Question: Answer all questions and submit the quiz in groups. Show the steps of calculation clearly. (70 marks) 1. You hold a long position in one

Answer all questions and submit the quiz in
Answer all questions and submit the quiz in groups. Show the steps of calculation clearly. (70 marks) 1. You hold a long position in one ABC 75 call option for a premium of $2. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoft and profit curve. (10 marks) 2. You hold a short position in one ABC 40 call option for a premium of $1.5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoft and profit curve. (10 marks) 3. You hold a long position in one ABC 100 put option for a premium of $5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoff and profit curve. (10 marks) 4. You hold a short position in one ABC 150 put option for a premium of $5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoft and profit curve. (10 marks) 5. You hold a long position in one ABC 50 call warrant with the conversion ratio of 10 and a lot size of 1,000. Assume that you paid $0.5 per warrant to buy a lot and the current price of the stock is $53. Show the profit per lot of warrants. (5 marks) 6. You hold a long position in one ABC 80 put warrant with the conversion ratio of 100 and a lot size of 1,000. Assume that you paid $0.07 per warrant to buy a lot and the current price of the stock is $85. Show the profit per lot of warrants

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