Question

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

Answer #1

This is known as Moneyness of an option . This relates to current stock price w.r.t strike price

**Where S is the Stock Price and E is the Strike
Price**

1. The Correct answer is **Out of the money**

Strike Price = $35

Stock Price = $30

As S < E the call is Out of the money.

2. The Correct answer is **In the
money**

Strike Price = $35

Stock Price = $30

As S < E the put is In of the money.

Question 1:
A put option on DEF stock with a strike price of $10 expires
today. The current price of TYU stock is $13.14. The put's
intrinsic value is ___ and it is ____.
A) $3.14, out of the money
B) $3.14, in the money
C) $3.14, at the money
D) $0, out of the money
E) $0, in the money
Question 2:
A call option on GHI stock with a strike price of $17.50
expires today. The current price...

6. A call option with a strike price of $30 expires in six
months. The current price of the stock is $40. What is the
intrinsic value of the option? Should the option have a time
premium? Is the option in-the-money or out-of-the-money?
I need help with this questions.

A put option with a strike price of $90 sells for $6.3. The
option expires in four months, and the current stock price is
$92.3. If the risk-free interest rate is 4.3 percent, what is the
price of a call option with the same strike price? (Round your
answer to 2 decimal places. Omit the "$" sign in your response.)
Price of a call option $

A one-year call option has a strike price of 60, expires in 6
months, and has a price of $2.5. If the risk-free rate is 7
percent, and the current stock price is $55, what should the
corresponding put be worth?
a. $5.00
b. $7.54
c. $7.08
d. $5.50

5.7. The price of a European call that expires in six months and
has a strike price of $30 is $2. The underlying stock price is $29,
and a dividend of $0.50 is expected in two months and again in five
months. Risk-free interest rates (all maturities) are 10%. What is
the price of a European put option that expires in six months and
has a strike price of $30?

1) When a share of a company's stock is selling for $55.00, a
call option on the stock with a strike price of $56.00 is said to
be:
A) In the Money
B) Out of the Money
C) Carried at basis
D) An American option
2) When a share of a company's stock is selling for $55.00, a
put option on the stock with a strike price of $56.00 is said to
be:
A) In the money
B) Out of...

The price of a European call on a stock that expires in one year
and has a strike of $60 is $6. The price of a European put option
on the same stock that also expires in one year and has the same
strike of $60 is $4. The stock does not pay any dividend and the
one- year risk-free rate of interest is 5%. Derive the stock price
today. Show your work.

The price of a European call on a stock that expires in one year
and has a strike of $60 is $6. The price of a European put option
on the same stock that also expires in one year and has the same
strike of $60 is $4. The stock does not pay any dividend and the
oneyear risk-free rate of interest is 5%. Derive the stock price
today. Show your work.

The price of a European call that expires in six months and has
a strike price of $28 is $2. The underlying stock price is $28, and
a dividend of $1 is expected in 4 months. The term structure is
flat, with all risk-free interest rates being 6%. If the price of a
European put option with the same maturity and strike price is $3,
what will be the arbitrage profit at the maturity?

Joe Brown purchased a call
option on Cisco stock with a strike price of $40 for a
premium of $2 per share.
1) Before the option expires, Cisco stock price is $44. Will Joe
strike or not? What would be his profit/loss? What is the return
rate on his investment on the option trading
(ignore the money used in purchasing stocks)? Is this not strike?
since X>S, and call option
2) Assume instead, the price of Cisco stock is $39....

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