I + 1. 135 plus The following table provided CALL and PUT option for Apple Inc. (AAP) toch de trading US$12103-5093,-0.766) March 12, 2021 OPM EST one coming the the options to expire on April 16, 2021, it expire 35 days. One option is 100 652 CALE Option Price Strike Last Price Bid Open Implied Volatility 85 3525 36.2 36.35 -13 1 919 31.25 31.25 31.4 -103 199 10 95 26:15 26:35 2635 35 01 100 214 21 55 217 120 5.59 535 5.7 061 14.763 125 3.35 135 14 72.91 435% 150 021 0.29 0.03 96 MUT Strike Lattice B Change | V Opel Implied Volley 3 0.11 0.16 SE 9 90 0.34 0.23 0.25 -7.69% 16 5.863 95 0.37 0.36 . 13 5.651 100 0.52 0.54 .01 - 13.711 110 15 15 1,753 17.60 120 4.55 45 455 17 29. 125 725 72 73 SO 130 10.95 10.7 1095 140 19.97 19.45 196 145 5.09 0.09 36.23 150 39.25 361 S MAPL121.03-093-0.26 Anel-Nasda Suppose you purchased the 125 CALL plin contract witten by you What does the time you A what cost per te per contract of the in March 127 What the time per | What happen if the price of Apple lec 150 persones and you decide to your Will you make a profit or whom the price is $15 IV Draw a dignam to be the potem of profes perfor Suppose yon parche Apple Inc. och for 5130 and a PUT with 50 per At the time you will call for 55.9 w pie What is the maximumotor for Draw the profit and loding for the fact teckenstein Draw the payal deg for this as a functie What is the profit (percent of higher presented to Suppose they had purchased the 5150 PUT option20 25 persen Math 12 had purchased 100 shares of Apple Inc. one month ourite 12 por share 1 Why would you purchow PUTY What happen if Agile being parts Aprit und alles below 150 Why you be happy why? On se me dingran, dwergh the temperato change in die lang PUT to the position protective & Suppore Apple Inc. offers to give you a partnership share in its stock if the price of the share drops below $121.03 in one year from now. The share today is $121.03. In other words, you are offered an asset-or-nothing PUT option. Apple Inc. charges a nominal fee of S15.00 for this option and you would like to know if Apple Inc. is charging the right price. Annwer the followigestion per share). Draw the payoff diagram for the top nothing put. What is the payoff of the set-or-nothing put if the share price is $150? What is the payoff of the set-or-nothing put if the share price poes down to S100? You decide to evaluate this option with a coe-step binomial tree. The risk-free rate of interest is 5% (continuously compounded) and the dividend is 2.5%, and the volatility of the stock is 25% What is the risk-neutral probability of the share price going up! What is the price of the actor Gothing put option? Is the company charging you the right price? Why? IV Y 1. 125 points) The following table provided CALL. and PUT options for Apple Inc. (AAPL) stock, which ended trading at US$121.03 (-$0.93,-0.76%) on March 12, 2021 (ut 4:00PM EST, at close). According to the listing the options are going to expire on April 16, 2021 (e. it expires in 35 days). One option contract is equivalent to 100 shares Implied Volatility 62.70% 55.76% 50.73% 46,95% 35.24% 34.35% 40.82% CALL Option Priec Strike Last Price Bid Ask Change Change Volume Open Interest 85 35 25 36.2 36.35 TAS 4.99 1 939 90 31.25 31.25 31.4 -1.03 -3.19% 10 1,944 95 26.15 26,35 26.55 0.25 0.97% 1 601 100 21.4 21.55 21.7 -11 4.8994 79 4,566 120 5.59 5.55 5.7 -0.61 -9.8496 14,763 79.844 125 3.35 3.35 3.4 -0.44 -11.61% 6,240 72,491 150 0.28 0.28 0.29 -0,03 -9.6876 1,274 48.878 PUT Strike Last Price Bid Ask Change Change Volume Open Interest SS 0.18 0.16 0.18 0 32 2,732 90 0.24 0.23 0.25 -0.02 -7.69% 10 5,063 95 0.37 0.31 0.36 0 93 6,651 100 0.52 0.52 0.54 -0.01 1.890 423 13,718 110 1.5 1.47 15 0.11 79194 1,25) 19,349 120 4.55 45 4.55 04 9.64% 17.619 89.396 125 7.28 7.2 7.3 0.50 7.85% SNO 56,787 130 10.95 10.7 10.85 0.7 7.07 719 31,335 140 19.97 19.45 19.6 1:45 70 5,095 90,098 150 29.25 29.1 29.25 1.00 3.79 364 4,619 Source: AAPL 121.03 -0.93-0.76% Apple Inc. - Yahoo F Nudes. Real Time Price Implied Volatility 58.98% 53.71% 19.1294 44.48% 37.60% 34.42% 33.86936 33.90% 16.219 40.58% Suppose you purchased the S125 CALL.option contract written by one of your classmates What right does the option give you! At what cost per contract? What is the intrinsic value per contract of this option on March 127 What is the time value per contract of the