Option quotations in the wall street journal

Assignment Help Financial Management
Reference no: EM13944581

Please show calculations on the following questions based on listed option quotations in the Wall Street Journal.

                                                                                  Call                                                     Put                              

Price            Strike                      Expir.                        Vol.                        Last                        Vol.                   Last

14.36           12.50                         Jun                         372                        3.35                       5368                 1.50

14.36           15.00                         Jun                           55                        1.15                         652                 2.21

14.36           15.00                        Sep                       1852                        4.05                         532                  3.75

14.36           17.50                        Sep                       1819                        1.90                           40                  2.30

Suppose you write a September $17.50 call. What would be your profit or loss in October given the following stock prices in September?

$15.12

S19.45

$24.12

$29.14

You write an October $32.50 call option at a premium of $4.50.What would be your profit or loss given the following stock price in October?

$20.12

$31.45

$36.50

$44.12

Reference no: EM13944581

Questions Cloud

Competitive advantage from a theoretical perspective : An academic discussion of what constitutes sustainable competitive advantage from a theoretical perspective
Use for debt when calculating the cost of capital : Bennington Industrial Machines issued 142,000 zero coupon bonds seven years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.2 percent. Interest rates have recently increased, and the bonds now have a yield to maturity..
Discuss the requirements for remote administration : Discuss the requirements for remote administration, resource management, SLA management and billing management of Google App Engine.
The market capitalization rate on the stock : The market capitalization rate (required rate of return) on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE is 12% and its expected EPS is $5.00. If the firm's plow-back ratio is 50%, its dividend growth rate (g) will be __________. ..
Option quotations in the wall street journal : Please show calculations on the following questions based on listed option quotations in the Wall Street Journal. Suppose you write a September $17.50 call. What would be your profit or loss in October given the following stock prices in September? Y..
Approach to employee relations : What sort of approach to Employee Relations is BCG adopting? What are the advantages and disadvantages of its approach, and is this advisable now the business is expanding?
Creates one new share for every warrant exercised : When warrants are exercised, the company goes through an accounting process to determine the new number of shares created. This process assumes that the company. Creates one new share for every warrant exercised
Population proportion of cars with some damage : A "wild safari" park allows visitors to drive their cars through over 400 acres to see more than 1000 animals roaming freely. The park claims that the probability of some car damage by an animal during a safari drive-thru is 0.65. Suppose 20 cars ..
Net annual rate of return to the nearest basis point : You have $16,000 to invest in a mutual fund with a NAV = $45. You choose a fund with a 4% front load, a 1% management fee, and a 0.25% 12b-1 fee. Assume that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the..

Reviews

Write a Review

Financial Management Questions & Answers

  Short answer and short problems1nbspnbspnbspnbspnbsp

short answer and short problems1.nbspnbspnbspnbspnbsp briefly discuss the most important factors limiting the

  Using the net present value when evaluating projects

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company’s project, assuming the company’s cost of capital is 10.66 percent. The initial outlay for the project is $414,171.

  What is after-tax cost of debt

Bedrick Co. Can borrow at an interest rate of 7.3% for a period of eight years. Its marginal federal-plus state tax rate is 40%. What is Bedrick's after-tax cost of debt? The company faces a tax rate of 40%. If the company wants to issue new debt, wh..

  Yield the same total amount as this yearly payment

Find the lump sum deposited today that will yield the same total amount as this yearly payment (made at the end of each year for 20 years at the given interest rate, compounded annually). $9500 at 4%

  What is annuity worth in terms of single equivalent amount

An annuity provides for 10 consecutive end-of-year payments for $4,500. The average general inflation rate is estimated to be 5% annually, and the market interest rate is 12% annually. What is the annuity worth in terms of a single equivalent amount ..

  Exchange rate agreements and the currency swap

IBM is thinking about issuing a bond in Europe and swapping the annual payments back to US dollars. If fixed rates are 7% in Europe and 9% in the US and the current exchange rate is 1.40 Dollars to every Euro then:

  Expected return on the stock fund

Your retirement strategy is to invest 500 per month in an equity mutual fund and 200 per month in a bond fund. Your retirement date is 30 years from now. The expected return on the stock fund is expected to be 8% and the expected return on the bond f..

  What is the company EBIT when it performs

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1310 per unit; variable costs = $336 per unit; fixed costs = $3939947; quantity = 68759 units. Suppose the company believes all of its estimates are acc..

  Determine the effective annual rate

Changing compounding frequency Using annual, semi annual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR).

  Comparing two different capital structures-all-equity plan

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 705,000 shares of stock outstanding. Under Plan II, there would be 455,000 shares of stock outstan..

  What are the key components of a banks contingency

What are the key components of a bank's contingency funding plan? What are the differences between the narrative section and the quantitative section?

  What will be the percentage change in the bond price

A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?

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