AstraZeneca plc (AZN) stock was trading at $45 on August 3, 20X1 and the following options...
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AstraZeneca plc (AZN) stock was trading at $45 on August 3, 20X1 and the following options prices are available: Keep in mind that 1 option contract is on 100 shares of the underlying stock. SEPT 40 put - $1.50 SEPT 50 put - $6 SEPT 40 call - $6 SEPT 50 call - $1 A) What would you do to take a bull spread position using put options? B) What is the net premium or cost of such a spread? Indicate whether you have to pay or to receive net premium. C) What is the maximum gain possible on expiration? D) What is the maximum loss possible on expiration? E) What is the break-even point of AZN on expiration? Sept 40 put $1.50 Sept 50 put $6 Sept 40 call $6 Sept 50 call $1 Interest rate 4% Options in a long bull put spread? Net Premium Received? Maximum gain? Maximum loss? Break-even? per stock per stock per stock per stock AstraZeneca plc (AZN) stock was trading at $45 on August 3, 20X1 and the following options prices are available: Keep in mind that 1 option contract is on 100 shares of the underlying stock. SEPT 40 put - $1.50 SEPT 50 put - $6 SEPT 40 call - $6 SEPT 50 call - $1 A) What would you do to take a bull spread position using put options? B) What is the net premium or cost of such a spread? Indicate whether you have to pay or to receive net premium. C) What is the maximum gain possible on expiration? D) What is the maximum loss possible on expiration? E) What is the break-even point of AZN on expiration? Sept 40 put $1.50 Sept 50 put $6 Sept 40 call $6 Sept 50 call $1 Interest rate 4% Options in a long bull put spread? Net Premium Received? Maximum gain? Maximum loss? Break-even? per stock per stock per stock per stock
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A To take a bull spread position using put options we would buy a lower strike put option and sell a ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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