1) The March 56 Call is and the March 58 Put is 2) If the strike...

 

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1) The March 56 Call is and the March 58 Put is 2) If the strike price was $60, what would a reasonable premium look like for a call and put? 3) If the strike price was $50, what would a reasonable premium look like for a call and put? 4) The breakeven point for the March 57 Call is 5) The breakeven point for the March 57 Put is 6) What is the intrinsic value of the March 56 Call? The 56 Put? 7) What is the time value of the March 58 Call? The 58 Put? 8) Suppose you bought the March 56 Call Options on 1,000,000 barrels. If you exercised your options at today's spot price, your profits would be 9) Suppose you bought the March 56 Call Options on 1,000,000 barrels. Your total cost would be 10) Suppose you wrote 100 March 56 Calls at the quoted price. One week later, the spot price is 60 and the holder of the option chooses to exercise it. What are your profits? American Option contracts (1,000 barrels) Premium = $/barrel Strike Price Maturity Calls Puts Spot 57 March 2.05 1.09 March 1.97 2.67 March 1.32 4.22 56 57 58 1) The March 56 Call is and the March 58 Put is 2) If the strike price was $60, what would a reasonable premium look like for a call and put? 3) If the strike price was $50, what would a reasonable premium look like for a call and put? 4) The breakeven point for the March 57 Call is 5) The breakeven point for the March 57 Put is 6) What is the intrinsic value of the March 56 Call? The 56 Put? 7) What is the time value of the March 58 Call? The 58 Put? 8) Suppose you bought the March 56 Call Options on 1,000,000 barrels. If you exercised your options at today's spot price, your profits would be 9) Suppose you bought the March 56 Call Options on 1,000,000 barrels. Your total cost would be 10) Suppose you wrote 100 March 56 Calls at the quoted price. One week later, the spot price is 60 and the holder of the option chooses to exercise it. What are your profits? American Option contracts (1,000 barrels) Premium = $/barrel Strike Price Maturity Calls Puts Spot 57 March 2.05 1.09 March 1.97 2.67 March 1.32 4.22 56 57 58

Answer rating: 100% (QA)

The missing information about the March 56 Call and March 58 Put premium is not provided in the question Please provide the premium values for these options If the strike price was 60 a reasonable pre... View the full answer