Use the data in the figure to calculate the payoff

Assignment Help Finance Basics
Reference no: EM13539012

1.value:
10.00 points
Refer to Figure 15.1, which lists the prices of various IBM options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following January 2012 expiration options, assuming that the stock price on the expiration date is $165. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)

(Figure 15.1)
IBM Underlying stock price:166.76
Experation Strike Last Volume Open Interest Last Volume Open Interest
Sep 2011 160 9.15 796 1835 2.62 1271 4298
Oct 2011 160 11.95 301 2396 5.35 296 7443
Jan 2012 160 15.00 101 7890 9.40 102 4920
Apr 2012 160 17.35 111 122 13.30 4 71
Sep 2011 165 5.80 1805 3542 4.10 1711 5085
Oct 2011 165 8.70 329 3866 7.00 131 2651
Jan 2012 165 11.70 93 4045 10.85 303 4466
Apr 2012 165 14.30 58 781 - - 54
Sep 2011 170 3.00 3053 7959 6.20 2744 12435
Oct 2011 170 5.86 457 7506 9.25 148 4584
Jan 2012 170 8.93 73 6876 13.00 58 2929
Apr 2012 170 11.32 36 58 - - 52

Payoff Profit/Loss
a. Call option, X = 160
b. Put option, X = 160
c. Call option, X = 165
d. Put option, X = 165
e. Call option, X = 170
f. Put option, X = 170

Reference no: EM13539012

Questions Cloud

What is the final velocity of the first ball : Two 0.40kg soccer balls collide elastically in a head-on collision. The first ball starts at rest, and the second ball has a velocity of 3.5 m/s. What is the final velocity of the first ball
Explain what is the composition of the mixture by mass : A gas mixture composed of helium and argon has density of 0.670 g/L at 755 mmHg and 298K. What is the composition of the mixture by mass
Determine the moment about the pin due to the force : 1.For an SO2 emission rate of 22,000 kg/day and an exhaust gas flow rate of 5.0 million m^3/hour(after the scrubber) measured at 150 C and 1atm pressure, calculate the concentration of SO2 in the exhaust gases(ppm).
Find out the volume hc2h3o2 required to prepare : Determine the volume, in mL, of 2.00 M HC2H3O2 required to prepare each of the following solutions: 0.20 M acetic acid, and 0.020 M acetic acid.
Use the data in the figure to calculate the payoff : Use the data in the figure to calculate the payoff
State what will the ph of the final solution : The Ka for acetic acid is 1.8x10-5. If 340. ml of 3.45 M acetic acid is added to 823 ml of water, what will the pH of the final solution be
The velocity and the total distance traveled : The acceleration of a particle is defined by the relation a=-8m/s^2. Knowing that x=20m when t=4s and that x=4m when v=16m/s, determine (a) the time when the velocity is zero, (b) the velocity and the total distance traveled when t=11s.
Calculating present value : Calculating present value) What's the present value of $1,000 to be received in 8 years? (Your required rate of return is 7% a year.
Evaluate calculate the required quantity of the reagent : Calculate the required quantity of the reagent and the volume of water that must be added for dilution.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is trhe relevalent cost of preferred stock

Investment bankers have advised General Bill that flotation costs on the new preferred issue would be 5% of the selling price. The general's marginal tax rate is 30%. What is trhe relevalent cost of preferred stock?

  Estimate the current price of the stock

BioScience,Company, will pay a common stock dividend of $3.20 at the end of theyear. The required return on common stock is 14%. The firm has a constant growth rate is 9%.

  What is the percentage change in the price of these bonds

Both Bond Bill and Bond Ted have 10.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity.

  Companies that use ifrs may report all their assets on the

companies that use ifrsa may report all their assets on the statement of financial position at fair value.b may offset

  Suppose an accounting event occurs and there is no market

suppose an accounting event occurs and there is no market reaction. what should we

  How much will you have when the cd matures

Suppose you have $2,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 4% interest, compounded annually. How much will you have when the CD matures?

  Small motors inc which is currently operating at full

small motors inc which is currently operating at full capacity has sales of 29000 current assets of 1600 current

  What steps have countries taken to support the exchange rate

What steps have countries taken to support the exchange rate of their currency against foreign currencies?

  Preparing section for the training document

Butler just came back from his meeting with the training coordinator. They now want to include some additional items in the upcoming training session.

  Find the amount of interest in her 133rd payment

Ellen has a thirty year mortgage with level payments. The amount of principal in her 82nd payment is $259.34, and the amount of principal in her 56th payment is $230.19. Find the amount of interest in her 133rd payment.

  What will be your balance at that time

You put $200,000 in the bank today; if the annual interest rate paid by the bank is 20.5%, and you do not make any withdrawals for 20 years, what will be your balance at that time? (for any credit, show your work)

  An asset that pays 500 at the end of three years or b an

a wealthy uncle has offered to give you either of two assets a an asset that pays 500 at the end of three years or b an

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