Time value component of the option pricing

Assignment Help Business Management
Reference no: EM133047551

An investor purchased 2 Intelligent Tech Put contracts (1 contract = 100 shares) with a $20 strike price, and paid a $1 premium per share. Intelligent Tech common stock is now trading at $15 a share. Ignoring the time value component of the option pricing, if you just looked at the intrinsic value how many total dollars is the investor up or down for this position? (Remember to factor in the premium paid, strike price, and current market price).

Reference no: EM133047551

Questions Cloud

Role of software in safety critical systems : What is the role of Software in Safety Critical Systems? List and describe Dependable Programming Guidelines.
Sales positions attractive and motivating for millennials : 1. From an expectancy theory perspective what steps can managers take to make sales positions attractive and motivating for millennials.
What is the nominal annual rate of interest compounded : A mortgage of $95,000 is amortized over 25 years by monthly payments of $573.25. What is the nominal annual rate of interest compounded semi-annually
Analyzing the differences between domestic businesses : Analyzing the differences between domestic businesses in the United States and its international businesses, in relation to the following objectives:
Time value component of the option pricing : An investor purchased 2 Intelligent Tech Put contracts (1 contract = 100 shares) with a $20 strike price, and paid a $1 premium per share. Intelligent Tech comm
What is the amount of the gain or loss on the disposal : The business's year-end is December 31. Date purchased = August 1, 2021 and Cash received on disposal = 32000. What is the amount of the gain or loss
How would a comparative analysis be made : How would a comparative analysis be made between the different factors to negotiate domestically compared to negotiating internationally in the sale of one or m
Future of patent examination at the uspto : 1. How should Commissioner Drew (the CEO of the Patents Organization) report back to Congress on whether Congress should extend the telework program TEAAP?
Do you think the keystone pipeline project : Do you think the Keystone Pipeline Project, with over 11,000 high paying union jobs, should have been cancelled? Why?

Reviews

Write a Review

Business Management Questions & Answers

  Differentiate between leadership and management roles

Differentiate between leadership and management roles, and provide specific examples from the text, literature, or personal example.

  Draw a graph showing his indifference curve

What kind of goods are root beer and ice cream for Mateo? Draw a graph showing his indifference curve?

  Verbal and non-verbal communication skills

In a minimum of 250 words, prepare a script that you would use to approach yourself in aconversation as if you are a new potential client. What verbal and non-verbal communication skills would grab your attention and make you want to respond.

  How much time will be allocated to each step or task

How much time will be allocated to each step or task? What voting mechanism is most appropriate for the size of the group and the specific stage of the process?

  Porphyrin is a pigment in blood protoplasm

Porphyrin is a pigment in blood protoplasm and other body fluids that is significant in body energy and storage. Let x be a random variable

  Outline the marketing channels

Marketing channels. To the best of your ability, outline the marketing channels of your product or service offering as they currently exist.  Refer to Figure 6.2 for some ideas.  Most product and service offerings will have more than one channel, ..

  Compute the? bond yield to maturity

Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 11 percent and the? market's required yiel

  Mention the weaknesses and pitfalls of such solution

Come up with new IT solution for the MBA program, please describe the issue that it will solve and include as much detail as available along with the benefits

  How does that relate to you as future business professional

Consider the adage , never ask a question for which you do not want an answer. How does that relate to you as a future business professional.

  Opportunity and benefit for standard in the market

Critically analyse the program, the standard and prospects for success. For example (here are some possible ideas for discussion): How is success measured? What

  Utilize a process called campaign management

When Ford is working on relationship marketing they can utilize a process called campaign management which involved monitoring and leveraging customer.

  Calculate gdp in using the expenditure approach

Calculate GDP in 2009 for this economy using the value added approach. Also, calculate GDP in 2009 using the expenditure approach. You need to show all ofyour work for full credit.

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