Question

You write one IBM July 100 put contract for a premium of $9. You hold the...

You write one IBM July 100 put contract for a premium of $9. You hold the option until the expiration date when IBM stock is at $116 per share. How much profit or loss you will realize on the investment? Remember each contract has 100 shares?

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
You write one IBM July 100 put contract for a premium of $8. You hold the...
You write one IBM July 100 put contract for a premium of $8. You hold the option until the expiration date when IBM stock is at $109 per share. How much profit or loss you will realize on the investment? Remember each contract has 100 shares.
You buy one IBM July 90 call contract for a premium of $4 each share and...
You buy one IBM July 90 call contract for a premium of $4 each share and one put contract for a premium of $2 each share. You hold the position until the expiration date when IBM stock sells for $98 per share. What is your total profit or loss? Remember each contract has 100 shares? I got 200, is this correct?
You write one MBI July 120 call contract (equaling 100 shares) for a premium of $4....
You write one MBI July 120 call contract (equaling 100 shares) for a premium of $4. You hold the option until the expiration date, when MBI stock sells for $121 per share. You will realize a ________ on the investment. [A contract consists of 100 shares. Do not add $ in the answer. Use negative sign to indicate loss. ]
You purchase one MBI July 126 call contract (equaling 100 shares) for a premium of $15....
You purchase one MBI July 126 call contract (equaling 100 shares) for a premium of $15. You hold the option until the expiration date, when MBI stock sells for $135 per share. You will realize a ______ on the investment.
You purchase one ABC Inc. July 125 call contract for a premium of $5. You hold...
You purchase one ABC Inc. July 125 call contract for a premium of $5. You hold the option until the expiration date, when ABC Inc. stock sells for $123 per share. How much will you realize on the investment?
You purchase one SDB $125 strike price call contract (equaling 100 shares) for a premium of...
You purchase one SDB $125 strike price call contract (equaling 100 shares) for a premium of $5. You hold the option until the expiration date, when SDB stock sells for $123 per share. What will be your payoff at expiry? What will be your profit/loss? You write one SDB $120 strike price put contract (equaling 100 shares) for a premium of $4. You hold the option until the expiration date, when SDB stock sells for $121 per share. What will...
ou purchase one crude oil July 40 put contract for a premium of $4.70 (per barrel)....
ou purchase one crude oil July 40 put contract for a premium of $4.70 (per barrel). You hold the option until the expiration date when crude oil stock sells for $42.40 per barrel. You will realize a _____ on the investment. (Hint: Assume that each put covers 1,000 barrels) a. $2,400 gain b. $2,400 loss c. $4,700 loss d. $2,300 gain e. $2,300 loss
22. You have written one July 123 call contract on XRI stock for a premium of...
22. You have written one July 123 call contract on XRI stock for a premium of $9. You hold the option until the expiration date, when XIR stock sells for $127 per share. You will realize a ______ on the investment. Multiple Choice A $500 profit B $1,300 loss C $400 loss D $400 profit 23. The spot price for S&P100 is $1,700. The dividend yield on the S&P 100 is 4.8%. The risk-free interest rate is 5.8%. The futures...
2. Suppose you purchase a put option to sell IBM common stock at $100 per share...
2. Suppose you purchase a put option to sell IBM common stock at $100 per share in September. The current price of IBM is $85 and the option premium is $10. a. What is the intrinsic value of this option? As the expiration date on the option approaches, what will happen to the size of the option premium? b. What would be in intrinsic value if this was a call option?
Consider the following options portfolio. You write an August expiration call option on IBM with exercise...
Consider the following options portfolio. You write an August expiration call option on IBM with exercise price $150. You write an August IBM put option with exercise price $145. a. Graph the payoff of this portfolio at option expiration as a function of IBM’s stock price at that time. b. What will be the profit/loss on this position if IBM is selling at $153 on the option expiration date? What if IBM is selling at $160? Use the data in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT