Statement is incorrect for option chains

Assignment Help Financial Management
Reference no: EM132054241

1. Which of the following statement is INCORRECT for option chains?

a- put and call contract out of the money are commonly highlighted

b- the greek option chains are usually available for analysis

c- bid and ask prices are provided for all the available contracts

d- open interest provides the number of outstanding contract for each put and call strike price

e- the provide a list of all the available expiration dates for put and call option contract

2. Which of the following statement is INCORRECT?

a- a call at a $ 53 strike is out of the money if the stock is at $54.78

b- a straddle with a strike of $30 when the stock is at $25 has a put option leg in the money

c- a put option at an $80 strike out of the money if the stock price is at $83.57

d- a call option at a $25 strike is at the money when the stock is at $25

e- a put option at a $45 strike is in the money if the stock is at #37.80

Reference no: EM132054241

Questions Cloud

Create an infographic using an infographic maker : Develop a 1-page document to compare and contrast the terms data, information, and knowledge.
Proposing solutions during a negotiation : Why are options better than proposing solutions during a negotiation? How do options help establish a working relation to help come to a mutual gains agreement?
Percentage increases in health care costs : A company is experiencing double-digit percentage increases in health care costs. What suggestions can you offer that might reduce the rate of cost increases?
What is the importance of type to the overall design : BSBITU404 - Produce complex desktop published documents - What ergonomic requirements must you adhere to when working on a computer? What work organization
Statement is incorrect for option chains : Which of the following statement is INCORRECT for option chains?
Determine a internal processes of a team : "Different types of strategies to enhance team performance. Impact of effective strategies on threats to team performance and motivation"
Which is more useful to effective teamwork : Which is more useful to effective teamwork: knowing the team members' strengths or knowing the team members' weaknesses?
What exceptions to the statute of frauds may apply : What arguments can Sofa Manufacturing make that the Statute of Frauds is satisfied? If a court found it was not satisfied
Treasury bond with face value : Today is 1 January 2018. Sue just purchased a 10-year 4.5% p.a. Treasury bond with a face value of $100 at yield rate of j2 = 4.3% p.a.

Reviews

Write a Review

Financial Management Questions & Answers

  Rule under the uniform principle and income act

The _____ rule under the Uniform Principle and Income Act (UPIA) states that the trust should be taxed on the balance left over income,

  Country risk rating into the capital budgeting analysis

A firm may incorporate a country risk rating into the capital budgeting analysis by:

  Receives the limited liability of a corporation

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

  Explain the theory of normal backwardation

Explain the theory of Normal Backwardation. Explain the expected effects on price relationships and risk premiums.

  What is the after tax salvage at the terminal year

A company is considering the purchase of a new machine that will enable it to increase its expected sales.What is the after tax salvage at the terminal year?

  Use higher cost of capital to analyze project

Which of the following informational updates would prompt a financial manager to use a higher cost of capital to analyze a project?

  Identify the arbitrage opportunity open to the trader

A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the call price is $10 and the put price is $5 in the market. The risk-free rate is 2% per annum, and the current stock pric..

  What is the free cash flow for sammies socks

You have been given the following Income statement elements for Sammie's Socks Inc. for 2014. what is the Free Cash Flow for Sammie's Socks for 2014?

  Will you owe tax on the capital gain

Suppose you buy shares of a mutual fund. After you buy, the fund sells stocks in its portfolio which have risen in value over the past 5 years. Will you owe tax on the capital gain?

  Considering cash purchase of the stock of grips tool

Newman manufacturing is considering a cash purchase of the stock of Grips Tool. What is the maximum price per share that Newman should pay for Grips.

  Standard entropy of vaporization

A comparable amount of disorder is generated when any non-associated liquid evaporates and becomes a gas. An empirical observation called Trouton's

  Based on semi-annual analysis-what is current price of bond

ABC Corp. issued a 12 percent, 20 year coupon rate bond 5 years ago. Interest rates are now 8 percent. The par value of the bond is $1,000. Based on semi-annual analysis, what is the current price of the bond?

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