65.
You purchased one AT&T March 50 put and sold one AT&T April 50 put. Your strategy is
known as
66.
Before expiration, the time value of a call option is equal to
67.
Which of the following factors affect the price of a stock option?
68.
All of the following factors affect the price of a stock option except
69.
The value of a stock put option is positively related to the following factors except
70.
The value of a stock put option is positively related to
71.
You purchase one September 50 put contract for a put premium of $2. What is the
maximum profit that you could gain from this strategy?
72.
You purchase one June 70 put contract for a put premium of $4. What is the maximum
profit that you could gain from this strategy?
73.
You purchase one IBM March 200 put contract for a put premium of $6. What is the
maximum profit that you could gain from this strategy?
74.
The following price quotations were taken from the
Wall
Street
Journal
.
The premium on one February 90 call contract is
75.
The following price quotations on WFM were taken from the
Wall
Street
Journal
.
The premium on one WFM February 90 call contract is
76.
The following price quotations on WFM were taken from the
Wall
Street
Journal.
The premium on one WFM February 85 call contract is
77.
Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105
call contract at $2.
The maximum potential profit of your strategy is ________ if both options are exercised.
78.
Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105
call contract at $2.
If, at expiration, the price of a share of WFM stock is $103, your profit would be
79.
Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105
call contract at $2.
The maximum loss you could suffer from your strategy is
80.
Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105
call contract at $2.
What is the lowest stock price at which you can break even?
81.
You buy one Home Depot June 60 call contract and one June 60 put contract. The call
premium is $5 and the put premium is $3.
Your strategy is called
82.
You buy one Home Depot June 60 call contract and one June 60 put contract. The call
premium is $5 and the put premium is $3.
Your maximum loss from this position could be
83.
You buy one Home Depot June 60 call contract and one June 60 put contract. The call
premium is $5 and the put premium is $3.
At expiration, you break even if the stock price is equal to
84.
The put-call parity theorem
85.
Some more “traditional” assets have optionlike features; some of these instruments
include
86.
Financial engineering
87.
A collar with a net outlay of approximately zero is an options strategy that
88.
Top Flight Stock currently sells for $53. A one-year call option with strike price of $58 sells
for $10, and the risk-free interest rate is 5.5%. What is the price of a one-year put with
strike price of $58?