(Answered) The market price of blockchain stock has been very volatile

Statistics

The market price of Blockchain stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a 1-month call option contract with a strike price of $45 and an option price of $1.94. You also purchase a 1-month put option on the stock with a strike price of $45 and an option price of $.87. What will be your total profit or loss on all the transactions related to these option positions if the stock price is $46.86 on the day the options expire?

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92881878
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

An all-equiry business has 175m shares outstanding selling

An all-equiry business has 175M shares outstanding selling for $20/share. Management believes interest rates are unreasonably low and decides to execute a leveraged recapitalization. It will raise $1B in debt and repurch ...

A fish tank in a pet store has 23 fish in it 11 are orange

A fish tank in a pet store has 23 fish in it. 11 are orange and 12 are white. Determine the probability that if we select 4 fish from the tank, at least 2 will be white.

Consider the probability distribution shown belowx 0 1 2 px

Consider the probability distribution shown below. x 0 1 2 P(x) 0.65 0.30 0.05 Compute the expected value of the distribution. Compute the standard deviation of the distribution. (Round your answer to four decimal places ...

In a recent year 8032844 male students and 9381579 female

In a recent year, 8,032,844 male students and 9,381,579 female students were enrolled as undergraduates. Receiving aid were 64.1% of the male students and 65.7% of the female students. Of those receiving aid, 41% of the ...

In a certain city a school administrator hypothesized that

In a certain city, a school administrator hypothesized that students enroll in school within 5 km from their homes. To check this claim you asked 30 student from the said city and you found that the mean distance between ...

The time required by students to complete an organic

The time required by students to complete an organic chemistry examination is normally-distributed with a mean of µ = 200 minutes and a standard deviation of σ = 20 minutes. Since this particular class is a large lecture ...

The national safety council reported that 52 of american

The National safety council reported that 52% of American turnpike drivers are men. A sample of 300 cars traveling southbound on the New Jersey Turnpike yesterday revealed that 170 were driven by men. At a 99% level of c ...

What are financial ratios commonly used in quantitative

What are financial ratios commonly used in quantitative models of debt ratings? List THREE financial ratios that represent three different factors and explain why these ratios can capture the company's ability to meet it ...

In a survey of women in a certain country ages 20-29 the

In a survey of women in a certain country? (ages 20-?29), the mean height was 65.3 inches with a standard deviation of 2.71 inches. Answer the following questions about the specified normal distribution. ?(a) What height ...

In the following five scenarios h0 alpha the obtained

In the following five scenarios, H0, α, the obtained probability (p-value), and the true status of H0 are given. Assume that our test statistic follows a standard normal distribution. Do the following: (a) State whether ...

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

Recent Questions

Ask Statistics and Probability Expert