option on March 129 What will happen if the price of Apple in stock to $150 per shure before April 16 and you decide to exercise your option? Will you make a profit or loss when the stock price is $1507 How much? TV Draw a digrun to show the putem of profesor los perdure for your call option position Suppose you purchase Apple Inele stock for $120 and Peption for $45 pet share with a strike price of S120 per share At the same time, you sell a call for 55.59 with nike price of $120w the following to What is the maximum profit or loss for this strategy Draw the profit and low diagram for this is a function of the stock price at expiration Draw the payoff diagram for this function of the stock price at expiration What is the profit clos) per contract of the shore prices down to $100 Suppose that you had purchased the $150 PU $29.25 per bare on March 12.2021 wer you had purchased 100 shares of Apple Indone month carlier for $120 per share why would you purchase the PUT What happens i Apple to charitating S150 peshare on April 16 und stille below 150 Why would be happy with what you do? On the same drame rap to show the pattern of properture from the stock position, the long PUT option, and the met position Protective po Vil d. Suppose Apple Inc offers to give you a partnership share in its stock if the price of the share drops below $121.03 in one year from now The share today is $121.03. In other words, you are offered an asset-or-nothing PUT option Apple Inc. charges a nominal fee of $15.00 for this option and you would like to know if Apple Inc. is charging the right price. (Answer the following questions per share) Draw the payoff diagram for the asset or nothing put What is the payoff of the auctor nothing put if the share price is $1507 What is the payoff of the asset or nothing put if the shute price goes down to $1007 You decide to evaluate this option with one step binomial Therisk free rate of interest is 5% (continuously Compacted) and the dividend is 25%, and the volatility of the stock i 25% What the incora probability of the sure price oing up What is the price of the actor nothing put option Is the company anting you the right price Why V VEL I + 1. 135 plus The following table provided CALL and PUT option for Apple Inc. (AAP) toch de trading US$12103-5093,-0.766) March 12, 2021 OPM EST one coming the the options to expire on April 16, 2021, it expire 35 days. One option is 100 652 CALE Option Price Strike Last Price Bid Open Implied Volatility 85 3525 36.2 36.35 -13 1 919 31.25 31.25 31.4 -103 199 10 95 26:15 26:35 2635 35 01 100 214 21 55 217 120 5.59 535 5.7 061 14.763 125 3.35 135 14 72.91 435% 150 021 0.29 0.03 96 MUT Strike Lattice B Change | V Opel Implied Volley 3 0.11 0.16 SE 9 90 0.34 0.23 0.25 -7.69% 16 5.863 95 0.37 0.36 . 13 5.651 100 0.52 0.54 .01 - 13.711 110 15 15 1,753 17.60 120 4.55 45 455 17 29. 125 725 72 73 SO 130 10.95 10.7 1095 140 19.97 19.45 196 145 5.09 0.09 36.23 150 39.25 361 S MAPL121.03-093-0.26 Anel-Nasda Suppose you purchased the 125 CALL plin contract witten by you What does the time you A what cost per te per contract of the in March 127 What the time per | What happen if the price of Apple lec 150 persones and you decide to your Will you make a profit or whom the price is $15 IV Draw a dignam to be the potem of profes perfor Suppose yon parche Apple Inc. och for 5130 and a PUT with 50 per At the time you will call for 55.9 w pie What is the maximumotor for Draw the profit and loding for the fact teckenstein Draw the payal deg for this as a functie What is the profit (percent of higher presented to Suppose they had purchased the 5150 PUT option20 25 persen Math 12 had purchased 100 shares of Apple Inc. one month ourite 12 por share 1 Why would you purchow PUTY What happen if Agile being parts Aprit und alles below 150 Why you be happy why? On se me dingran, dwergh the temperato change in die lang PUT to the position protective & Suppore Apple Inc. offers to give you a partnership share in its stock if the price of the share drops below $121.03 in one year from now. The share today is $121.03. In other words, you are offered an asset-or-nothing PUT option. Apple Inc. charges a nominal fee of S15.00 for this option and you would like to know if Apple Inc. is charging the right price. Annwer the followigestion per share). Draw the payoff diagram for the top nothing put. What is the payoff of the set-or-nothing put if the share price is $150? What is the payoff of the set-or-nothing put if the share price poes down to S100? You decide to evaluate this option with a coe-step binomial tree. The risk-free rate of interest is 5% (continuously compounded) and the dividend is 2.5%, and the volatility of the stock is 25% What is the risk-neutral probability of the share price going up! What is the price of the actor Gothing put option? Is the company charging you the right price? Why? IV Y 1. 