Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

The exercise price on one of ORNE Corporation's call options is $35 and the price of the underlying stock is $34. The option will expire in 55 days. The option is currently selling for $0.25.

a. find out the option's exercise value?

b. find out the value of the premium over and above the exercise value? What does this value represent?

c. Is this an out-of-the money option, at-the-money, or in-the-money? Why?

d. What will happen to the value of the option if the underlying stock price changes to $34.50? Why?

e. If this were a put option, would it have a greater or lesser value than the call option? Why?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940379

Have any Question? 


Related Questions in Basic Finance

1 demonstrate your understanding of the relationship

1. Demonstrate your understanding of the relationship between logistical capabilities and competencies by tracing the evolution of logistical work to universal competencies. Does this logic have any practical application ...

1 in what ways is the study of research methods valuable to

1. In what ways is the study of research methods valuable to students such as you? 2. Discuss the importance of systematic empiricism, public verification, and solvability to the scientific method. In what ways does pseu ...

Briefly describe each of the following disbursement

Briefly describe each of the following disbursement products/methods: a. Zero-balance accounts (ZBAs) b. Controlled disbursement c. Positive pay How does a ZBA relate to the firm's target cash balance?

What factors would determine whether a particular strategy

What factors would determine whether a particular strategy is a hedge or a speculative strategy? How are spread and arbitrage strategies forms of speculation? How can they be interpreted as hedges? What are the differenc ...

1 define amortization list the five types discussed2 why do

1. Define amortization. List the five types discussed. 2. Why do the monthly payments in the beginning months of a CPM loan contain a higher proportion of interest than principal repayment?

Examine the following case Examine the following case study:

Examine the following case study: http://www.finance.nsw.gov.au/ict/resources/nsw-government-digital-information-security-policy 1. Use a diagram (produced by the means of using Rationale, Visio or any other relevant sof ...

Assignment pricing decisionsthis assignment will assess

Assignment: Pricing Decisions This assignment will assess competency 4. Develop a professional sales training and motivation program for an organization. Directions View the Chapter 19 - Pricing Concepts video. http://ww ...

Financial news is everywhere in the popular press and media

Financial news is everywhere in the popular press and media. How do you interpret the following examples of financial news related to the concepts in this chapter? Bernie Madoff 's hedge fund, Ascot Partners, failed in 2 ...

Assignment lasa standards appraisalin this assignment you

Assignment: LASA: Standards Appraisal In this assignment, you will research current financial accounting standards, both U.S. and international, on goodwill impairment. You will write a report that analyzes the final dec ...

You learn that your inheritance will allow you to receive

You learn that your inheritance will allow you to receive the amount of $5800 at the end of each year for a total of 12 consecutive years. However, because of your young age, these amounts will not begin until the end of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen