WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price of $110 for $8 each. a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date? b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date? What will be your total $ and % gain/loss if WRE price is $100 at the expiration date? C.

WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price of $110 for $8 each. a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date? b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date? What will be your total $ and % gain/loss if WRE price is $100 at the expiration date? C.

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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Question

1. WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike
price of $110 for $8 each.
a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date?
b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date?
C. What will be your total $ and % gain/loss if WRE price is $100 at the expiration date?

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← A 8-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.05 can be purchased for $512. Assuming that the market price of Home Depot stock rises to $65 11 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? The profit this option would generate over the 8-month holding period is $ (Round to the nearest cent.) Correc
$80. The call premium is $6 and the put premium is $8. To keep thìngs simple, you can assume each contract allows the holder to buy or sell 13) You buy one call contract and also buy one put contract, both with the strike price of one (rather than the typical 100) share of the underlying stock. a. Compute the payoff to your option position if the stock price is $92 when the options expire. b. Compute the profit you made if the stock price is $92 when the options еxpire. c. What would happen to the value of your position if the volatility of returns for the underlying stock increases a day after you bought the call and the put? Please explain your answer for full credit. E FC MacBook Pro I A !!!
You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? O a. -190,946.52 Ob. -31,824.42 Oc. -190,800.00 O d. -190,873.26 Oe. -55,800.00 You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? O a -190,946.52 Ob 31,824.42 O-190,800.00 Od 190,873.26 -55.800.00
Pls explain and show every step
You buy 1 put contract with a strike price of $60 on a stock which you own 100 shares. What are the expiration total values for this position (100 stock shares plus 1 put contract) for prices of $50 and $60 if the put premium is $1.80?
Put–call parity (S21-1) It is possible to buy three-month call options and three-month puts on stock Q. Both options have an exercise price of $60 and both are worth $10. If the interest rate is 5% a year, what is the stock price?
Three months ago, you sold a put option contract on Swiss franc with a strike price of $.60/SF and an option price of $.0060 per SF. Contract size is 10,000 SF. The option expires today when the value of Swiss franc is $.625. What is your total profit or loss on your investment? A. -$310 B. -$60 C. $0 D. $60
You purchased two contracts of "ABA December 11 2015 72.00 Put" at $4.20 per option and exercise it when the underlying stock price was $65.50. What is your profit and return on the investment, excluding the commissions?
If you are long 2 contracts on 1-year TSLA call option with strike price of $400, what will be your payoff at expiry if the TSLA price at that time is (i) $200 , (ii) $450 , and (iii) $1000 . 1 contract is 100 shares.
Please show how to solve this step by step. ESS is currently trading at $300/share. You bought 200 shares of ESS and sold 2 CALL-option contracts on ESS with a strike price of $330 for $15 each. a. What will be your total $ and % gain/loss if ESS price is $335 at the expiration date?b. What will be your total $ and % gain/loss if ESS price is $350 at the expiration date?c. What will be your total $ and % gain/loss if ESS price is $270 at the expiration date?
Give typing answer with explanation and conclusion

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