Consider a long call option position with strike K-80 and expiry T. What is the payoff...
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Consider a long call option position with strike K-80 and expiry T. What is the payoff when the option is exercised at expiry T payoff if ST is 80? what is the payoff if ST is 120? QUESTION 2 "If you are a long put option with strike K-80 and with expiry T, the current stock price is $100. What is the option's intrinsic value? (assume 0 rates or dividends)" QUESTION 3 "If you want to replicate the forward contract with calls and puts at delivery price K=80 and expiry T, how will you do it? ""long" or "short" a long forward. ""long" or "short" a call and ""long" or "short" integers) if the security price at expiry (S_T) is 100? QUESTION 5 a put to create a short forward position." QUESTION 6 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K-80) is quoted at $101? "buy" or "sell" "buy" or "sell the forward at K=0 for This allows you to net QUESTION 4 "Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K-80 and same T) are quoted at $26 and $5, respectively. There is an arbitrage and you can lock in an arbitrage profit by "buy"" or "sell"" a call, "buy" or "sell™" a put, and ""long"" or ""short" the forward all at K-80 and the same expiry T. How much will be the arbitrage profit in US dollar? (in a call and ""long" or "short" dollar today with no future liability." "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K-80) is quoted at $19? Answer: "buy"" or "sell" "buy" or "sell" the forward at K=80 for . This allows you to net the call at K-100 for the call at K-80 for T dollar today and with non-negative future payoffs." what is the a put to create and and Consider a long call option position with strike K-80 and expiry T. What is the payoff when the option is exercised at expiry T payoff if ST is 80? what is the payoff if ST is 120? QUESTION 2 "If you are a long put option with strike K-80 and with expiry T, the current stock price is $100. What is the option's intrinsic value? (assume 0 rates or dividends)" QUESTION 3 "If you want to replicate the forward contract with calls and puts at delivery price K=80 and expiry T, how will you do it? ""long" or "short" a long forward. ""long" or "short" a call and ""long" or "short" integers) if the security price at expiry (S_T) is 100? QUESTION 5 a put to create a short forward position." QUESTION 6 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K-80) is quoted at $101? "buy" or "sell" "buy" or "sell the forward at K=0 for This allows you to net QUESTION 4 "Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K-80 and same T) are quoted at $26 and $5, respectively. There is an arbitrage and you can lock in an arbitrage profit by "buy"" or "sell"" a call, "buy" or "sell™" a put, and ""long"" or ""short" the forward all at K-80 and the same expiry T. How much will be the arbitrage profit in US dollar? (in a call and ""long" or "short" dollar today with no future liability." "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K-80) is quoted at $19? Answer: "buy"" or "sell" "buy" or "sell" the forward at K=80 for . This allows you to net the call at K-100 for the call at K-80 for T dollar today and with non-negative future payoffs." what is the a put to create and and
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Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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