Question: Hello! This is my first time requesting answers and I am a new user, so please let me know if theres anything more I can
Hello! This is my first time requesting answers and I am a new user, so please let me know if theres anything more I can do to help these questions get answered. I need these four multiple choice finance questions answered tonight. Any help I could get would be great, thank you!
1)
| Given the following option quote information: | ||||||
| Calls | Puts | |||||
| Option and NY Close | Expiration | Strike Price | Volume | Last | Volume | Last |
| XYZ | ||||||
| February | 112 | 85 | 7.55 | 40 | 0.60 | |
| March | 112 | 61 | 8.55 | 22 | 1.55 | |
| May | 112 | 22 | 10 | 11 | 2.85 | |
| August | 112 | 3 | 12.5 | 3 | 4.70 |
The current stock price is $114.00 and the stock price on the expiration date is $120.00. How much is your options investment worth? (ignore commissions)
| $8,000.00 |
| $6,000.00 |
| $80.00 |
Given the following parameters use risk-neutral valuation to value a call option.
| Current stock price: | $85.00 |
| Stock will increase or decrease next year by: | 15 pct. |
| Call Option strike price: | $82.00 |
| Time to expiration: | 1 year |
| Risk free rate: | 8 pct. |
| Value of call: $14.58 |
| Value of call: $11.18 |
| Value of call: $9.07 |
| 3.91 years |
| 3.83 years |
| 4.30 years |
| c = 3.16, p = 1.06 |
| c = 6.33, p = 0.43 |
| c = 4.00, p = 1.90 |
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