1
answer
0
watching
119
views
rubyyak737Lv1
29 Sep 2019
Looking at the following options table:
British Pound Option Prices (U.S. CENTS per Pound, 62,500 pounds per contract) US cents/£ Call Call Call Put Put Put Spot Rate Strike Price May June July May June July 144.8 144 0.88 1.42 1.44 0.52 1.06 ----- 144.8 145 0.42 1.02 ----- ----- ----- ----- 144.8 146
0.2 0.68 0.72 1.75 2.32 -----
QUESTION A: Give me one example of an option that is out of the money? Be specific as far as month and strike price. Explain your answer? QUESTION B: Give me one example of an option that is in the money? Be specific as far as month and strike price. Explain your answer? QUESTION C: Which, if any, option is at the money? Explain your answer. QUESTION D: Looking at the July 144 CALL option, break down the option's premium into its Intrinsic Value and Time Premium components Show your calculations. QUESTION E: Looking at the June 146 PUT option, break down the options premium into its Intrinsic Value and Time Premium components Show your calculations. QUESTION F : If you purchase two (2) June 145.0 call options what will be the total amount of your premium that you need to pay? QUESTION G: Referring to QUESTION F, when do you pay the option premium, on the settlement date or on the date that you purchase the options? QUESTION H: Today you purchase three (3) June 144.0 Puts. On settlement date the spot rate = 142.5 cents per pound, what is your net profit/loss? Show your calculations. QUESTION H: Today you purchase two (2) June 144.0 Calls. On settlement date the spot rate = 143.5 cents per pound, what is your net profit/loss?
Looking at the following options table:
British Pound Option Prices (U.S. CENTS per Pound, 62,500 pounds per contract) | ||||||||
US cents/£ | Call | Call | Call | Put | Put | Put | ||
Spot Rate | Strike Price | May | June | July | May | June | July | |
144.8 | 144 | 0.88 | 1.42 | 1.44 | 0.52 | 1.06 | ----- | |
144.8 | 145 | 0.42 | 1.02 | ----- | ----- | ----- | ----- | |
144.8 | 146 | 0.2 | 0.68 | 0.72 | 1.75 | 2.32 | ----- |
QUESTION A: | Give me one example of an option that is out of the money? Be specific as far as month and strike price. Explain your answer? | |||||||
QUESTION B: | Give me one example of an option that is in the money? Be specific as far as month and strike price. Explain your answer? | |||||||
QUESTION C: | Which, if any, option is at the money? Explain your answer. | |||||||
QUESTION D: | Looking at the July 144 CALL option, break down the option's premium into its Intrinsic Value and Time Premium components | |||||||
Show your calculations. | ||||||||
QUESTION E: | Looking at the June 146 PUT option, break down the options premium into its Intrinsic Value and Time Premium components | |||||||
Show your calculations. | ||||||||
QUESTION F : | If you purchase two (2) June 145.0 call options what will be the total amount of your premium that you need to pay? | |||||||
QUESTION G: | Referring to QUESTION F, when do you pay the option premium, on the settlement date or on the date that you purchase the options? | |||||||
QUESTION H: | Today you purchase three (3) June 144.0 Puts. On settlement date the spot rate = 142.5 cents per pound, what is your net profit/loss? | |||||||
Show your calculations. | ||||||||
QUESTION H: | Today you purchase two (2) June 144.0 Calls. On settlement date the spot rate = 143.5 cents per pound, what is your net profit/loss? |
Casey DurganLv2
29 Sep 2019