Options information on Apple stock is given in the following table. Suppose you buy a March-18th...
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Options information on Apple stock is given in the following table. Suppose you buy a March-18th expiration call option with an exercise price of $165. If the stock price on March-18th goes up to $175. Apple (AAPL) Expiration 18-Feb. 18-Mar 18-Feb 18-Mar 18-Feb 18-Mar Strike 155 155 165 165 170 170 Underlying stock price = $162.41 Put 3.75 5.72 7.88 9.78 10.88 12.72 A. Will you exercise your call? Call 11.22 12.97 5.17 7.28 3.1 5.13 Yes B. What is the gross profit? [Select] C. What is the premium cost? [ [Select] D. What is the rate of return on your position? 37.36% > < > Options information on Apple stock is given in the following table. Suppose you buy a March-18th expiration call option with an exercise price of $165. If the stock price on March-18th goes up to $175. Apple (AAPL) Expiration 18-Feb. 18-Mar 18-Feb 18-Mar 18-Feb 18-Mar Strike 155 155 165 165 170 170 Underlying stock price = $162.41 Put 3.75 5.72 7.88 9.78 10.88 12.72 A. Will you exercise your call? Call 11.22 12.97 5.17 7.28 3.1 5.13 Yes B. What is the gross profit? [Select] C. What is the premium cost? [ [Select] D. What is the rate of return on your position? 37.36% > < >
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A To determine whether you should exercise your March 18 call option with an exercise price of 165 w... View the full answer
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Posted Date:
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