Shares of Beech Brewery, Inc. trade at $35. Call options with a strike price of $30 trade for $7.50. The options have 1 year until expiration and the risk free rate is 4%. According to put - call parity what should be the price of a $30 put option on Beech Brewery with one year to expiration.
62.Jim Lemke purchases a put option on Roofus Corp. for $3.50. The put option has a 1 year expiration and a strike price of $35. Currently Roofus Corp. is trading at $38. What is Lemke’s maximum loss on the put option?
63.Bill Henricksen, purchased a put option on Cycle Inc. for $4. The put option has a strike price of $40 and currently Cycle Inc. shares trade for $44. The expiration date of the option is 6 months from today. What is Henricksen’s maximum gain on his put option?
64.Which of the following option positions has a loss potential that is unlimited.
a.a long call
b.a naked short call
c.a short put
d.a long straddle
65.Drewfus Corp. is currently trading at $30. Call options with a strike price of $25 and 6 months to expiration are trading at $7 and call options with a strike price of $35 and 6 months to expiration are trading at $2. If Investor Andy Reutter buys a $25 call and simultaneously sells a $35 call what is his maximum gain on the position.
66.A call option on Dani Corp. is trading for $4.50. The strike price of the option is $25 and it has an expiration of 3 months. If the stock of Dani Corp. is trading at $28, how much of the option premium is attributed to intrinsic value?
67.Hannah Monstz is looking to purchase a call option on Thomas Co., which is currently trading at $35. The call option has a strike price of $32.50 and has 6 months to expiration. If the options has a premium of $5, what is Hannah’s maximum loss on the position?
68.Stanley Saeli is an investor who is bullish on LSL Corporation. Currently, LSL Corp. is trading at $51. To profit from his position, Saeli decides to sell put options on LSL Corp. that have a strike price of $45 and 1 year until expiration. The premium that he would receive on the option is $2.50. What is the most that Saeli can expect to gain per put option?
69.All of the following options are call options on Nixon Industries, which currently is trading at $35. They all have the same expiration date. Which of the following options should trade at the highest price.
a.A call option with a strike price of 20
b.A call option with a strike price of 30
c.A call option with a strike price of 40
d.A call option with a strike price of 50
70.All of the following options are put options with 9 months to expiration on Mac Industries. Which of the following options should trade at the lowest premium?
a.A put option with a strike price of 65
b.A put option with a strike price of 55
c.A put option with a strike price of 40
d.A put option with a strike price of 45
When the Tire Maintenance Contract Falls FlatFACTSAccessory Overhaul Group, Inc. (AOG) provides commercial aircraft component testing, overhauling and certification servi...Jul 26 2021
Identify any errors in the following sentences. Then write the correct form in the space provided. Each sentence contains one error.If you address your inquiry too our Cu...Jul 08 2021
Figure 38-21 shows an electron moving (a) opposite an elec- tric field, (b) in the same direction as an electric field, (c) in the same direction as a magnetic field, (d)...May 28 2021
Based on electronic configurations, which of these ions has the smallest number of unpaired electrons?a) Crb) Fec) Nid) MnJul 30 2021
Child Restraint Systems Use the numbers of defective child restraint systems given in Exercise 8. Find the mean, median, and standard deviation. What important characteri...May 31 2021
If the following system has no solution, then the value of k is: 2x+4y=44x−ky=6 Select one: a. 8 b. -8 c. 6 d. -6Apr 26 2021
Define human resource management >May 23 2020
Brainstorm potential risks associated with this project. Try to come up with at least five different risks. case: alaska fly fishing expeditionJul 28 2020
A float valve of the ‘ballclock’ type is required to close an opening of a supply pipe feeding a cistern as shown in the given figure. The buoyant force FB required to be...Jun 10 2020
It is held that the level of accounts receivable that a firm has or holds reflects both the volume of a firm’s sales on account and a firm’s credit policies. Which one of...Jun 20 2021