Question

Suppose you bought a call option with a strike price of $30 and
you wrote a call option with a strike price of $35. If the first
option sells for $2 and the second option sells for $1, which price
range below will guarantee the maximum profit?

Answer #1

You bought a call option on July 27,
2020 at the exercise price of $65. It expires on October 26, 2020.
The stock currently sells for $66., while the call option sells for
$6.
A stock that is currently selling
for $47 has the following six-month options
outstanding:
Strike Price
Market Price
Call Option
$45
$4
Call Option
$50
$1
Which option(s) is (are) in the money?
Which option(s) is (are) at the money?
Which option(s) is (are) out of...

You bought a call option for $30. The strike price of the option
is 200 dollars.With a share price of $250, how much will you
win/loss? explain.

-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...

You bought a call option for $50. The strike price of the option
is 200 dollars. If the share price is 250 dollars, how much will
you win/loss? explain.

Please explain work
Suppose you bought a CALL option on a share of Tesla stock
(Strike Price $200, Expiration Date 11/1/2020) today for a price of
$4.99. On the expiration date, the price of a share of Tesla is
$300. Answer the following questions using the information
above.
Is it in your best interest to exercise the CALL option?
Why?
What is your Payoff?
Your profit is (nearest dollar)?

Joshua wrote a call option on GBP for USD 0.022 per unit. The
strike price is 1.3875 and the spot rate at the time the option
maturity is GBP/USD 1.4225, i.e. the price of 1 for GBP. There are
62,500 units in one GBP option. What was Joshua's net profit/loss
on this option?
a.
Loss of USD 812.50
b.
Profit of USD 1187.50
c.
Profit of USD 1312.50
d.
Loss of USD 2500

Suppose you sell a 45-strike call option at the price of
$2.7804, the current stock price is $40 and the call option Δ =
0.5824. The annualized continuously compound interest rate is 8%.
If the option is on 100 shares, what investment is required for a
delta-hedged portfolio? What is your overnight profit/loss if the
stock tomorrow is $40.5 (where call price is $3.0621, and Δ =
0.6142)? On day 2, What is your overnight profit/loss if the stock
price...

1. A call option with a strike price of $35 on ABC stock expires
today. The current price of ABC stock is $30. The call is:
2. A put option with a strike price of $35 on ABC stock expires
today. The current price of ABC stock is $30. The put is:
a. at the money
b. out of the money
c. in the money
d. none of the above

Suppose a trader buys a call option with a strike price of $30
and a premium of $3.03. When the option was purchased (three months
previous), the stock traded for $31/share. At expiration, the stock
traded for $38/share. What is the traders net profit or loss, per
share? (Type just the number to two decimal places in the response
box, without commas, dollar signs or percent signs. Do not enter
commas but use negative sign if necessary

A call option on Target stock currently has a price of $4, a
strike price of $60, and an expiration date in 30 days. If Mr.
Anderson sells a call option contract, plot the (net) profit (Y
axis) of this call option contract against the stock price (P; X
axis). Show the calculations of key points.

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