You are long a $85 call on 100 shares of GE with a premium of $6.11/share. When the option expires, GE is trading at $82.64. The premium (paid) collected on this option is $__________. (dollars, rounded to two places after the decimal)

QUESTION 6

The intrinsic value of this option is $_________ (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 7

The profit (loss) on this option is $___________ (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 8

The breakeven price on this option is $_________ (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 9

Questions 9-12 are related and share the same information:

You are short a $100 put on 100 shares of IBM with a premium of $5.41/share. When the option expires IBM is trading at $97.22. The premium (paid) collected on this option is $__________ (dollars, rounded to two places after the decimal)

QUESTION 10

The intrinsic value of this option is $_________. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 11

The profit (loss) on this option is $_______. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 12

The breakeven price on this option is $_______. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 13

Questions 13-14 are related and share the same information:Gold is trading at $1500, but one year Gold contracts are trading at $1600. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $17/ ounce storage and insurance, $400/ounce borrowing fee on gold, and 7.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 600 ounces of Gold. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $______________. (dollars, rounded to two places after the decimal)

QUESTION 14

The futures price at which arbitrage is no longer profitable is $__________. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 15

Questions 15-18 are related and share the same information:

Archer Daniel Midland plans to purchase 40,000 bushels of soybeans in July. In January, when the spot price of soybeans was $9.32 /bushel, ADM hedged the entire planned purchase with September futures contracts 5000bu/c at 934. ADM lifts the hedge in July. The spot price of Soybeans is now $7.42 /bushel and the basis on September futures is now - $0.01. ADM's profit (loss) on its futures position is $_________. (dollars, rounded to two places after the decimal)

QUESTION 16

ADM's revenue (expenditure) on the spot market is $_________. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 17

ADM's net revenue (expenditure) is $_________. (dollars, rounded to two places after the decimal)

(refers to the above problem statement)

QUESTION 18

ADM's effective price per bushel is $_________. (dollars, rounded to four places after the decimal)

(refers to the above problem statement)

Please help me with these finance questions please.

I desperately need help with these questions.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below QUESTION 5 The premium paid collected o... View the full answer