u have taken a long position in a call option on IBM common stock. The option has an exercise price of $176 and IBM’s stock currently trades at $180. The option premium is $5 per contract. How much of the option premium is due to intrinsic value versus time value?

Q: of the option is traded at $105 per share at the same time. The option ths and has a strike price of…

A: Intrinsic value of put option can be calculated from strike price and spot prices.

Q: Q1. You have purchased a call option on Johnson & Johnson common stock. The option has an exercise…

A: Call Options are financial contracts that give the buyer an option to buy particular security,…

Q: You wrote a call option on the stock of PIGN at a strike price was $55.55. The premium you received…

A: Position of call option writer is exactly opposite of call option holder. Seller will receive option…

Q: ou have purchased a put option on ABC common stock for $3 per contract. The option has an exercise…

A: Profit on put is the difference between the exercise price of put option and closing price of put…

Q: The value of an option is $5.64, its theta is 0.03. What will be the expected price of the option on…

A: The rate at which the value of an option declines with time is called as theta. It is written as a…

Q: Previously, you purchased a European call option on Parlicoot Inc shares. The option has just…

A: Call option payoff is calculated using following equation Call option payoff = Max(0,ST-K) Where, ST…

Q: EStIon20 You have purchased a put option on ABC common stock for $3 per contract. The option has an…

A: Puts give the buyer the right, but not the obligation, to sell the underlying asset at the strike…

Q: You just purchased Stock X at $40 and a put option at $1. The strike price of the put is $37. (a)…

A: A put option buyer or put option holder always expects the price of the asset under the option may…

Q: Suppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put…

A: Here,Exercise Price of Call Option is $450Exercise Price of Put Option is $430Spot Price is $460

Q: The current market price of a share of a stock is $58.33. Both call and put options on this stock…

A: Current market price = $58.33 Strike price = $70

Q: An investor buys a put option with an exercise price of $40 when the stock price is $42. The option…

A: to sell the stock at the given strike price, if the stock price comes below the strike price, the…

Q: The hedge ratio of an at-the-money call option on IBM is 0.36. The hedge ratio of an at-the-money…

A: Given, Hedge ratio of the at-the-money call option on IBM = 0.36 Hedge ratio of the at-the-money put…

Q: Suppose that you purchased a call option on the S&P 100 Index. The option has an exercise price of…

A: The option contract is a type of derivative contract which provides you with the right to purchase…

Q: You purchase a call option on Stock A with an exercise price of $85 for a premium of $1.9. You hold…

A: A call option is right to purchase a stock at the strike price  when spot price is less than…

Q: Suppose you own a call option on a stock with a strike price of $20 that expires today. The price of…

A: Call option gives the right to the owner of the option to buy an underlying asset at the price…

Q: You wish to build a synthetic long call for Microsoft stock with a strike price of $40.00 and an…

A: In synthetic long call positions, one buy stock and also buy put option and create call type…

Q: Whats the profit of the "Straddle" when stock price is $15, $20, $25, $30, $35, $40, $45, $50, $55,…

A: In the given question we require to calculate the profit of the "Straddle" when stock price is $15,…

Q: You are long in a put option with an exercise price of $60. What is the value of the put at…

A: Given that the exercise price is $60:If the stock price at maturity is below $60, the put option is…

Q: Suppose that you purchased a call option on the S&P 100 Index. The option has an exercise price of…

A: A call option is a contract which gives the buyer right to buy a certain quantity of an underlying…

Q: Suppose you bought a put option with a strike price of $21 for $3. What would be your profit from…

A: A put option gives the owner the right, but not the obligation, to sell the underlying asset at the…

Q: You have purchased a put option on ABC common stock for $3 per contact. The option has an exercise…

A: Given: Put option value = $3 Exercise price = $57 Stock price = $45…

Q: A PUT and a CALL option are written on a stock with a strike price of $60. The options are held…

A: Strike Price = $60 Spot price = $75 Call premium = $16 Put Premium = $3

Q: The value of an option is $6.24, its delta is 0.5, and the price for the underlying stock is $82.…

A: Delta of an Option helps in determining the change in value of an option due to change in price of…

Q: You have taken a long position in a call option on Google common stock. The option has an exercise…

A: Intrinsic value = ($ 15) refer step 2 for explanation

Q: You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise…

A: Put option is the right but not the obligation of the holder to sell the underlying asset at its…

Q: A put option on Snapple Beverage has an exercise price of $30. The current stock price of Snapple…

A: A put option can be in the money, out of the money and at the money. It will depend on the amount of…

Q: Pick up the one(s) that can be contracted as OTC product. Choose all the correct answers. V Equity…

A: “Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the…

Q: Suppose you write 46 call option contracts with a $80 strike. The premium is $5.61. Evaluate your…

A: An options holder may exercise their right to buy or sell the contract's underlying shares at a…

Q: A speculator purchased a call option with an exercise price of $35 for a premium of $4. The option…

A: We have to find the return on the long call position.

Q: The stock price of Google is $32. The price of an American call option with strike price $32 and a…

A: Put-call parity is a concept that is employed in defining the link between the value of European…

Q: You have purchased a put option on Pfizer common stock. The option has an exercise price of $45 and…

A: Since strike price is lower than stock price , option will not be exercised.Premium paid will be…

Q: You purchased a put option on M common stock. The option has an exercise price of $49 and M's stock…

A: Introduction:Put option gives the holder the right, but not the obligation to sell a specified…

Q: Brighton Memory’s stock is currently trading at $50 a share. A calloption on the stock with a $35…

A: Computation:

Q: Calculate the value of a European put option on Apple stock. You are given the following parameter…

A: The exercise price, "K" is $115.  The interest rate , "rate" is 4%. The current stock price, "S" is…

Q: stock has a spot price of $35. Its May options are about to expire. One of its puts is worth $5 and…

A: Options are derivative products that means these derive value from underlying assets and gives…

Q: In follow an Ito process with >0, a stock is worth $80 today, if the price of an option that pays…

A: To price the option, we need to use the Black-Scholes formula, which is a mathematical formula used…

Q: Suppose you own a put option on Apple stock with a strike price of $150. Suppose it is the…

A: Stock price at expiration = $75Exercise price = $150

Q: Suppose you buy one SPX call option contract with a strike of 2200. At maturity, the S&P 500 index…

A: Solution:- Buying a call option means purchasing a right to buy the underlying asset at strike…

Q: A put option with an exercise price of $45 is currently selling for $5. The delta for the put is…

A: The elasticity of a put option can be calculated using its delta. Elasticity  measures the…