Question

The cost of a call option on HSB stock with a strike price of $45 is...

The cost of a call option on HSB stock with a strike price of $45 is $1.58. The option has 4 months until expiration. You purchase 9 contracts. One the expiration date the stock was valued at $46.87 a share. What is your profit or loss on the option contracts?.

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 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...
A stock trades for ​$45 per share. A call option on that stock has a strike...
A stock trades for ​$45 per share. A call option on that stock has a strike price of ​$54 and an expiration date six months in the future. The volatility of the​ stock's returns is 42​%, and the​ risk-free rate is 44​%. What is the Black and Scholes value of this​ option?
The price of a stock is $61 and a call option with a strike price of...
The price of a stock is $61 and a call option with a strike price of $60 sells for $5 (i.e., the option premium is $5.). *SHOW WORK* (a) What is the option’s intrinsic value? (b) What is the option’s time premium? (c) You purchased the call for $5. If, at the expiration of the call, the price of the stock is $66, what is the profit (or loss) from buying the call? (d) You purchased the call for $5....
CoStar Group stock price is $590 and the premium for September CoStar stock call option with...
CoStar Group stock price is $590 and the premium for September CoStar stock call option with strike price X=$550 is $45.30. You just wrote the call option for C=$45.30. 1) For the option premium, how much are the intrinsic value and time value? (4 points)    2) What would be your profit / loss if the stock price of Google is $525 on the expiration date? (3 points) 3) What would be your profit / loss if the stock price...
Suppose you sell a 45-strike call option at the price of $2.7804, the current stock price...
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...
13.       An investor owns a call option with a strike price of $45, the premium...
13.       An investor owns a call option with a strike price of $45, the premium paid was $4. The share price on the option expiration date is $42, which of the below statements is correct? a.   The option should be allowed to lapse b. The loss on the option is $7 c. The intrinsic value of the option is -$3 d. The profit on the option is $7 14.       In making a decision on how to act, the...
Intel stock price is $21 and Intel stock put option with a strike price X=$25 and...
Intel stock price is $21 and Intel stock put option with a strike price X=$25 and August expiration has a premium P=$5.5 as of right now. You just bought the put option at P=$5.5 and will hold it till the expiration date. 1) For the option premium, how much are the intrinsic value and time value? (4 points) 2) What would be your profit / loss if the stock price of Intel is $30 on the expiration date? (3 points)...
A call option on Target stock currently has a price of $4, a strike price of...
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.
A stock trades for $46 per share. A call option on that stock has a strike...
A stock trades for $46 per share. A call option on that stock has a strike price of $53 and an expiration date twelve months in the future. The volatility of the stock's returns is 38%, and the risk-free rate is 4%. What is the Black and Scholes value of this option? The answer is $5.08. Please show your work in Excel
The current price of Stock A is $305/share. You believe that the price will change in...
The current price of Stock A is $305/share. You believe that the price will change in the near future, but your are not sure in which direction. To make a profit from the price change, you purchase ONE call option contract (each contract has 100 calls) and TWO put option contracts (each contract has 100 puts) at the same time. The call option and the put option have the same expiration date. The strike price of the call option is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT