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1. You bought a call option with a strike price of $35. What is your total payoff on this option contract if the underlying stock is selling for $36.70 on the option expiration date?

2. You purchased a call option with a $22.50 strike price and a call premium of $0.40. On the expiration date, the underlying stock was priced at $23.40 per share. What is the percentage return on your investment?

3. Jasmine purchased one call option with a strike price of $35 when the call premium was $1.10. What is the break-even stock price?

4. A 4-month call has a strike price of $20. The current underlying stock price is $21.45. What is the intrinsic value of this call?

5. A stock is valued at $25.75 a share. A European 6-month call option has a strike price of $25 and an option premium of $1.50. The market rate is 9.5 percent and the risk-free rate is 2.5 percent. What is the price of a European 6-month put option with a $25 strike price?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91370543

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