Question: 4) Please use data below to answer the next four questions Exercise price Maturity September July September July September September September Call price 0.13 0.08

 4) Please use data below to answer the next four questions

4) Please use data below to answer the next four questions Exercise price Maturity September July September July September September September Call price 0.13 0.08 Put Price 1.05 72.5 72.5 73 73 1.45 1.75 2.26 3.95 4.88 Option is for Canadian Dollars (CD); Each contract is for CD 50,000. All quotes are in Cents per unit. The number 72 for example under Exercise price is also in cents per unit or it is $0.72. 4) For the buyer of one 76.5 September put, what is the profit or loss at expiration if spot is at $0.72 a) $250 b)- $2440 c) - $2250 d) $190 5) What is the break even point for the 76.5 September put option a) $0.7162 expressed on a per unit basis d)$0.7344 b)s0.8138 c)S0.7665 6) Ifthe spot price of CD is $0.7225, which of the following options is in the money b) 73July call c) 73 September Put d) 72 September Pu a) 72.5 July call 7 Cost of buying One CD put option contract with an exercise price of $0.73 expiring in Septemb a) $1.75 b)$28 c) $730 d)$8750 e) $875

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!