Name at least 4 variables that affect the price behavior of listed options, and briefly explain how each affects prices. How important are fundamental (intrinsic) value and time value to in-the-money options? To out-of-the-money options?
Answer to relevant QuestionsUsing the stock option quotations in Figure 14.4 (on page 556), find the option premium, the time value, and the stock index breakeven point for the following puts and calls. a. The December put with a $103 strike price b. ...Angelo Martino just purchased 500 shares of AT&E at $61.50, and he has decided to write covered calls against these stocks. Accordingly, he sells five AT&E calls at their current market price of $5.75. The calls have 3 ...You believe that oil prices will be rising more than expected and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their operations. You also believe ...Describe a currency future and contrast it with an interest-rate future. What is a stock-index future, and how can it be used by investors? Several approaches to investing in commodities and explain the investment objectives of each.
Post your question