Question

Current price quote is $12. Try to form bull spread using call options and calculate the...

Current price quote is $12. Try to form bull spread using call options and calculate the dollar amount net profit/loss of your bull spread when price becomes $12.6. Option Strike Premium Call 1 E1 = $12 c1 = $0.6 Call 2 E2 = $13 c2 = $0.1 Put 1 E1 = $12 p1 = $0.6 Put 2 E2 = $13 p2 = $1.5

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bull call spread strategy: The current stock price of is $78.91, you buy a call option...
Bull call spread strategy: The current stock price of is $78.91, you buy a call option with the expiration of August 21, with the strike price of 72.50$ with ask $11.30, then sell a call for 82.50$ with bid $5.40. You buy a 44 contracts of each call option, with a multiplier of 100. Net Debit: paying $49,720(1,130*44 contracts) and receiving $23,760(540*44)= $25,960 You liquidate the options before expiration on May 20. The stock price on May 20 is 98$....
A call option on the SGD with a strike price of 0.74 USD/SGD and a maturity...
A call option on the SGD with a strike price of 0.74 USD/SGD and a maturity of 6 months has a premium bid price of 0.1 USD, and a 1penny bid-ask spread. If you sell these options today on 10,000 SGD, and at maturity the SGD is quoted at bid price of 0.82 USD/SGD, with a 1 penny bid-ask spread, what is your net profit on this position? Note: pay careful attention to which side of the quote you will...
Gustavo bought 12 call options on the stock of Cartswell Carts. The stock price is currently...
Gustavo bought 12 call options on the stock of Cartswell Carts. The stock price is currently $61.75 per share. The strike price was $65, and the option premium was $2.50. a. Do these options give Gustavo the right to buy or sell shares of the company? How many shares does he have the right to buy/sell? b. Calculate the total amount Gustavo paid for these options. c. Calculate his profi t or loss if the price rises to $75 a...
The prices of European call and put options on a non-dividend-paying stock with 12 months to...
The prices of European call and put options on a non-dividend-paying stock with 12 months to maturity, a strike price of $120, and an expiration date in 12 months are $25 and $5, respectively. The current stock price is $135. What is the implied risk-free rate? Draw a diagram showing the variation of an investor’s profit and loss with the terminal stock price for a portfolio consisting of One share and a short position in one call option Two shares...
Now is July 10. The current spot price of an underlying asset is $12. You buy...
Now is July 10. The current spot price of an underlying asset is $12. You buy five September European put option contracts with the strike price of $13. The option premium per contract is $1.2. The contract size per contract is 10. What is the moneyness of the put options when you purchased the options?
1. 1. You try to price the options on XYZ Corp. The current stock price of...
1. 1. You try to price the options on XYZ Corp. The current stock price of XYZ is $100/share. The risk-free rate is 5%. You project the stock price of XYZ will either be $90 or $120 in a year. Assume you can borrow or lend money at the risk-free rate. Use risk-neutral approach to price the 1-year call option on XYZ Corp with the strike price of $105. (Attention: using a wrong approach will cost you all the credits)...
You establish a straddle on Walmart using September call and put options with a strike price...
You establish a straddle on Walmart using September call and put options with a strike price of $68. The call premium is $5.15 and the put premium is $5.90. a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.) Maximum loss            $ b. What will be your profit or loss if Walmart is selling for $77 in September? (Input the amount as positive value. Round your...
Questions 26-30 are based on the following stock option quote of GEM Corp, whose stock price...
Questions 26-30 are based on the following stock option quote of GEM Corp, whose stock price is $112 today. Prices Call Put Stock$ Strike$ Exp. Vol. Last $ Vol. Last $ 112 110 Aug 35 3.375 23 0.875 112 110 Sept 45 4.625 11 1.500 112 115 Aug 31 1.500 12 4.625 112 115 Sept 34 2.625 10 4.125 PRICES CALL PUT STOCK$ STRIKE $ EXP. VOL. LAST $ VOL. LAST $ 112 110 AUG 35 3.375 23 .875 112...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT