Look at the Opti-tech call option prices in Table. Call prices increase as the strike price decreases, holding the expiration month constant. The strike prices decrease in increments of $2.50. Do the call option prices increase in constant increments? That is, does the call price increase by the same amount as the strike price drops from $35 to $32.50 to $30 and so on?
Answer to relevant QuestionsIf the underlying stock price is $25, indicate whether each of the options below is in the money, at the money, or out of the money. Refer to the data in the following table. Strike Price Put Price $30 .......... $1.00 $35 .......... $3.50 $40 .......... $6.50 Suppose an investor purchases 1 put with X = $30 and one put with X = $40 and ...A convertible bond has a par value of $1,000 and a conversion ratio of 20. If the underlying stock currently sells for $40 and the bond sells at par, what is the conversion premium? The conversion value? What are the responsibilities and typical payoff for a general partner in a venture capital limited partnership? The venture capital fund Techno Fund II made a $4 million investment in Optical Fibers Corporation five years ago and, in return, received 1 million shares representing 20% of Optical Fibers’ equity. Optical Fibers is now ...
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