Assume a 40 July put option is purchased for 6.50 on a stock selling at $35 per share. If the stock ends up on expiration at 38.75, what will be the value of the put option?
Answer to relevant QuestionsLook at the option quotes in Table 14–2 on page 368. a. What is the closing price of the common stock of SINGLE Systems? b. What is the highest strike price listed? c. What is the price of a December 20 call option? d. ...Assume on May 1 you are considering a stock with three different expiration dates for the 60 call options. The percentage of the speculative premium for each date is as follows: May....... 2.8% August....... ...Indicate some factors that might influence the price of wheat in the commodities market. The Health Food Corporation anticipates the need to purchase 80,000 bushels of soybeans in six months to use in their products. The current cash price for soybeans is $5.50 a bushel. A six-month futures contract for soybeans ...Why is it unrealistic for a portfolio manager to sell a large portion of his portfolio if he thinks the market is about to decline?
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