Discuss the current market prices

Assignment Help Finance Basics
Reference no: EM131936677

Question: Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $27.15, $3.82, $34.32, $29.00, and $80.08 respectively. Determine whether the following options are in, at, or out of the money. Let 1 be "in", 0 be "at", and -1 be "out".

1. A put option you are holding on UUU stock has a strike price of $27.00. The put premium on the option was $0.16 per share when you bought it.

2. A call option you are holding on WWW stock has a strike price of $4.00. The call premium on the option was $0.21 per share when you bought it.

3. A call option you wrote on XXX stock has a strike price of $33.00. The call premium on the option was $0.20 when you wrote the option.

4. A put option you wrote on YYY stock has a strike price of $29.00. The put premium on the option was $0.19 when you wrote the option.

5. A put option you are holding on ZZZ stock has a strike price of $80.00. The put premium on the option was $0.16 when you bought the option.

Reference no: EM131936677

Questions Cloud

Calculate the number of full month-end repayments : If the bank's quoted annual interest rate is 5%p.a compounding monthly calculate the number of full month-end repayments.
Explain the sharing-list creation and update methods used : Explain the sharing-list creation and update methods used in the IEEE Scalable Coherence Interface (SCI) standard.
Draw the yield curve associated with your results : Assume that the current 1-year interest rate is 1%. It is expected that the 1-year rate will rise to 3% next year, and then to 5% the following year.
Which were very popular in first-generation multi-computers : which were very popular in first-generation multi-computers, being replaced by 2D or 3D meshes or tori in the second and third generations of multi-computers?
Discuss the current market prices : Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $27.15, $3.82, $34.32, $29.00, and $80.08 respectively.
Book value of the asset : XYZ bought a press 4 years ago for $116,750 which is being depreciated straight-line to a salvage value of $4,250 over 6 years.
Determine the total cost of production for each options : Suppose that the firm needs to choose between producing the entire output at home or producing half the output at home and half abroad. Determine the total cost
Explain the e-cube routing mechanism built into the mdp : Explain the E-cube routing mechanism built into the MDP. Explain concept of using a combining tree for synchronization of events on various nodes in J-Machine.
How is it possible for airlines flying older models : New-model commercial airplanes are much more fuel-efficient than older models. How is it possible for airlines flying older models to make money

Reviews

Write a Review

Finance Basics Questions & Answers

  Suppose two workers earn labor incomes of 20000per year in

suppose two workers earn labor incomes of 20000per year in each of three tax accounting periods. one worker saves 20

  Calculate the amount for her and explain the account

Annie's mortgage statement shows a total payment of $699.12 with $604.60 paid toward principal and interest and $94.52 paid for taxes and insurance. Taxes and insurance for 3 months were collected at closing. Now after 6 months of payments, she..

  Calculate frontier for all possible investement combinations

Calculate the frontier for all possible investement combinations of Kalam Crop. and Adelphia Technologies (from 0% to 100%, in 1% increments). Determine the optimial risky portfolio if the risk-free rate is 3%.

  You own a bond with a face value of 10000 and a conversion

you own a bond with a face value of 10000 and a conversion ratio of 450. what is the conversion

  Market required yield to maturity on a comparable

Calculate the value of a bond that matures in 12 years and has a $1,000. par value. The annual coupon interest rate is 13% and the market's required yield to maturity on a comparable-risk bond is 12%.

  Pershare common stock dividend

If Figurate has 3 million shares of common stock outstanding, how large a pershare common stock dividend will it be able to pay?

  Can you share an example of an internal control

What are some internal controls in place at your organization? Can you share an example of an internal control failure at your organization? Why did this failure occur?

  Confidence interval for the mean

Some quality control experiments require destructive sampling in order to measure some particular characteristic of the product.

  Differences between a primary and secondary market

Discuss the differences between a primary and secondary market. Identify the contributions of secondary markets to the performance of primary markets.

  How much would you accumulate in each of the above funds

What relationship do you notice between the frequency of investment and the future value? Create a Column chart of the results that more clearly shows the outcome from more frequently investing

  Cost of common equity capital for the firm

If the current price of Two-Stage's common stock is $14.03, what is the cost of common equity capital for the firm?

  On 01032002 an investor buys 1 million us t-bill with

on 01032002 an investor buys 1 million us t-bill with maturity date 06272002 and discount yield 1.76 on the settlement

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