The quote information for Air Canada call and put option on Apr 16, 2021 is below: Assume
Fantastic news! We've Found the answer you've been seeking!
Question:
The quote information for Air Canada call and put option on Apr 16, 2021 is below:
Assume the Air Canada stock price on Apr 16, 2021 will be $45, and the size of each contract is 100 shares.
Call | Bid price | Ask price | Open int. | Strike | Put | Bid price | Ask price | Open int. |
16-Apr-21 | 3.95 | 4.2 | 131 | 27 | 16-Apr-21 | 4.75 | 4.95 | 29 |
1. Suppose Jack bought 10 contracts of the Apr 16th call option.
- Describe in detail how Jack does to exercises the calls and makes the payoff.
- What are the payoff and profit for Jack?
- Who will be the call option writer? What are the payoff and profit for the call option writer?
2. Suppose Jane bought 10 contracts of the Apr 16th put option. What are her payoff and profit?
3. If Air Canada issues warrants, what is the effect on its stock price compared to the call option?
Related Book For
Posted Date: