Calculate the option profit to the trader

Reference no: EM13273543

It is April and a trader buys 100 September put options with a strike price of $21. The stock price is $17.63 and the option price is $4.74. At the expiration, the stock price becomes $18.01. Calculate the option profit to the trader.

Reference no: EM13273543

Questions Cloud

What is the interest rate that the investor locked in : On January 8, 2016, a bank wants to lock in the 3-month interest rate starting on June 20, 2017. The investor buys June2017 Eurodollar futures contracts at 96.53. What is the interest rate that the investor locked in?

What is the forward price : An investor has just taken a long position in a 5-month forward contract on the stock. What is the forward price?

Where on the x-axis is the electric field zero : Teo point charges are on the x-axis. The first is located at -4 meters and has a charge of -6 coulombs. Where on the x-axis is the electric field zero

Which is an effective way to achieve such goal : Currently, the beta of a stock fund is 1.2. Suppose the fund manager wants to reduce the beta of this portfolio. Which is an effective way to achieve such goal?

Calculate the option profit to the trader : It is April and a trader buys 100 September put options with a strike price of $21. The stock price is $17.63 and the option price is $4.74. At the expiration, the stock price becomes $18.01. Calculate the option profit to the trader.

Influence of darwin on literature : Influence of Darwin on Literature," critic William Irvine describes the effect that Charles Darwin's evolutionary theory cast upon the age: "it undermined the argument for benevolent design in nature, explaining evolution according to principles w..

What is the net force on the charge at the origin : Three point charges are on the x-axis. The first is located at -4 meters asn has a charge of -6 coulombs. What is the net force on the charge at the origin

What price should be charged in orger to maximize profits : If fixed costs are 100,000 and the following chart represents the demand at various prices, what price should be charged in orger to maximize profits?

What price should the company charge : If demand falls to 73,700 units and the company wants to continue to earn a 0.31 return, what price should the company charge.

User Account

All Pages