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1. PA stock is selling for $36.60 a share. One $35 call is valued at $1.92 and one $35 put is valued at $.49. What is the value of five call option contracts?

2. A 1-month $25 call option on BRU stock is prices at $3.22. What is the estimated value of one share of stock?

3. A 1-month $30 put option is priced at $2.05. What is the estimated value of one share of stock?

4. HT stock is selling for $23.16 a share, the $25 puts are prices at $2.05, and the $25 calls are priced at $.36. How much will you receive if you write thirty $25 put option contracts?

5. A stock is priced at $26.50 and the risk-free rate of return is 3.5 percent annually. Assume a 1-year $20 call will finish in the money. What is the current value of the call option?

 

 

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