17. The aftercited compensations are conducive control flatter and place options on a hoard compensationd at $50. The risk-free scold is 6 percent and the contradiction is 0.35. The March options own 90 days cherishing and the June options own 180 days cherishing. The Black-Scholes copy was used to allure the compensations. Flatters Places Strike March June March June 45 6.84 8.41 1.18 2.09 50 3.82 5.58 3.08 4.13 55 1.89 3.54 6.08 6.93 Use this counsel to vindication inquirys 1 through 20. Assume that each affair consists of individual narrow (control 100 shares) cosmical inadequately involved. Control inquirys 15 through 17, opine a bull coin open using the March 45/50 flatters. What is the acme waste on the open? a. $500 c. $198 d. $802 e. nindividual of the aloft

 

18. Control inquirys 18 and 19, prepredeem an investor expects the hoard compensation to survive at encircling $50 and decides to enact a butterfly open using the June flatters. Flatters Places Strike March June March June 45 6.84 8.41 1.18 2.09 50 3.82 5.58 3.08 4.13 55 1.89 3.54 6.08 6.93 What gain be the require of the butterfly open? a. $1,195 b. $637 c. $79 d. $1,045 e. nindividual of the aloft

 

19. Control inquirys 18 and 19, prepredeem an investor expects the hoard compensation to survive at encircling $50 and decides to enact a butterfly open using the June flatters. Flatters Places Strike March June March June 45 6.84 8.41 1.18 2.09 50 3.82 5.58 3.08 4.13 55 1.89 3.54 6.08 6.93 What gain be the emolument if the hoard compensation at dolefulness is $52.50? a. $171 b. $1,421 c. $1.037 d. $421 e. nindividual of the aloft

 

20. The aftercited compensations are conducive control flatter and place options on a hoard compensationd at $50. The risk-free scold is 6 percent and the contradiction is 0.35. The March options own 90 days cherishing and the June options own 180 days cherishing. The Black-Scholes copy was used to allure the compensations. Flatters Places Strike March June March June 45 6.84 8.41 1.18 2.09 50 3.82 5.58 3.08 4.13 55 1.89 3.54 6.08 6.93 This inquiry is encircling a hanker punch open using the June 50 and 55 options. What is the require of the punch open? a. $500 b. $2,018 c. $76 d. $484 e. nindividual of the aloft

 

21. What is the emolument if the hoard compensation at dolefulness is $52.50? a. $16 b. $500 c. -$234 d. $250 e. nindividual of the aloft

 

22. What is the cajole offer appraise of the punch open? a. $9.84 b. $5.00 c. $16.00 d. $1.84 e. nindividual of the aloft

 

23. Which of the aftercited strategies does not attributable attributable attributable emolument in a rising dispense? a. place bull open b. hanker straddle c. collar d. flatter bull open e. nindividual of the aloft

 

24 Which of the aftercited affairs can own an infinite waste? a. hanker straddle b. enlist open c. butterfly open d. counterposition punch open e. nindividual of the aloft

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