User Account

All Pages

What is the total intrinsic value of these contracts

Assignment Help Accounting Basics
Reference no: EM131718904

1. You own two call option contracts on ABC stock with a strike price of $15. When you purchased the contracts the option price was $1.20 and the stock price was $15.90. What is the total intrinsic value of these options if ABC stock is currently selling for $14.50 a share?

2. You own ten put option contracts on XYZ stock with an exercise price of $25. What is the total intrinsic value of these contracts if XYZ stock is currently selling for $24.50 a share?

3. The common stock of WIN is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4 percent. What is the per share value of one call option on WIN stock with an exercise price of $55?

4. Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free assets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?

5. You wrote ten call option contracts on JIG stock with a strike price of $41 and an option price of $.60. What is your total profit on this investment if the price of JIG is $46.05 on the option expiration date?

Reference no: EM131718904

Questions Cloud

Compute annual depreciation expense : Corales Company acquires a delivery truck at a cost of $38,000. Compute annual depreciation expense for first and second years using the straight-line method
Identify a new product and discuss : Just as a product has a life cycle, customers' adoption of products occurs in stages. The adoption curve segments consumers in five stages.
Research and development is one of the greatest assets : The GoVenture experience was one that I learned a great deal from. Research and Development (R&D) is one of the greatest assets.
Describe perceived discrimination related to health care : Describe perceived discrimination related to health care as presented in Discrimination and Racial Disparities in Health: Evidence and Needed Research.
What is the total intrinsic value of these contracts : You own ten put option contracts on XYZ stock with an exercise price of $25. What is the total intrinsic value of these contracts
Focus group have an advantage over traditional survey : In which of the following situations does a focus group have an advantage over a traditional survey?
Describe the processes involved in observational learning : Identify and explain the three factors that Albert Bandura said shape human behavior - Describe the four processes involved in observational learning
Compares four processes of sculpture using specific examples : Write a 1-2 page essay that compares and contrasts the four processes of sculpture using specific examples of at least one artist associated with each method.
How does it differ from a performance guiding system : What is a decision support system? How does it differ from a performance guiding system?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Sarbanes-oxley act of 2002 has been described as the most

sarbanes-oxley act of 2002 has been described as the most far-reaching legislation affecting business since the passage

  Compute depreciation expense on the machine for the year

Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018

  Indicate the account to be debited and to be credited

During the year, Sereno Co. recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries.

  A company reports the following sales related information

A company reports the following sales related information:

  Why is budgeting important for a company

Why is budgeting important for a company? What are some reasons that a company would not prepare a budget?

  Peyton company manufactures phone

Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either. Based on the following data, assuming the number of hours is a constraint, which statement is true?

  Importance of adjusting cash flows for inflationary effects

Inflation is expected to be 5 percent per year for the next five years. The discount rate of 10 percent is composed of two elements.

  Calculate residual income for each division

The president of the company has severely criticized the manager of the Shovel Division for its dismal 3.8% ROI, Calculate residual income for each division

  Teri frazier owned three businesses and rental properties

teri frazier owned three businesses and rental properties in 2014. during the year her hair salon business experienced

  What volume level would produce the same total costs

What volume level would produce the same total costs regardless of the machine purchased? Which of the two decision alternatives would you recommend? Why

  Margo receives a gift of real estate with an adjusted basis

margo receives a gift of real estate with an adjusted basis of 175000.00 and a fair market value of 100000.00. the

  Calculate the equivalent units of production

The Fields Company has two manufacturing departments, forming and painting. Calculate the equivalent units of production for the forming department

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd