Calls & Puts Calls Expand collapse All Bid/ Bid Size 0.88 758 1.20 110 0.42 260...

 

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Calls & Puts Calls Expand collapse All Bid/ Bid Size 0.88 758 1.20 110 0.42 260 0.07 546 0.01 360 Following are the option prices for calls and puts for Ford (F) with July 21, 2017 expiration date. Suppose you believe that Ford stock will stay relatively flat. You also want to sell options to pick up additional income and you currently have 350 shares of Ford and $50 in cash. Based on your belief on Ford's future stock price movement, what type of options would you trade and why? What is the relevant option price for you if you are interested in a strike price of $12? And what is the total premium paid and/or received? 0.00 0 Ask Ask Size 3.35 54 1.21 110 0.43 130 0.08 324 0.02 165 0.01 19 In the Money Near the Money Volume/ Open Int 0 401 186 1,259 1,208 9,100 2,714 9,555 173 5,893 55 568 Change/ Change 0.00 0.00% 0.15 15.00% 0.11 35.48% 0.01 16.67% 0.01 100.00% 0.00 Puts Out of the Money Jul 21, 2017 0 onys un expert Strike Price Expiration Pos. 0.00% 9.00 Jul 21,2017 10.00 Jul 21, 2017 11.00 Jul 21,2017 11.115 Underlying Last Price 12.00 Jul 21, 2017 13.00 Jul 21,2017 14.00 Jul 21,2017 Pos. Bid/ Bid Size 0.02 717 0.08 225 0.33 250 1.00 70 1.82 589 2.79 614 Ask/ Ask Size 0.03 411 0.09 492 0.34 110 1.03 70 2.23 3 4.25 13 Volume/ Open Int 11 613 161 5,097 844 21,907 173 11,786 5 629 D 319 Change! % Change 0.00 0.00% 0.04 -33.33% -0.13 -28.26% 0.16 -13.33% 0.18 -7.96% 0.00 0.00% Calls & Puts Calls Expand collapse All Bid/ Bid Size 0.88 758 1.20 110 0.42 260 0.07 546 0.01 360 Following are the option prices for calls and puts for Ford (F) with July 21, 2017 expiration date. Suppose you believe that Ford stock will stay relatively flat. You also want to sell options to pick up additional income and you currently have 350 shares of Ford and $50 in cash. Based on your belief on Ford's future stock price movement, what type of options would you trade and why? What is the relevant option price for you if you are interested in a strike price of $12? And what is the total premium paid and/or received? 0.00 0 Ask Ask Size 3.35 54 1.21 110 0.43 130 0.08 324 0.02 165 0.01 19 In the Money Near the Money Volume/ Open Int 0 401 186 1,259 1,208 9,100 2,714 9,555 173 5,893 55 568 Change/ Change 0.00 0.00% 0.15 15.00% 0.11 35.48% 0.01 16.67% 0.01 100.00% 0.00 Puts Out of the Money Jul 21, 2017 0 onys un expert Strike Price Expiration Pos. 0.00% 9.00 Jul 21,2017 10.00 Jul 21, 2017 11.00 Jul 21,2017 11.115 Underlying Last Price 12.00 Jul 21, 2017 13.00 Jul 21,2017 14.00 Jul 21,2017 Pos. Bid/ Bid Size 0.02 717 0.08 225 0.33 250 1.00 70 1.82 589 2.79 614 Ask/ Ask Size 0.03 411 0.09 492 0.34 110 1.03 70 2.23 3 4.25 13 Volume/ Open Int 11 613 161 5,097 844 21,907 173 11,786 5 629 D 319 Change! % Change 0.00 0.00% 0.04 -33.33% -0.13 -28.26% 0.16 -13.33% 0.18 -7.96% 0.00 0.00%

Answer rating: 100% (QA)

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