Strike Price Apple's stock Price on the date the options expire (4/28/23) Premium (Bid) (Short): Premium (Ask) (Long): $100.00 $172.50 $64.20 $65.60
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If you have this call option scenario,
With a short call, would you exercise it? Would it be profitable and if so by how much
What about for a long call?
Step by step
Solved in 3 steps with 2 images
- Question 1: In the table below you are given the details of the put and call options on the shares of Fica Limited Expiration Date Exercise Price Call Price (Premium) Put Price (Premium) (Rand) (Rand) (Rand) September 2015 430 41.20 11.05 460 22.50 22.20 490 10.10 39.36 January 2016 430 65.98 27.20 Required 1. Determine the pay-off and profit/loss to an investor who; a) Purchases the September-expiration Fica Ltd.'s call options with an exercise price of R490 if the share pri b) Sells the September-expiration Fica Ltd.'s call options with an exercise price of R490 if the share price at expiration is R400? What if the stock price at expiration is R550? at expiration is R400? What if the share pric expiration is R550?Current stock price for XYZ $50.00 Interestrate 3% Dividend rate 0% Option PUT PUT PUT PUT CALL CALL CALL CALL - Strike Expiration Option Price $30.00 6-months $40.00 6-months $50.00 6-months $50.75 6-months - $50.00 6-months $50.75 6-months $55.00 6-months $60.00 6-months $0.14 $0.77 $2.74 $2.97 $3.48 $2.97 $1.20 $0.15 Implied Vol 40% 32% 22% 21% 22% 21% 19% 15% Delta (AOption/AS) -0.023 -0.123 -0.431 -0.470 XYZ stock is currently trading at $50 per share. We ask our favourite trading desk to price a bunch of 6-month options on XYZ: 4 puts and 4 calls. The table above gives the information 0.569 0.530 0.299 0.065 For each option price we've run the price through the Black-Scholes formula and solved for implied volatility. The tables also gives the deltas: the derivative of each option price with respect to the stock price. As you know this means: Leave the implied volatility, the interest rate, and the dividend unchanged Change the current price of the stock by a small amount up and…Use the given stock table to find the closing price for ABC Technologies (ABC). Div 52-Week Yld Vol Net SM Low Stock SYM Amt PE 100s Close Chg High 76.63 44.30 АВСTch ABC 2.71 4.6 17 5915 58.53 1.16 The closing price was $
- Current stock price for XYZ Interestrate Dividend rate Option PUT PUT PUT PUT CALL CALL CALL CALL $50.00 3% 0% Strike Expiration $30.00 6-months $40.00 6-months $50.00 6-months $50.75 6-months $50.00 6-months $50.75 6-months $55.00 6-months $60.00 6-months Option Price Implied Vol $0.14 $0.77 $2.74 $2.97 $3.48 $2.97 $1.20 $0.15 40% 32% 22% 21% 22% 21% 19% 15% Delta (AOption/AS) -0.023 -0.123 -0.431 -0.470 0.569 0.530 0.299 0.065 XYZ stock is currently trading at $50 per share. We ask our favorite trading desk to price a bunch of 6-month options on XYZ: 4 puts and 4 calls. The table above gives the information. For each option price we've run the price through the Black-Scholes formula and solved for the implied volatility. The table also gives the deltas: the derivative of each option price with respect to the stock price. As you know this means: ■ Leave the implied vol, the interest rate, and the dividend rate unchanged; ■ Change the current price of the stock by a small amount up and…Current stock price for XYZ Interest rate Dividend rate Option PUT PUT PUT PUT CALL CALL CALL CALL Strike $30 $40 $50 $50.75 $50 $50.75 $55 $60 Expiration 6-months 6-months 6-months 6-months 6-months 6-months 6-months 6-months $50 3% 0% Option price Implied Vol $0.14 $0.77 $2.74 $2.97 $3.48 $2.97 $1.20 $0.15 40% 32% 22% 21% 22% 21% 19% 15% Delta (AOption/ AS) -0.023 -0.123 -0.431 -0.470 0.569 0.530 0.299 0.065 a) Recall the general formula (in terms of S(t), r, q, t, T) for the forward price of a stock for delivery date T: [Forward price for delivery date T] = S(t) * exp ((r — q) (T − t)) In this example, is the forward price for delivery in 6 months higher or lower than the current price of $50? b) The put-call parity relationship: [Price of K STRIKE CALL (Expiry T)] - [Price