How much is your options investment worth

Assignment Help Financial Management
Reference no: EM131923633

Homework Assignment-Stock Options

                                                            Calls                            Puts

          Strike                                      

Close             Price                Expiration        Vol.   Last     Vol.   Last   

Hendreeks                                                                

    103              100     Feb                  72       5.20                 50      2.40   

    103              100     Mar                 41       8.40                 29      4.90   

    103              100     Apr                  16       10.68               10      6.60   

    103              100     Jul                   8          14.30               2          10.10   

Suppose you buy 50 February 100 put option contracts.

What is your maximum gain?

On the expiration date, Hendreeks is selling for $87.45 per share. How much is your options investment worth? What is your net gain?

A call option is currently selling for $5.30. It has a strike price of $60 and six months to maturity. A put option with the same strike price sells for $7.80. The risk-free rate is 4.3 percent, and the stock will pay a dividend of $2.80 in three months. What is the current stock price?

Suppose you buy one SPX call option contract with a strike of 1,300. At maturity, the S&P 500 Index is at 1,321. What is your net gain or loss if the premium you paid was $14?

Reference no: EM131923633

Questions Cloud

What is the market value of bond : A 10-year bond pays annual interest of 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?
Air expansion plans with bond issue : complete the requirements of the Mini-case “Financing S & S Air’s Expansion Plans with a Bond Issue”
How much is balloon payment : Ann wants to buy an office building which costs $2,000,000. If Ann pays the required monthly payment for 5 years, how much is her balloon payment?
Shares of common stock outstanding-company wacc : Filer Manufacturing has 10 million shares of common stock outstanding. What is the company's WACC?
How much is your options investment worth : On the expiration date, Hendreeks is selling for $87.45 per share. How much is your options investment worth? What is your net gain?
Predict the adoption of tri star program : What effects would you predict the adoption of the Tri Star program would have on shareholder value?
Achieving variety of short and long-term financial goals : Appropriate mix of stocks and bonds changes as person moves through different phases of life in hope of achieving variety of short and long-term financial goals
Find effective total interest rate and corporate tax rate : Find the Effective total interest rate and Effective total corporate tax rate.
Change in the value of the dollar effect consumers : How does a change in the value of the dollar effect consumers? How does it impact prices and interest rates?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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