At what price did ge last trade

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Reference no: EM132036440

Use data from yahoo.com or this exercise. (Use the screen shotPreview the documentView in a new window if you have difficulty locating where to look.)

In the Search Box, enter the stock symbol for General Electric (GE) Using the "Summary" tab, locate the 52-week trading range for GE.

At what price did GE last trade?

Click on the Options tab (in yellow below, then choose one of the call options at an expiration date three months into the future, then click on ONE (only one) of the call options listed by selecting the appropriate exercise (strike) price.

What is the last price (premium) shown?

Is the call option in the money? How can you tell?

Draw a graph in Excel showing the payoff and the profit to the holder of this call option over a range of prices, including the prices you found in the 52-week range of the S&P Stock Report.

Repeat steps d-f for a put option on GE using the same expiration date and the same strike price.

Evaluate the information you found on GE.

What conclusions can you determine about the calls and puts you examined over the range of prices for GE?

What similarities do you see between options and call/convertible provisions in bonds? Why do you think these provisions are called convertible options?

Reference no: EM132036440

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