Need answer in 1 hour please For this case study, we assume that Nikkei Index is a tradable securities just like usual stock. No fee ortax are considered in this case.On October 1, you purchased Nikkei Index t a price of 31,100 JPY ("Long Position").On October 1,Nikkei Index "Puť" Options are traded with various strike prices as follows:Underlying:Price of Put OptionCall or Put :305210120PriceMaturity :American or European :NikkeiIndex onDec.831,30031,20031,10031,00030,900Nikkei IndexPutDec. 8EuropeanMoney paidto purchasePut OptionStrike Price31,100(Sample Question 1) You buy the Put Option of strike price 31,100. What is your total payoff (LongNikkei and Put Option) at maturity if the stock price is shown below.Initial moneypaid to holdLong PositionStrike Price31,40031,30031,20031,10031,00030,900503015Payoff from Put | Payoff fromOption (ifLong Positionexercised)(if no exercise)Total Payoff

Here,Long Position Price is 31,100Put Option Price at 31,100 is 50

For this case study, we assume that Nikkei Index is a tradable securities just like usual stock. No fee or tax are considered in this case. On October 1, you purchased Nikkei Index at a price of 31,100 JPY ("Long Position"). On October 1, Nikkei Index "Put" Options are traded with various strike prices as follows: Price of Put Option 305 210 120 50 30 15 Price Underlying: Call or Put : Maturity : American or European : 31,300 31,200 31,100 31,000 30,900 Nikkei Index on Dec.8 Nikkei Index Put Dec. 8 European 31,100 (Sample Question 1) You buy the Put Option of strike price 31,100. What is your total payoff (Long Nikkei and Put Option) at maturity if the stock price is shown below. Money paid to purchase Put Option Strike Price Initial money paid to hold Long Position Strike Price 31,400 31,300 31,200 31,100 31,000 30,900 Payoff from Put Payoff from Option (if Long Position exercised) (if no exercise) Total Payoff

For this case study, we assume that Nikkei Index is a tradable securities just like usual stock. No fee or tax are considered in this case. On October 1, you purchased Nikkei Index at a price of 31,100 JPY ("Long Position"). On October 1, Nikkei Index "Put" Options are traded with various strike prices as follows: Price of Put Option 305 210 120 50 30 15 Price Underlying: Call or Put : Maturity : American or European : 31,300 31,200 31,100 31,000 30,900 Nikkei Index on Dec.8 Nikkei Index Put Dec. 8 European 31,100 (Sample Question 1) You buy the Put Option of strike price 31,100. What is your total payoff (Long Nikkei and Put Option) at maturity if the stock price is shown below. Money paid to purchase Put Option Strike Price Initial money paid to hold Long Position Strike Price 31,400 31,300 31,200 31,100 31,000 30,900 Payoff from Put Payoff from Option (if Long Position exercised) (if no exercise) Total Payoff

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter8: Financial Options And Applications In Corporate Finance

Section: Chapter Questions

Problem 5MC: In 1973, Fischer Black and Myron Scholes developed the Black-Scholes option pricing model (OPM). (1)...

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