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today, so the stock is less likely to How much net premium lignoring commissions) does the client receive from the collar on all shares?

today, so the stock is less likely to How much net premium lignoring commissions) does the client receive from the collar on all shares?

Essentials Of Investments
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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H5. current price of $50
Refer to the options chain beld Option prices T-1 x Call Put 65.00 2.96 16.04 62.50 3.49 60.00 4.10 57.50 4.80 55.00 5.62 8.99 $2.50 6.55 7.50 50.00 7.61 613 47.50 8.80 4.90 45.00 10.15 3.82 42.50 11.64 2.88 40.00 13.28 2.10 37.50 15.07 1.46 35.00 17.01 0.98 Your client owns 200.000 shares of this stock and is concerned about the stock declining, but she can't afford long puts on so many shares. You suggest a collar starting with puts $5 out of the money. O $6,000 Select the call contract which would work best for a collar assuming the client does not want to spend any money out of pocket. She wants calls that are furthest from the current price of the stock today, so the stock is less likely to be called away if it goes up in price. How much net premium lignoring commissions) does the client receive from the collar on all shares? ○ 33.600 O 336.000 14.14 O 820:000 12.33 10.60 33.333
Transcribed Image Text:Refer to the options chain beld Option prices T-1 x Call Put 65.00 2.96 16.04 62.50 3.49 60.00 4.10 57.50 4.80 55.00 5.62 8.99 $2.50 6.55 7.50 50.00 7.61 613 47.50 8.80 4.90 45.00 10.15 3.82 42.50 11.64 2.88 40.00 13.28 2.10 37.50 15.07 1.46 35.00 17.01 0.98 Your client owns 200.000 shares of this stock and is concerned about the stock declining, but she can't afford long puts on so many shares. You suggest a collar starting with puts $5 out of the money. O $6,000 Select the call contract which would work best for a collar assuming the client does not want to spend any money out of pocket. She wants calls that are furthest from the current price of the stock today, so the stock is less likely to be called away if it goes up in price. How much net premium lignoring commissions) does the client receive from the collar on all shares? ○ 33.600 O 336.000 14.14 O 820:000 12.33 10.60 33.333
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