Suppose you short-sell 100 shares of IBM, now selling at $178 per share. a. What is your maximum possible loss?. What happens to the maximum loss if you simultaneously place a stop-buy order at $192.50? (Do not round intermediate calculations. Input the amount as a positive value.) Maximum loss $
Suppose you short-sell 100 shares of IBM, now selling at $178 per share. a. What is your maximum possible loss?. What happens to the maximum loss if you simultaneously place a stop-buy order at $192.50? (Do not round intermediate calculations. Input the amount as a positive value.) Maximum loss $
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PLEASE ANSWER QUESTION D # 1,2,3 and put whether it was a gain or loss! Thank you :)
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $44. |
Calls | Puts | |||||||||||||||||
Option and | Strike | | | |||||||||||||||
NY Close | Expiration | Price | Vol. | Last | Vol. | Last | ||||||||||||
Macrosoft | ||||||||||||||||||
Feb | 46 | 102 | 1.93 | 57 | 2.93 | |||||||||||||
Mar | 46 | 78 | 2.17 | 39 | 3.34 | |||||||||||||
May | 46 | 39 | 2.45 | 28 | 3.76 | |||||||||||||
Aug | 46 | 20 | 2.66 | 20 | 3.80 | |||||||||||||
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a. | Suppose you buy 27 contracts of the February 46 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Cost | $ |
Suppose you buy 27 contracts of the February 46 call option and Macrosoft stock is selling for $47 per share on the expiration date. |
b-1. | How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Payoff | $ |
b-2. | What if the terminal stock price is $46? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Payoff | $ |
Suppose you buy 27 contracts of the August 46 put option. |
c-1. | What is your maximum gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Maximum gain | $ |
c-2. | On the expiration date, Macrosoft is selling for $40 per share. How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Position value | $ |
c-3. | On the expiration date, Macrosoft is selling for $40 per share. What is your net gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Net gain | $ |
Suppose you sell 27 of the August 46 put contracts. |
d-1. | What is your net gain or loss if Macrosoft is selling for $41 at expiration? (A loss amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
(Click to select)GainLoss | $ |
d-2. | What is your net gain or loss if Macrosoft is selling for $48 at expiration? (A loss amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
(Click to select)GainLoss | $ |
d-3. | What is the break-even price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Break-even | $ |
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $44. |
Calls | Puts | |||||||||||||||||
Option and | Strike | | | |||||||||||||||
NY Close | Expiration | Price | Vol. | Last | Vol. | Last | ||||||||||||
Macrosoft | ||||||||||||||||||
Feb | 46 | 102 | 1.93 | 57 | 2.93 | |||||||||||||
Mar | 46 | 78 | 2.17 | 39 | 3.34 | |||||||||||||
May | 46 | 39 | 2.45 | 28 | 3.76 | |||||||||||||
Aug | 46 | 20 | 2.66 | 20 | 3.80 | |||||||||||||
|
a. | Suppose you buy 27 contracts of the February 46 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Cost | $ |
Suppose you buy 27 contracts of the February 46 call option and Macrosoft stock is selling for $47 per share on the expiration date. |
b-1. | How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Payoff | $ |
b-2. | What if the terminal stock price is $46? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Payoff | $ |
Suppose you buy 27 contracts of the August 46 put option. |
c-1. | What is your maximum gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Maximum gain | $ |
c-2. | On the expiration date, Macrosoft is selling for $40 per share. How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Position value | $ |
c-3. | On the expiration date, Macrosoft is selling for $40 per share. What is your net gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Net gain | $ |
Suppose you sell 27 of the August 46 put contracts. |
d-1. | What is your net gain or loss if Macrosoft is selling for $41 at expiration? (A loss amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
(Click to select)GainLoss | $ |
d-2. | What is your net gain or loss if Macrosoft is selling for $48 at expiration? (A loss amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
(Click to select)GainLoss | $ |
d-3. | What is the break-even price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Break-even | $ |