Reference no: EM133113080
1. You have purchased a 45-strike call option for $4.35 which expires in 35 days and the stock is currently at $43.69 per share. At expiry, the stock closes at $46.05. What is your total profit or loss?
a. A net loss of $330.
b. Neither a gain or loss.
c. A net gain of $435.
d. A net loss of $435.
e. A net gain of $330.
2. You sold a 22.5 strike put for $1.65 on a stock that currently sells for $24.98. If the put is exercised, what is the net price of the stock, and who buys it?
a. You buy it at $22.50 a share.
b. The counterparty buys it for a net price of $22.50 a share.
c. The counterparty buys it for $24.15.
d. You buy it for a net price of $24.15 per share.
e. You buy it for a net price of $20.85 per share.
3. You purchased 5 contracts of 60-strike calls for a stock currently trading at $63.25. The stock splits 3:2. How many contracts do you know own representing how many shares each, and at what strike?
Space 1: Space 2: Space 3:
4. You have purchased a 17.5 strike put for $1.57 which expires in 48 days and the stock is currently at $18.05 per share. At expiry, the stock closes at $16.87. What is your total profit or loss?
a. A net gain of $157
b. A net gain of $63
c. A net loss of $63
d. A net gain of $94
e. A net loss of $94
5. What is the intrinsic value of a 35-strike put option on a non-dividend-paying stock currently priced at $32.27 if the risk-free rate is 3.25%, the stock's historic volatility is 30%, the option delta is -.45, and expires in 86 days?