Question

-You wrote a put option on AAPL stock with a strike price of $140 and a put premium of $17.35. The stock price at expiration is $115.00. What is your profit or loss?

- You bought a put option on the SPY ETF with a strike price of $195 and a put premium of $0.95. The stock price at expiration is $190.50. What is your profit or loss?

-You took a “bear spread” position on the VXX EFT by buying a put option with a strike price of $25 and a put premium of $5.00 and writing a put option with a strike price of $20 and a put premium of $2.05. The stock price at expiration is $20.50. What is your profit or loss?

Answer #1

You write an put option on JNJ stock with a strike price of $60
put, for a premium of $5. The stock price of JNJ is $58 at the
expiration date. Ignoring transactions costs, what is your profit
of writing this option?
Group of answer choices
$3
$2
$5
$0
$7

Intel stock price is $21 and Intel stock put
option with a strike price X=$25 and August expiration has
a premium P=$5.5 as of right now. You just bought the put
option at P=$5.5 and will hold it till the expiration date.
1) For the option premium, how much are the intrinsic value and
time value? (4 points)
2) What would be your profit / loss if the stock price of Intel
is $30 on the expiration date? (3 points)...

You purchased a put with a strike price of $37.5 and an option
premium of $0.45. You simultaneously bought the stock at a price of
$36 a share. What is your profit per share on these transactions if
the stock price at expiration is $33.50?

You buy a call option and buy a put option on bond X. The strike
price of the call option is $90 and the strike price of the put
option is $105. The call option premium is $5 and the put option
premium is $2. Both options can be exercised only on their
expiration date, which happens to be the same for the call and the
put.
If the price of bond X is $100 on the expiration date, your...

Suppose you buy a stock, buy a put option with a strike price of
$80 on the stock, and write a call option on the stock with a
strike price of $100. What is the total payoff (not profit) if the
stock price at expiration is $125?

The price of a stock is $61 and a call option with a strike
price of $60 sells for $5 (i.e.,
the option premium is $5.). *SHOW WORK*
(a) What is the option’s intrinsic value?
(b) What is the option’s time premium?
(c) You purchased the call for $5. If, at the expiration of the
call, the price
of the stock is $66, what is the profit (or loss) from buying
the call?
(d) You purchased the call for $5....

The stock price of BAC is currently $150 and a put option with
strike price of $150 is $10. A trader goes long 300 shares of BAC
stock and long 3 contracts of the put options with strike price of
$150.
a. What is the maximum potential loss for the trader?(sample
answer: $105.75)
b. When the stock price is $161 on the expiration, what is the
trader’s net profit?(sample answer: $105.75)

An investor purchases one call option (strike price $43 and
premium $1.20) and purchases 3 put options (strike price $43 and
premium $1.65) on the same underlying stock. What is the investor's
total profit or loss (enter profit as positive or a loss as a
negative value) per share if the stock price at expiration is
$21.15?

Assume a put option on euros is written with a strike price of
$1.0800/€ at a premium of $0.0038/€ and with an expiration date
three months from now. The option is for €100,000. Calculate your
profit or loss should you exercise before maturity at a time when
the euro is traded spot at $1.2500/€, $1.0100/€, $1.1000/€,
$1.2500/€.

Suppose you bought one put option for one ounce of gold with a
strike price of $1,550 per ounce. You paid a premium of $7 for this
option and you held the option until expiration. Suppose the market
price of gold is $1,500 per ounce at expiration. What is your gain
or loss on the option contract?

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