Question

Suppose you write 40 put option contracts with a $40 strike. The premium is $4.08. Evaluate...

Suppose you write 40 put option contracts with a $40 strike. The premium is $4.08. Evaluate your potential gains and losses at option expiration for stock prices of $30, $40, and $50. (Input all amounts as positive values. Omit the "$" sign in your response.)

          

  Stock price of $30 (Click to select)  loss  gain of $   
  Stock price of $40 (Click to select)  loss  gain of $   
  Stock price of $50 (Click to select)  gain  loss of $   
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose you write 16 put option contracts with a $80 strike. The premium is $2.40. Evaluate...
Suppose you write 16 put option contracts with a $80 strike. The premium is $2.40. Evaluate your potential gains and losses at option expiration for stock prices of $70, $80, and $90.
-You wrote a put option on AAPL stock with a strike price of $140 and a...
-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...
Suppose I sell 3 PUT option contracts on Home Depot with a strike price of $185.00...
Suppose I sell 3 PUT option contracts on Home Depot with a strike price of $185.00 and an option premium of $2.32. The stock price is $209.45 when I sell the puts, and it and moves between $199.24 and $215.43 during the time up to expiration. What is my profit or loss on this?
Tesla stock is currently selling for $650 per share. Suppose you write 9 call option contracts...
Tesla stock is currently selling for $650 per share. Suppose you write 9 call option contracts with a $675 strike for a premium of $14. a) Are these contracts in the money or out of the money? b) What is the intrinsic value of these contracts? c) What is the time-value of these contracts? d) What is your gain or loss if at expiration the stock price is $670? e) What is your gain or loss if at expiration the...
David buys a put option on pound with a strike price of $1.8500/₤ at a premium...
David buys a put option on pound with a strike price of $1.8500/₤ at a premium of 2.60¢ per pound ($0.0260/₤) for an expiration date three months from now. The option contract is for ₤62,500. What is David’s gains/losses if the spot rate is $1.9700/₤?
You purchase 13 call option contracts with a strike price of $75 and a premium of...
You purchase 13 call option contracts with a strike price of $75 and a premium of $2.90. Assume the stock price at expiration is $82.46. a. What is your dollar profit? (Do not round intermediate calculations.) b. What is your dollar profit if the stock price is $68.41? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.)
3. Suppose you buy a call and put option that has the same strike price of...
3. Suppose you buy a call and put option that has the same strike price of $75 and same maturity. Call costs $5 and put costs $4. Graph the profits and losses at expiration for different stock prices? (You need to draw call and put in the same graph) If the stock price at maturity is $80, what is your profit or loss?
Suppose you bought one put option for one ounce of gold with a strike price of...
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?
An investor bought a 40-strike European put option on an index with 2 year to expiration....
An investor bought a 40-strike European put option on an index with 2 year to expiration. The premium for this option was 3. The investor also wrote an 50-strike European put option on the same index with 2 year to expiration. The premium for this option was 7. The continuously compounded risk-free interest rate is 8%. Calculate the index price at expiration that will allow the investor to break even.
You purchased a put with a strike price of $37.5 and an option premium of $0.45....
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT