+1-415-670-9189
info@expertsmind.com
Calculates payoffs from buying call
Course:- International Economics
Reference No.:- EM1368064




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> International Economics

1. Ms. Smith longs 1 XYZ Feb. 40 Call @ 3 and hold it it to expiration. Suppose no transaction costs, Examine this investment in terms of possible profit or loss. Make a payoff diagram.

2. Ms. Smith writes 10 BETA Jan. 40 put @ 4. The put is exercised when the stock is trading at 38. Ms. Smith immediately sells the stocks in the market. What is Ms. Smiths profit or loss?

3.Ms. Smith writes 10 KLP Dec. 55 call @ 5, uncovered. The call is excersized when the stock is trading at $58. What is Ms. Smiths profit or loss?

4. In Dec. 16 an investor buys 1 ALFA Feb 60 call @ 3 1/2. In January 10th ALFA share closes at $63. What is the intrinsic value of the call? What is its time value?

5. Ms. Smith shorts 1 XYZ Feb. 40 Call @ 3 covered. She purchases XYZ for $30 a share. Assuming no transaction costs, analyze this investment in terms of possible profit or loss. Draw a payoff diagram.

6. Suppose you have the following positions
Long 10 CDE Jan. 50 call @ 3
Long 10 CDE Jan. 50 put @ 4

Analyze this investment in terms of possible profit or loss. Draw a payoff diagram.

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (International Economics) Materials
In an interview in October of 2002, the departing head of the European Central Bank said that a fall in the dollar was unavoidable, and that the euro should not be the only
Prepare a report with an analysis of your findings. For exercise 1 provide an analysis of the implications that for the United States may have fact that those specific count
How did identities conflict during the resistance to colonialism? For instance, in what ways did nationalist identity conflict with class identity and religious identity?
Assume you hear a commentator on radio state that when interest rates fall, the stock market (the Dow Jones average say) tends to rise.
The Economist or any other publication covering the world economy, international trade, or international economics and provide summary of an international trade article in a
Explain how current account imbalance create a risk for the global economy. What does the large U.S. current account deficlt tell us about the U.S economy Are there reasons
In Florida, the huge contraption turns and begins lumbering down the next row of juice-laden Valencia oranges. The operator watches his progress on two TV screens in his cab,
Below is the graph of the domestic Supply and Demand (Graph 2.a.) for Brazilian Coffee beans. From the supply and demand schedules above, what are the equilibrium price and