125 points) The following table provided CALL. and PUT options for Apple Inc. (AAPL) stock, which ended trading at US$121.03 (-$0.93,-0.76%) on March 12, 2021 (ut 4:00PM EST, at close). According to the listing the options are going to expire on April 16, 2021 (e. it expires in 35 days). One option contract is equivalent to 100 shares Implied Volatility 62.70% 55.76% 50.73% 46,95% 35.24% 34.35% 40.82% CALL Option Priec Strike Last Price Bid Ask Change Change Volume Open Interest 85 35 25 36.2 36.35 TAS 4.99 1 939 90 31.25 31.25 31.4 -1.03 -3.19% 10 1,944 95 26.15 26,35 26.55 0.25 0.97% 1 601 100 21.4 21.55 21.7 -11 4.8994 79 4,566 120 5.59 5.55 5.7 -0.61 -9.8496 14,763 79.844 125 3.35 3.35 3.4 -0.44 -11.61% 6,240 72,491 150 0.28 0.28 0.29 -0,03 -9.6876 1,274 48.878 PUT Strike Last Price Bid Ask Change Change Volume Open Interest SS 0.18 0.16 0.18 0 32 2,732 90 0.24 0.23 0.25 -0.02 -7.69% 10 5,063 95 0.37 0.31 0.36 0 93 6,651 100 0.52 0.52 0.54 -0.01 1.890 423 13,718 110 1.5 1.47 15 0.11 79194 1,25) 19,349 120 4.55 45 4.55 04 9.64% 17.619 89.396 125 7.28 7.2 7.3 0.50 7.85% SNO 56,787 130 10.95 10.7 10.85 0.7 7.07 719 31,335 140 19.97 19.45 19.6 1:45 70 5,095 90,098 150 29.25 29.1 29.25 1.00 3.79 364 4,619 Source: AAPL 121.03 -0.93-0.76% Apple Inc. - Yahoo F Nudes. Real Time Price Implied Volatility 58.98% 53.71% 19.1294 44.48% 37.60% 34.42% 33.86936 33.90% 16.219 40.58% Suppose you purchased the S125 CALL.option contract written by one of your classmates What right does the option give you! At what cost per contract? What is the intrinsic value per contract of this option on March 127 What is the time value per contract of the option on March 129 What will happen if the price of Apple in stock to $150 per shure before April 16 and you decide to exercise your option? Will you make a profit or loss when the stock price is $1507 How much? TV Draw a digrun to show the putem of profesor los perdure for your call option position Suppose you purchase Apple Inele stock for $120 and Peption for $45 pet share with a strike price of S120 per share At the same time, you sell a call for 55.59 with nike price of $120w the following to What is the maximum profit or loss for this strategy Draw the profit and low diagram for this is a function of the stock price at expiration Draw the payoff diagram for this function of the stock price at expiration What is the profit clos) per contract of the shore prices down to $100 Suppose that you had purchased the $150 PU $29.25 per bare on March 12.2021 wer you had purchased 100 shares of Apple Indone month carlier for $120 per share why would you purchase the PUT What happens i Apple to charitating S150 peshare on April 16 und stille below 150 Why would be happy with what you do? On the same drame rap to show the pattern of properture from the stock position, the long PUT option, and the met position Protective po Vil d. Suppose Apple Inc offers to give you a partnership share in its stock if the price of the share drops below $121.03 in one year from now The share today is $121.03. In other words, you are offered an asset-or-nothing PUT option Apple Inc. charges a nominal fee of $15.00 for this option and you would like to know if Apple Inc. is charging the right price. (Answer the following questions per share) Draw the payoff diagram for the asset or nothing put What is the payoff of the auctor nothing put if the share price is $1507 What is the payoff of the asset or nothing put if the shute price goes down to $1007 You decide to evaluate this option with one step binomial Therisk free rate of interest is 5% (continuously Compacted) and the dividend is 25%, and the volatility of the stock i 25% What the incora probability of the sure price oing up What is the price of the actor nothing put option Is the company anting you the right price Why V VEL