of K Strike PUT (Expiry T)] = [Value of Forward contact with invoice price K (Delivery date T')] Looking at the table. At what strike do the put and the call have the same value? Is this consistent with put-call…SECTION A Instruction: Answer ALL questions in this section in the booklet provided. ORDINARY SHARES Last 52 52 Traded Close Price Closing Bid Closing Volume (non block) Today's High Today's Week High Week Prev Current Price Price Change (JMD) (IMD) Ask Yr Div (IMD) Low Low Yr Div Security (IMD) (IMD) (IMD) (UMD) UMD) (JMD) (JMD) (JMD) 138SL 4.10 3.95 0.00 3.97 3,99 0.00 0.00 6.15 3.85 AMG 1.97 1.97 -0.03 197 2.00 3,318 1.97 1.93 1.97 4.00 0.42 BRG 18.76 18.76 -0.85 18.75 20.00 16,154 19.61 18.75 0.29 24.00 10.60 0.50 MUSIC 1.70 1.70 0.18 1.52 1.75 18,500 1.70 1.70 80.00 0.38 CWI 1.45 1.45 0.00 0.00 0.00 0.00 0.00 1.45 0.80 C 42.00 42.00 2.13 40.10 42.00 5,050 42.00 42.00 45.00 24.00 KREMI 6.00 6.09 0.34 5.76 6.39 10,700 6.10 6.00 7.54 4.50 0.06 CPJ 5.27 5.29 -0.07 5.36 5.40 80,000 5.36 5.27 6.00 3.00 CAR (XD) 9.50 9.45 0.00 9.25 9.50 616,888 9,50 9.20 14.00 8.80 5.98 0.41 DTL 20.50 20.50 0.39 20.50 24,00 5,000 20.50 20.50 23.00 6.00 DCOVE 15.90 15.90 0.10 15.90 17.00 500 15.90 15.90…
- Use the given stock table to find the closing price for ABC Technologies (ABC). 52-Week Div Amt Yld Vol Net High 80.41 Low Stock SYM PE 100s Close Chg 0.99 46.58 ABCTCH АВС 2.92 5.2 17 5915 55.92 The closing price was $ ar ble ces se uni Enter your answer in the answer box.onsider the following Put Option: May 50 trading at $3.15/share May is the expiration 50 is the Strike Price$3.15 is the PremiumIf, at expiration, the stock price is $57.25, the Seller (to Open) would have a TOTAL gain or loss of.....(not per share) if a loss use the '-' signApr 146.50 call - premium = 4.50 Gives the right to buy shares at $146.50 If spot = $147 and the option expires today, what are your profits? A. Negative, don't exercise B. $500 C. $1000 D. -$4000 E. None of the above AC DE
- es XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year-End Price $100 110 $ 4 4 90 95 Year 2018 2019 2020 2021 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns 2018 2019 2020 2021 b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date 4 4 Cash Flow $ Rate of return (300) (208) 110 396 3.15 % 2.33 % b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot…Question No.3 The following is an excerpt from a Jamaica Stock Exchange Trading Report. Use the information from the table to answer the questions that follow:- Volume (non - block) Change Price ($) ($) Securities Prev. Current Close Today's High($) Today's Low ($) Last Closing Bid ($) Closing Ask ($) 52 52 Week Week Yrs Yr Traded High Low Div Div ($) Price($) ($) Barita Ltd 4.95 1.90 0.04 0.09 15,300 5.00 5.00 5.00 6.60 -0.10 4.70 5.10 3.50 0.25 8.70 7.00 2.55 1834 Inv. 0.22 4.500 6.75 6.75 8.30 8.30 0.00 9.40 320,700 7,000 73,386 1,030 10,000 0.13 BIP 7,60 7.30 7.90 7.90 -.0.02 7.37 5.00 2.60 CCFG 10.70 10.70 10.10 10.10 0.00 8.50 9.70 3.70 1.75 SFJ 4.50 4.50 5.20 4.50 -0.01 4.10 4.50 67.00 60.50 CAR 5.80 1.30 85.00 85.00 75.10 75.10 -0.35 70.30 84.10 5.75 2.52 DG 0.20 4.30 4.30 4.30 4.30 0.00 4.26 4.30 117.61 113.90 FCIB 0.06 0.02 113.90 113.90 0.00 115.00 1,385 8,500 34.50 19.25 Jam Prod. 0.25 0.05 45 45 43.60 45.00 0.08 40.90 53.80 64,50 48.00 Pam Jam 1.54 0.05 98 98 85.00 98.00…The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,500. 重寶寶 Exercise Expiration Date July 2018 Price Call Price Put Price $ 53.75 $1,400 1,500 $165.70 106.00 98.00 64.55 1,600 1,400 1,500 1,600 158.05 January 2019 214.00 88.25 157.35 135.25 114.00 192.00 Required: a. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,550. b. Calculate the payoff and the profits for investments in each of the following January 2019 maturity options, assuming that the stock price on the expiration date is $1,350. c. Are the prices of the January 2019 options more or less than those of the corresponding July 2018 options. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the payoff and the profits for investments in each of the following January 2019 maturity options,…