What was the premium on the December 20 FB 190 call, i e the Facebook call option which expires on December 20, 2019, and has a strike price of $190 On Wednesday, Nov 13, 2019, Facebook stock (symbol FB) closed at $193 21 a share, down $1 28 on the day Consider the following chart giving the premiu...

Short Position in the Dec 20 FB 190 call As the price move up Call sellers loss increases The brea ...

What was the premium on the December 20 FB 190 call, i.e. the Facebook call option which

Fantastic news! We've Found the answer you've been seeking!

Question:

On Wednesday, Nov. 13, 2019, Facebook stock (symbol FB) closed at $193.21 a share, down $1.28 on the day. Consider the follow

What was the premium on the December 20 FB 190 call, i.e. the Facebook call option which expires on December 20, 2019, and has a strike price of $190?

Related Book For answer-question

Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

See More Books

Posted Date: Nov 26, 2019 01:09 AM

See More Questions

A call option with a strike price of $50 on a stock selling at $55 costs $6.50. What are the call option's intrinsic and time values?
A call option with a strike price of $50 costs $2. A put option with a strike price of $45 costs $3. Explain how a strangle can be created from these two options. What is the pattern of profits from...
A put option with a strike price of $90 sells for $7.40. The option expires in two months, and the current stock price is $92. If the risk-free interest rate is 5 percent, what is the price of a call...
The annual consumption of beef per person was about 64 7 lb in 2000 and about 60 3 lb in 2007 Assume B(t), the annual beef consumption t years after 2000, is decreasing according to the exponential...
Rocco's Gourmet Foods, Inc., provides the following data from the company's records for the year ended July 31, 20X5: a. Salary expense, $105,300 b. Cash payments to purchase plant assets, $181,000...
Suppose that USD-sterling spot and forward exchange rates are as follows: Spot..........................................1.5580 90-day forward.............................1.5556 180-day...
The plaintiffs, Lee and Yoon, were the parents of H.L., a South Korean citizen who attended high school in Idaho as part of an exchange program. With permission from both plaintiffs and his host...
Annual Adjustments Palmer Industries prepares annual financial statements and adjusts its accounts only at the end of the year. The following information is available for the year ended December 31,...
Research articles on Online Analytic Processing (OLAP) and Online Transaction Processing (OLTP). Next, compare and contrast the key similarities and differences between Online Analytical Processing...
Ken (birthdate July 1, 1987) and Amy (birthdate July 4, 1989) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of...
Taxable income Taxable income 0 - 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 335,001 - 10,000,000 10,000,001 - 15,000,000 15,000,001 - 18,333,333 18,333,334 + Output area: Taxes: 15%...
How does the marginal benefit of a good change as the quantity produced of that good increases?
What are the sellers and the buyers remedies in case of a breach?
In problem 11 , what is the marginal cost of 1 pound of food in Yucatan when the quantity produced is 150 pounds per day? What is special about the marginal cost of food in Yucatan? Problem 11...
What conditions must be met to hold a secondary party liable?
Roberta Lunt deposited a $625 nonlocal check payable to her with a teller at her bank at 10:30 a.m. on Monday. The next day, Tuesday, she went to the bank to withdraw $300 and was told by the teller...
[The following information applies to the questions displayed below.] Pro-Weave manufactures stadium blankets by passing the products through a weaving department and then a sewing department. The...
The power company must generate 100 kW in order to supply an industrial load with 94 kW through a transmission line with 0.09  resistance. If the load power factor is 0.83 lagging, find the...
Suppose that in Problem 24.1 the spread between the yield on a five-year bond issued by the same company and the yield on a similar risk-free bond is 60 basis points. Assume the same recovery rate of...
Can a trading rule based on the past history of a stock's price ever produce returns that are consistently above average? Discuss.
Explain the term "single tranche trading."
During the process of XCI, which chromosome expresses the Xist gene and which one expresses the Tsix gene? a. Xist is expressed only by Xa, and Tsix is expressed only by Xi. b. Xist is expressed only...
The effects of paramutation may vary with regard to a. the likelihood that the parmutagenic allele will alter the paramutable allele. b. the stability of the paramutagenic allele over the course of...
If the VIN3 gene had a loss-of-function mutation, how do you think that would affect the phenotypes of summer-annual and winter-annual Arabidopsis plants? a. Neither type would flower. b. Both types...

What was the premium on the December 20 FB 190 call, i.e. the Facebook call option which

Question:

Expert Answer:

Short Position in the Dec 20 FB 190 call As the price move up Call sellers loss increases The brea... View the full answer

Options Futures and Other Derivatives

Students also viewed these finance questions