George bought european put option contract

Assignment Help Financial Management

Reference no: EM131297415

George bought a European put option contract in UWY stock from Julie with a striking price of $34.68 per share. He paid $0.67 per share for this option contract. The size of the contract was 100 shares.

Suppose the market price of UWY stock was $32.84 per share at expiration. If the option was exercised at expiration, Julie would

A. buy the put option at $34.68 per share.

B. sell the put option at $32.84 per share.

C. buy a call option at $32.84 per share.

D. buy UWY stock at $34.68 per share.

E. buy UWY stock at $32.84 per share.

F. sell UWY stock at $34.68 per share.

G. sell UWY stock at $32.84 per share .

Reference no: EM131297415

Questions Cloud

Define the seven types of profit sharing plans : Define the 7 types of profit sharing plans: Profit Sharing Plans, Stock Bonus Plans, Employee Stock Ownership Plans, 401K Plans, Thrift Plans, Age Based Profit Sharing Plans, New Comparability Plans

What was the annual percentage increase : In 1903, the first Green Jacket Golf Championship was held. The winner’s prize money was $310. In 2015, the winner’s check was $1,670,000. What was the annual percentage increase in the winner’s check over this period?

The net means taking into account the premium on option : Suppose the market price of UWY stock at expiration is $32.84. Assume that both George and Julie are rational in the sense that if they could choose to exercise the option, then they would do so rationally. The "net" means taking into account the pre..

Percent interest-compounded annually : Eight years from now, you will be inheriting $100,000. What is this inheritance worth to you today if you can earn 7.25 percent interest, compounded annually?

George bought european put option contract : George bought a European put option contract in UWY stock from Julie with a striking price of $34.68 per share. He paid $0.67 per share for this option contract. The size of the contract was 100 shares. Suppose the market price of UWY stock was $32.8..

Assume the current market prices : Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $24.15, $7.50, $33.00, $25.68, and $83.98 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". A put opt..

Determine the number of payments required : A loan of WOO is to be repaid by annual payments of 100 to commence at the end of year and to continue thereafter for as long as necessary. If the loan cannot be repaid using integer number of regular payments, we simply pay the smaller additional ba..

Why is diversification in a stock portfolio important : If an asset is called derivative, what does that mean? Explain answer and give examples. Why is diversification in a stock portfolio important? Would diversification decrease all risk? Where can one find good estimates of current betas for real compa..

The expected return of your portfolio is nothing : You have ?$57,000. You put 20?% of your money in a stock with an expected return of 14%, ?$40,000 in a stock with an expected return of 18?%, and the rest in a stock with an expected return of 21?%. What is the expected return of your? portfolio? The..

User Account

All Pages