Question 1: Suppose you are a emotionally motivated investor (as opposed to a economically rational investor).Suppose you
Question:
Question 1:
Suppose you are a emotionally motivated investor (as opposed to a economically rational investor).Suppose you believe that GM's stock price is going to decline from its current level of $ 80.72 sometime during the next 2 months. For $ 1,176.81 (Initial premium) you could buy a 2-month put option giving you the right to sell 100 shares at a price of $ 83 per share. If you bought a 100-share contract for $ 1,176.81 and GM's stock price actually changed to $ 69.94 , your net profit (or loss)after exercisingthe optionwould be ______? Show your answer to the nearest .01.Do not use $ or , signs in your answer.Use a - sign if you lose money on the contract.
Question 2:
Suppose you are a emotionally motivated investor (as opposed to a economically rational investor).Suppose you believe that Apple's stock price is going to decline from its current level of $ 82.82 sometime during the next 2 months. For $ 532.81 (Initial premium) you could buy a 2-month put option giving you the right to sell 100 shares at a price of $ 79 per share. If you bought a 100-share contract for $ 532.81 and Apple's stock price actually changed to $ 86.98 , your net profit (or loss)after exercisingthe optionwould be ______? Show your answer to the nearest .01.Do not use $ or , signs in your answer.Use a - sign if you lose money on the contract.
Question 3:
Suppose you believe that Bennett Environmental's stock price is going to increase from its current level of $ 36.40 sometime during the next 7 months. For $ 119.00 you could buy a 7-month call option giving you the right to buy 100 shares at a price of $ 25 per share. If you bought a 100-share contract for $ 119.00 and Bennett's stock price actually changed to $ 29.48 , your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______? Show your answer to the nearest .01.Do not use $ or , signs in your answer.Use a - sign if you lose money on the contract.