SPG is currently trading at $125/share. You sold 10 PUT-option contracts on SPG with a strike price

Fantastic news! We've Found the answer you've been seeking!

Question:

SPG is currently trading at $125/share. You sold 10 PUT-option contracts on SPG with a strike price of $115 for $8 each:

a. What will be your total $ and % gain/loss if SPG price is $135 at the expiration date?

b. What will be your total $ and % gain/loss if SPG price is $120 at the expiration date?

c. What will be your total $ and % gain/loss if SPG price is $105 at the expiration date?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

See More Books

Posted Date: Jun 09, 2023 03:22 AM

See More Questions

Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
1. You own a call option with a strike price of $27.50.What is your payoff on this option contract if the underlying stockis selling for $31.20 on the option expiration date? The payoff amount is the...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Suppose we want both the sensitivity and specificity to be at least 70%. Use the ROC curve to identify the possible value(s) to use as the cutoff for identifying people with dementia, based on these...
Calculate the irreversibility for the process described, assuming that the heat transfer is with the surroundings at 61 F.
In Problem 4.26 you were asked to draw the preferred conformation of menthol on the basis of the information that menthol is the most stable stereoisomer of 2-isopropyl-5-methylcyclohexanol. We can...
What ethical standards paralegals must follow?
Suppose that five normal populations have common variance 2 = 100 and means 1 = 175, 2 = 190, 3 = 160, 4 =200, and 5 = 215. How many observations per population must be taken so that the probability...
How do subcultures emerge within large organizations, and what are the implications for organizational cohesion, communication patterns, and strategic alignment ?
This project will test your understanding of the Sage 50 Accounting application and your ability to apply the features of this application. You will be using many of the skills that you have acquired...
The adjusted trial balance of Belmore Ltd as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. Required: a). Prepare Belmore Ltd's Statement of Changes in Equity for the year...
Debt Ratio for 2013: Total Liabilities = $50 (Accounts Payable) + $0 (Bonds Payable) = $50 Total Assets = $146 Debt Ratio = Total Liabilities / Total Assets = $50 / $146 = 0.342 or 34.2% e) Debt...
The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets Cash $ 87,500 $ 44,000 Accounts receivable,...
2. Solve the initial value problem y" 5y' + 6y = ex x, y(0) = 0, y'(0) = 0.
Suppose the revenue (in dollars) from the sale of x units of a product is given by R(x) 33x + 45x 2x+2 Find the marginal revenue when 26 units are sold. Interpret your result.
Two cars start moving from the same point. one travels south at 20 mi/h and the other travels west at 70 mi/h. At what rate is the distance between the cars increasing 2 hours later?
Explain corporate core values in corporate code of ethics 1. Trustworthiness 2. Respect 3. Responsibility 4. Fairness 5. Caring 6. Citizenship
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2012. The truck is not considered a passenger automobile for purposes of the listed property...
Tom has a successful business with $100,000 of income in 2012. He purchases one new asset in 2012, a new machine which is 7-year MACRS property and costs $25,000. If you are Tom's tax advisor, how...
Laura is a single taxpayer living in New Jersey with adjusted gross income for the 2012 tax year of $35,550. Laura's employer withheld $3,300 in state income tax from her salary. In April of 2012,...
The duties of a nozzle and a diffuser are (a) Opposite to each other (b) Identical to each other (c) Not comparable at all (d) None of these.
Nozzles and diffusers are widely used in (a) Heat exchangers (b) Refrigeration systems (c) Rockets and other space vehicles (d) None of these.
1 ton of refrigeration is equivalent to (a) $3.517 \mathrm{~kW}$ (b) $4.202 \mathrm{~kW}$ (c) $250 \mathrm{kcal} / \mathrm{min}$ (d) $50000 \mathrm{kcal} / \mathrm{min}$.

SPG is currently trading at $125/share. You sold 10 PUT-option contracts on SPG with a strike price

Question:

Expert Answer:

ANSW... View the full answer

Income Tax Fundamentals 2013

Students also viewed these finance questions