Question: Marcus bought a $480 call on the S&P 500 Depository Receipts (SPY) ETF expiring on Dec 31 2021. He paid $1.54 for this option on

Marcus bought a $480 call on the S&P 500 Depository Receipts (SPY) ETF expiring on Dec 31 2021. He paid $1.54 for this option on Oct 30, 2021. On Dec 31 2021 the SPY closes at $495.40. What is Marcus payoff on the option?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

uff Wheels has forecast the demand and the cost project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a...

From the following quotes in the WSJ, at about what interest rate could a US bank borrow unsecured overnight from other US-based banks? Exchange-Traded Portfolios WSJ.com/ETFresearch Borrowing...

From the following quotes in the WSJ, at about what interest rate could a US bank borrow overnight from other banks using US T-Bills as collateral? Exchange-Traded Portfolios WSJ.com/ETFresearch...

Neiman Marcus filed for bankruptcy on May 7, 2020. The case study provides invaluable background information about Neiman Marcus from its opening in 1907 to 2006 when the case was written. Use the...

Please help me with a-2/a-3/b-2/b-3/c-2/c-3 It's better if you have detailed steps. Refer to the stock options on Apple in the Eigure 2.10. Suppose you buy an June expiration call option on 30 shares...

b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % c-1. What if you had bought an...

Suppose you buy a May expiration call option on 100 shares with the excise price of $145. Would you exercise the call if you had bought the May call with the exercise price $145? 14 b-1. Would you...

where is it not visible that is all the detail its 6 questions Title Page Question 1 Question 2 Question 3 Question 4 Question Grade; FINC 3116 Financial Management ! Assignment 1 Name Student Number...

Explain whether or not a warrant is appropriate for a search, and why? Scenarios are as follows: A string of burglaries that targeted expensive properties startled the calm suburban community of...

Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an May expiration call option on 100 shares with the excise price of $145. a-1. If the stock price in May is $149, will you...

Suppose that the amount of time required for the electrician or the carpenter to complete a job of rewiring or paneling is given by the following table: Rewiring 5 hours 10 hours Paneling 10 hours 15...

At December 31, 2019, the balance of Glasgow Ltd.s retained earnings account was $450,000. During 2020, the company had the following transactions: Acquired 5,000 treasury shares at $75 per share....

1 Sofia and Zara are walking along the same path. a How far does Zara walk every 10 minutes? b Sofia starts after Zara. How long after? c How far does Sofia walk every 10 minutes? d The lines cross....

From the following quotations, what, if anything, can you conclude about elasticity of demand? a. "Good weather resulted in record wheat harvests and sent wheat prices tumbling. The result has been...

According to Current Housing Reports, published by the U.S. Census Bureau, the primary heating fuel for all occupied housing units is distributed as follows. Primary heating fuel Percentage Utility...

A sample of 100 colored balls is selected from a large container of red balls and white ballscall it Container A. A second sample, this one of size 150, is selected from another container of red...

Maguire Company obtains 100 percent control over Williams Company in 2010. Several years after the takeover, consolidated financial statements are being produced. For each of the following accounts,...

The following note was contained in a recent Ford Motor Company annual report: Required: 1. What amount of ending inventory would have been reported in the current year if Ford had used only FIFO? 2....

Trina is 3 7 years old. She has gotten top performance reviews at work. Despite this fact, she is discharged from her job. Trina can sue her employer under the Age Discrimination in Employment Act...

In hindsight, what should Gail have done before this eventful Monday morning?

What internal and external forces were influencing DigiTech?

What do you believe has led to the emergency meeting between Stephanie and Gail from (1) an organizational perspective and (2) a strategic HR perspective?