Question

Which one of the following options is out-of-the-money?

call with a $20 strike and a stock price of $21 |
||

put with a $35 strike and a stock price of $33 |
||

call with a $45 strike and stock price of $46 |
||

put with a $75 strike and a stock price of $70 |
||

call with a $50 strike and a stock price of $49 |

Answer #1

**Answer: call with a $50 strike and a stock price of
$49**

A call option is in the money when Stock price is greater than the Strike price. In option 1 and 3, stock price > strike price and hence they are in the money. In option 5, stock price < strike price and hence that is out of money.

A put option is in the money when stock price is less than the Strike price. In option 2 and 4, stock price is less than stock price and hence both are in the money options.

Which one of the following options is in-the-money?
call with a $45 strike and an underlying stock price of $42
put with a $35 strike and an underlying stock price of $36
call with a $15 strike and an underlying stock price of $15
put with a $45 strike and an underlying stock price of $42
call with a $30 strike and an underlying stock price of $29

b. 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 the money?
What is the profit (loss) at expiration given different prices
of the stock ($30, $35, $40, $40, $45, $50, $55, and $60) if the
investor buys the call with $50 strike...

For the following sets of prices for stocks and the
corresponding exercise prices under their options, state whether
the option is “in the money,” “at the money,” or “out of the
money.”
Stock Price: $80; Call Option Strike Price: $100
____________________
Stock Price: $50; Put Option Strike Price: $75
_____________________
Stock Price: $30; Call Option Strike Price: $30
_____________________
Stock Price: $20; Put Option Strike Price: $15
_____________________
Stock Price: $90; Call Option Strike Price: $70
_____________________

5.1. A one-year call option on a stock with a strike price of
$45 costs $3; a one-year put option on the stock with a strike
price of $45 costs $5. Suppose that a trader buys five call options
and three put option. What is the breakeven stock price above which
the trader makes a profit?

Suppose you are given the following prices for the options on
ABC stock:
Strike (in
$)
call
put
15.0
1.6
2.0
17.5
1.2
2.5
20.0
0.9
3.2
Suppose you take the following position: long one call with
strike 15.0, short two calls with strike 17.5, and long one call
with strike 20.0. Please draw the payoff at maturity.
What would be the total gain (loss) on the above position if
the stock price at maturity turned out to be...

Suppose you are given the following prices for the options on
ABC stock:
Strike (in
$)
call
put
15.0
1.6
2.0
17.5
1.2
2.5
20.0
0.9
3.2
Suppose you take the following position: long one call with
strike 15.0, short two calls with strike 17.5, and long one call
with strike 20.0. Please draw the payoff at maturity.
What would be the total gain (loss) on the above position if
the stock price at maturity turned out to be...

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

Which one of the following is true for in the money, out of the
money, and at the money option contracts?
a. Out of the money options are
worthless.
b. Given everything else being the
same (the underlying stock, expiration date), in the money put
options have higher strike prices than at the money put
options.
c. At the money options will always
remain at the money before expiration date.
d. None of the above.

A trader is purchasing three European call options with a strike
price of $45 and two put options on the same stock with a strike
price of $50. Both options have the same maturity date. The price
of the call option is $5, while the price of the put option is $4.
Create a table and a diagram illustrating the profit at termination
from these positions for various levels in the price of the
underlying. On one chart draw a...

based on the following options data for XYZ Corporation:
------Call------ or------Put------
Market price
Strike Exp.
38.625 25 Dec.
38.625
30
Nov.
38.625
30
Dec.
38.625
35
Nov.
38.625
35
Dec.
38.625
35
Mar.
38.625
40
Nov.
1. Which of the above
calls is not “in-the-money?”
2. Of the various
combinations shown above, how many combinations of put contracts
are currently trading “out-of-the-money?”

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