Listed options quotations for ReC Corporation. call ReC vol last 42.63 0.44 42.63 0.88 42.63 40...

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Listed options quotations for ReC Corporation. call ReC vol last 42.63 0.44 42.63 0.88 42.63 40 2.06 42.63 406 42.63 5.25 30 strike exp 40 Feb 35 FEB 709 vol last Apr 3.75 40 Jul 15 13 FEB 3219 4.75 8.25 949 6.83 put 892 8.75 910 2181 4001 6432 1)suppose you want the right to buy 1000 shares of ReC for $40 sometimes between now and July. what would you buy? How much would you have to pay? 2) Suppose you hold on to your contracts until July rolls around and they are just about to expire. What are your gains or losses if ReC is selling for $50 per share? What about $33 per share? Listed options quotations for ReC Corporation. call ReC vol last 42.63 0.44 42.63 0.88 42.63 40 2.06 42.63 406 42.63 5.25 30 strike exp 40 Feb 35 FEB 709 vol last Apr 3.75 40 Jul 15 13 FEB 3219 4.75 8.25 949 6.83 put 892 8.75 910 2181 4001 6432 1)suppose you want the right to buy 1000 shares of ReC for $40 sometimes between now and July. what would you buy? How much would you have to pay? 2) Suppose you hold on to your contracts until July rolls around and they are just about to expire. What are your gains or losses if ReC is selling for $50 per share? What about $33 per share?

Answer rating: 100% (QA)

1 To have the right to buy 1000 shares of ReC for 40 the appropriate option to buy would be the July ... View the full answer