Use the following quotes for Target stock options:CallsLast29.00y14.259.655.102.85TickerTGT 3/18/22 C200TGT 3/18/22 C210TGT 3/18/22 C220TGT 3/18/22 C230TGT 3/18/22 C240TickerTGT 3/18/22 P200TGT 3/18/22 P210TGT 3/18/22 P220TGT 3/18/22 P230TGT 3/18/22 P240Source: Bloomberg Finance L.P.Total costBid20.1513.45$8.354.852.70Bid5.008.3012.8519.1526.05Ask21.6013.808.655.152.95249Ask5.158.5013.4519.8027.80PutsLast4.958.3512.5518.4925.83IVM Volume35.0732.5831.3431.0731.08IVM34.1632.3531.3430.0628.4416203516If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how muchwould this cost you?Note: Do not round intermediate calculations. Round your answer to the nearest whole number.Volume1838695

Number of shares purchased = 3,000Strike price = $210Ask price = $8.50

Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Ask 21.60 13.80 8.65 5.15 2.95 Bid 5.00 8.30 12.85 19.15 19.80 26.05 27.80 Ask 5.15 8.50 13.45 Calls Last 29.08y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5 If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how much would this cost you? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Ask 21.60 13.80 8.65 5.15 2.95 Bid 5.00 8.30 12.85 19.15 19.80 26.05 27.80 Ask 5.15 8.50 13.45 Calls Last 29.08y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5 If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how much would this cost you? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

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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19. Which is the correct bar chart if the stock's opening price is P15, closing price is P25, highest price is P30, and lowest price is P10? a. d.
Define target stock or targeting stock
Call options on a stock are available with strike prices of $15, $17.5 and $20 before expiration date. The call premiums for each are $4, $2 and $0.5 respectively. Explain how the options can be used to create a butterfly spread. A. Construct a table showing how profit varies with stock price for the butterfly spread. B. Plot the profit with stock price for the butterfly spread. List the profit formula for each trend.
The following limit orders for the XYZ stock have been submitted to the opening auction at the LSE: XYZ Limit Order Book Price Buys 21 20.875 20.75 20.625 20.50 20.375 20.25 20.125 20 10 15 20 10 5 10 What is the market clearing price? O A. some other price OB. 20.50 OC. 20.25 OD. 20.375 OE. 20.125 Sells 20 5 5 5 10 20 30
Use the binomal option pricing model to estimate the Call price. Stock price (S) $120.00 Stock price up (Su) $170.00 Stock price down (Sd) $50.00 Strike price (K) $120.00 rf 1.0% Call price up (Cu) Call price down (Cd) D PV(B) Call price (C)
Consider the following options on stock X: Option Delta Gamma Vega A 0.5 2.2 1.8 В 0.8 0.6 0.2 C -0.40 1.3 0.7 D 0.70 1.8 1.4 A bank is long 1000 units of Option A, short 200 units of Option B, short 2000 units of Option C, and short 500 units of Option D. The following two options are also available in the market: Option Delta Gamma Vega E 0.6 1.5 0.8 F 0.1 0.5 0.6 a) Design one strategy that would make the bank's portfolio delta neutral. b) Design one strategy that would make the bank's portfolio delta and gamma neutral. Explain why this strategy provides a better hedge with respect to changes in the price of stock X than the strategy you constructed in part (a). c) Design one strategy that would make the bank's portfolio delta, gamma, and vega neutral.
Demonstrate the impact of different values on a market value weighted stock index with a hypothetical example considering three stocks (stock A, B and C), no. of shares and price for base year 2020 and for the year 2021 with two different cases Case A and Case B ( base year index value as 100)
Assume that you have been given the following information on Purcell Corporation's call options: Inputs Intermediate Calculations Current stock price = $12 d1 = 0.32863 Time to maturity of option = 9 months d2 = 0.05477 Variance of stock return = 0.10 N(d1) = 0.62878 Strike price of option = $12 N(d2) = 0.52184 Risk-free rate = 7% According to the Black-Scholes option pricing model, what is the option's value? Do not round intermediate calculations. Round your answer to the nearest cent. Use only the values provided in the problem statement for your calculations. $
A call option on a stock trading at $58 has an exercise price of $47. The call option is _____ Check all that apply A. in the money B. out of the money C. at the money
Consider a market value-weighted index with only 3 stocks: Stock A, Stock B, and Stock C. The current shares and current prices, as well as the original number of shares and original prices, of the stocks are summarized in the following table: Current Shares Current Price Original Shares Original Price Stock A Stock B Stock C 300 100 200 Assuming the base value is 100, the index level is $48 $69 $91 100 100 100 $28 $79 $51 Round your answer to 4 decimal places.
Assume that there are three different put options on a stock available and that all of them have the same expiration date. These three options have the following market prices $6, $3, and $1, and strike prices $40, $35, and $30, respectively. Construct a butterfly spread and show the relevant profits and losses. The use of graph is essential.
Describe how a typical stock option plan works. What are someproblems with a typical stock option plan?

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