 $3
Given the following information, price of a stock: strike price of a six-month call: market price of the call: strike price of a six-month put: market price of the put: $102 $100 $6 $100 $3 The maximum amount a short seller (of the stock) can profit is $

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