Question: answer question 15 and 16 Answer questions 11216 Use the below information Apple Inc. is currently racing at $160. The table below gives some information

answer question 15 and 16
Answer questions 11216 Use the below information Apple Inc. is currently racing at $160. The table below gives some information on some of the options available on Apple Type | Expiration 30 dan 30 de Price Premium 525 513 =2 =3 -4 60 Strike Price sis $ 5160 $150 $160 $150 S110 $150 5110 30 CA Phat Pest Par Par 1 $30 ISSN SES -6 - ES 30 60 dan 51.75 Hin 30 days the price of Apple Inc. is $150. what will be the payoff of option 1? O $2.0 $0 $ 0-32.5 O $10 QUESTION 12 Win 30 days the price of Apple Inc is $180, what will be the profit of option 45? $10 5725 3-225 0510 QUESTION 13 Suppose Apple Inc. will have an camings announcement in 50 days. You speculate the outcome of the announcement will be either very good or very bad. To profit from your speculation you form a straddle strategy by buying options #3 and 7. If your speculation turns out to be correct and 10 days after the comings annoucement Apple Inc. trades at $180, Both options will be at the money 3 will be in the money and #7 will be out of money Onwil be in the money and Mawl be out of money 13 will be at the money and #7 will be out of money QUESTION 14 In the stadde staregy (previous question, how much you could potentially lose? O 30 $150 O $110 3825 QUESTION 15 2 Suppose that you already own Apple Ine, and you want to protect yourself against a decline in the stock price in order to do that you decide to buy a put option that expires in 30 days. Therefore, you have 2 choices options and option. Which one provides a better protection? Not enough information to decide They provide the same protection a O. QUESTION 16 Suppose that you are 100% sure that the stock price will be $170 in 30 days. If you have 31000 to invest right now. which option would you pick
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
