How much is your options investment worth

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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

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