Calculate the exercise price of call option

Assignment Help Business Economics
Reference no: EM131868813

You bought a call option with a strike price of $45 on Fox stocks that are currently selling at $55 a share. The call option is trading at $4.50.

  1. Are your call options in the money, at the money, or out of money?
  2. Calculate the Exercise price of call option.
  3. What is the time value of your call option?

Reference no: EM131868813

Questions Cloud

Describe the discomfort of cognitive dissonance : Chapter 6 of your textbook describes the discomfort of cognitive dissonance and ways to alleviate this discomfort. Provide an example of cognitive dissonance.
Calculate the present value for investments : Calculate the present value for Investments X and Y if the discount rate is 15 percent.
Develop and detail a pricing strategy you will use : Develop and detail a pricing strategy you will use. Describe promotion plan you will implement. Identify target locations with an assessment of their viability.
Develop a possible line-item budget to fund the program : Review your Problem Evaluation Paper from Week Two. Select one of your possible solutions for the problem you identified.
Calculate the exercise price of call option : You bought a call option with a strike price of $45 on Fox stocks that are currently selling at $55 a share. The call option is trading at $4.50.
Summary of the main points and details of the experiment : Review papers typically follow the following structure: Support from the article or your text for your agreement or disagreement with the authors' position.
Write a proposal with security options for the organization : You Have Been Selected To Provide Consulting Services To A Security Organization That Is Switching From A Full In-House Security Team.
Investors about investing in the stock : Suppose the market price of the stock is $30 (different from the price that CAPM says it should be), what would you tell the investors about investing
Write a recursive java function : CPSC 327, Homework. Write a recursive Java function, void max( int[] A, int lo, int hi ), that finds the maximum value among the array elements

Reviews

Write a Review

Business Economics Questions & Answers

  Data on output and total variable costs

You have collected the following data on output and total variable costs:

  Lowering the price of either haircuts or alcoholic drinks

Supposed you own a barbershop/saloon. You are considering lowering the price of either haircuts or alcoholic drinks. The actual elasticity of demand for haircuts o 1.36 and for alcoholic drinks is 0.62. which price should you lowers? Explain

  Many manufacturers of clothing and other consumer goods

Many manufacturers of clothing and other consumer goods open stores in outlet malls where they charge much lower prices than they charge in their own stores located within cities. Outlet malls are typically located a considerable distance from major ..

  Measure have in the amusement park economy

Recently I began thinking about why the use of tokens for money is so popular. In casinos, I think that it is well justified, but there are some cases when those arguments are not useful. For example, why would an amusement park make you buy tickets ..

  Compute the revised slope

Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate

  Give an example of a firm that a monopoly right now

Give an example of a firm that's a monopoly right now. How/why did it become a monopoly? What circumstance enables a monopoly to exist?

  Decide between two mutual funds

An investor is trying to decide between 2 mutual funds. Mutual fund #1 offers a slightly higher return than mutual fund #2 so the investor decides that he will invest in mutual fund #1 unless the risk of mutual fund #1 is significantly higher than th..

  What characteristics of their products are firms choosing

Consider the online streaming services of Netflix and Amazon Prime (two providers of digital content). Discuss in 150 words whether the products offered by these firms are vertically or horizontally differentiated. Try to begin to sketch a formal mod..

  Qthe short-run production function for a manufacturer of

q.the short-run production function for a manufacturer of flash memory drives is shown in the table below. based on

  Economic value added measures business performance

Economic value added measures business performance more accurately than conventional accounting earnings because _________.

  Great value brand cheaper than their competitors

Wal Mart does carry goods in which are perfect competitive. How do we know this? Wal Mart introduced their own brand to compete with the branded good and of course mark their 'GREAT VALUE' brand cheaper than their competitors. A good thing? I would s..

  Benefits add to the burden on future taxpayers

Discuss the author(s) contention that in addition to ensuring the solvency of social security, the government should also consider how to increase benefits for recipients. How much would this increase in benefits add to the burden on future taxpayers..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd