Reference no: EM133024300
Question - Sugar Land stock is selling for $47 and has the following six-month options outstanding.
Strike Price Option Market Price
Call Option $45 $4
Call option $50 $1
a. Which option(s) is (are) in the money?
b. What is the time premium paid for each option?
c. What is the profit (loss) at expiration given different prices of the stock, $30, $50, $55, and $65-if the investor buys the call with the $45 strike price?
d. What is the profit (loss) at expiration given different prices of the stock: $30, $50, $55, and $65-if the investor buys the call with the $50 strike price?
e. Estimate profit and loss if the investor buys the stock and sells the call with the $50 strike price if at the expiration stock price are: $30, $50, $55, and $65. What is the breakeven stock price at expiration for investor to make profits?
f. Estimate profit and loss if the investor buys the stock and sells the call with the $45 strike price if at the expiration stock price are: $30, $50, $55, and $65. What is the breakeven stock price at expiration for investor to make profits?
|
What the amount of depletion for year one on this well
: By December 31, Year 1, 25,000 barrels of oil were produced and sold. What the amount of depletion for Year one on this well
|
|
Well-suited for data quality assessment
: Research some data profiling tools that are well-suited for data quality assessment and provide appropriate sources for your findings.
|
|
How much money will you have at the end of the five years
: You just inherited $100,000. You are investing this money for 5 years at 5% compounding interest. In whole dollars, how much money will you have at the end
|
|
Briefly explain purpose of the database
: Briefly explain the purpose of the database. Provide a visual representation of your database's tables.
|
|
Estimate profit and loss
: Estimate profit and loss if the investor buys the stock and sells the call with the $50 strike price if at expiration stock price are: $30, $50, $55, and $65
|
|
Maintain and ensure privacy and confidentiality
: Why are privacy and confidentiality important for your study participants? What are some ways to maintain and ensure privacy and confidentiality?
|
|
What is the purchase price of the machine
: The machine will generate cash inflows of $96,000 each year. The salvage value at the end of the project is $80,000. What is the purchase price of the machine
|
|
Different data algorithms
: When using different data algorithms, why is it fundamentally important to understand why they are being used?
|
|
What is free cash flow to equity
: Assume the following: OCF = 30,000, NWC this year end = 10,000, NWC last year end = 8,000. What is free cash flow to Equity
|