Question: You short 5 put option contracts on Intel (INTC) with a strike price of $30.00. The option premium is $1.50 per share, and the market

You short 5 put option contracts on Intel (INTC) with a strike price of $30.00. The option premium is $1.50 per share, and the market price for INTC on the date you enter the contracts is $28.80. What is likely) your gain or loss it when the options expire INTC is selling for $33.50? (Total-value answer, be sure to specify gain or loss)

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!

FORMATIVE ASSESSMENT 1 [100 MARKS] Read the CASE Study below and answer ALL questions that follow CASE STUDY Information Established Manufacturers (Pty) Ltd is a South African company specialising in...

You short 8 put options contracts on Intel (INTC) with a strike price of $30.00. The option premium is $1.25 per share, and the market price for INTC on the date you enter the contracts is $28.60....

Hi, Can you please show the working out in simple terms, I would really like to understand how this works. Thanks Dale bought 5 put option contracts for NAB shares, with a strike price of $8.76. At...

You short 8 put option contracts on Intel with a strike price of $ 6 0 . 0 0 . The option premium is $ 1 . 2 5 per share, and the market price for Intel on the date you enter the contracts is $ 6 0 ....

Dale bought 8 put option contracts for NAB shares, with a strike price of $8.23. At the expiry date the market price, or spot price, is $5.91. Each contract consists of 100 shares. What would Dale's...

Use these option quotes to answer the questions 30 and 31. AA Company Price 35 20 Calls Strike Symbol Last Chg Bad Ask Vol Open Int 2750 AAEY 770 to 28 770 780 2 289 30.00 AAEF 5.20 10.36 5.20 5.30...

Alex sold 5 put option contracts for NAB shares, with a strike price of $8.60. At the expiry date the market price, or spot price, is $6.70. Each contract contains 100 shares. What would Alex's loss...

Jay sold 6 put option contracts for NAB shares, with a strike price of $9.03. At the expiry date the market price, or spot price, is $6.23. Each contract contains 100 shares. What would Jay's loss be...

Mandy bought 5 call option contracts for NAB shares, with a strike price of $11.59. At the expiry date the market price, or spot price, is $15.56. Each contract contains 100 shares. What would...

Say you own an asset that had a total return last year of 13.9 %. If the inflation rate last year was 3.5 %, what was your real return?(Round answers to 4 decimal places, round intermediate...

Tae-Hwan Ahn manages a Level III Trauma Center for Medical Corporation of America (MCA), a for-profit corporation that trades on the New York Stock Exchange. Ahn wants to upgrade his facility to a...

What is the value chain? Why is it important?

A firm with a flexible short - term financial policy will have: Group of answer choices a relatively high amount of short - term debt. a relatively low level of inventory. a relatively low ratio of...

Joe is a purchasing manager, and is negotiating a contract to buy 10,000 units of material from a supplier. Joe knows that to produce the product in house (preliminary cost analysis), he would have...