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/€.

1. You buy a put option with strike price of $25. Currently, the
market value of the underlying asset is $30. The put option premium
is $3.25. Assume that the contract is for 150 units of the
underlying asset. Assume the interest rate is 0%. a. What is the
intrinsic value of the put option? b. What is the time value of the
put option? c. What is your net cash flow if the market value of
the options’ underlying...

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