# Question

Turn to Figure 2.8 and find the options for Canadian Natural Resources. Suppose you buy a June call option with exercise price $ 24, and the stock price in June is $ 28.

a. Will you exercise your call? What are the profit and rate of return on your position?

b. What, if you had bought the call with exercise price $ 25 and the stock price turns out to be $ 24, would be your revised answers?

c. Suppose you had bought a June put with exercise price $ 24. What would be your answers, if the share price in June is $ 22?

a. Will you exercise your call? What are the profit and rate of return on your position?

b. What, if you had bought the call with exercise price $ 25 and the stock price turns out to be $ 24, would be your revised answers?

c. Suppose you had bought a June put with exercise price $ 24. What would be your answers, if the share price in June is $ 22?

## Answer to relevant Questions

Turn to Figure 2.5 and find the listing for Aecon Group. a. What was the closing price for Aecon? b. How many shares could you buy for $ 5,000? c. What would be your annual dividend income from those shares? d. What must ...a. Which security offers a higher effective annual yield? i. A three-month bill selling at $ 9,764 ii. A six-month bill selling at $ 9,539 b. Calculate the bank discount yield on each bill. You are bearish on BCE stock and decide to sell short 100 shares at the current market price of $ 50 per share. a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin ...Consider these long-term investment data: i. The price of a 10-year $ 100 par-zero coupon inflation-indexed bonds is $ 84.49. ii. A real estate property is expected to yield 2 percent per quarter (nominal) with an SD of ...Draw a diagram of the CML your client faces with the borrowing constraints. Superimpose on it two sets of indifference curves, one for a client who will choose to borrow, and one for a client who will invest in both the ...Post your question

0