Question 1 apple stock ticker aapl is currently at 415share

Reference no: EM13347788

Question 1. Apple stock (ticker: AAPL) is currently at $415/share, while Google stock (ticker: GOOG) is currently at $835/share. Consider the following options:

_ Option A: A one-month call option to buy Apple stock at a strike of $415. Cost: CA

_ Option G: A one-month call option to buy Google stock at a strike of $835. Cost: CG

_ Option AG: A one-month call option to buy a package of one share each of Apple and Google at a strike of $1,250. Cost:CAG.

Which of the following alternatives is most correct?

(a) CAG > CA + CG.

(b) CAG < CA + CG.

(d) Any of the above is possible.

Question 2. A stock is trading at $80. You hold a delta-hedged portfolio in which you are short a call and long _ units of the stock. The delta of the call is 0.65 and the gamma of the call is 0.06. If the stock registers an unexpected price decrease of $4, the value of your delta-hedged portfolio will

(a) not change.

(b) decrease by approximately $0.12.

(d) decrease by approximately $0.48.

(e) increase by approximately $0.12.

Reference no: EM13347788

Questions Cloud

Marketing plan- designing a lunchbox menu for childrenthis : marketing plan- designing a lunchbox menu for childrenthis section could contain an organization chart for your

Your taskbullthe auction system should allow the user to : your taskbullthe auction system should allow the user to participate in a number of items and for the user to be able

Question 1ayou have 1000 and are given the choice of two : question 1ayou have 1000 and are given the choice of two investments. the first investment returns 1500 to you 3 in

You are the partner in charge of the audit of drugs4u ltd a : you are the partner in charge of the audit of drugs4u ltd a company which prepares manufactures and sells to the a

Question 1 apple stock ticker aapl is currently at 415share : question 1. apple stock ticker aapl is currently at 415share while google stock ticker goog is currently at 835share.

Synopsisthe purpose of the preliminary investigation phase : synopsisthe purpose of the preliminary investigation phase is threefold. first it answers the question is this project

Problem 1 use okuns law to answer the questions : problem 1. use okuns law to answer the questions belowutnbsp- ut-1nbsp -0.4gytnbsp- 3 assuming ut-1nbsp 7a. compute the

Question 1 a debbie is the purchasing manager of the : question 1 a debbie is the purchasing manager of the campus bookstore at phoenixs university. every year in march

Wellpoint and anthem merger in 2003standard ratio analysis : wellpoint and anthem merger in 2003standard ratio analysis should be used to supplement the discussion of strength and

User Account

All Pages