Exam 15: Stock Options

You purchased one SPX put option with a strike of 1,400.You wrote one SPX put option with the same maturity date and a strike of 1,300.At maturity,what is your total payoff if the S&P 500 index is 1,320?

A 6-month call has a strike price of $30.The underlying stock is priced at $31.80 and the option premium on the call is $2.40.What is the per share time value of the call?

A 4-month,$25 call option on Teller stock has an option premium of $0.25.The 4-month,$25 put option has an option premium of $0.80.The risk-free rate is 3 percent.The options are European-style.What is the price of Teller stock?

You purchased a put with a strike price of $37.5 and an option premium of $0.45.You simultaneously bought the stock at a price of $36 a share.What is your profit per share on these transactions if the stock price at expiration is $33.50?

Jeff paid a call premium of $0.60 when he purchased his call option with a strike price of $22.00.What is the break-even stock price?

You wrote a $40 call option on a stock that has a market price of $43.Which one of the following statements must be correct if the option expires three months from now?

Which one of the following is equal to the option premium minus the intrinsic value?

What is the total option premium you will receive if you sell 5 June $25.00 calls on Texas Instruments?

You own three SPX put options with a strike of 1,850.What is the payoff at maturity for this option contract if the S&P 500 index is 1,862?

Which one of the following represents an arbitrage opportunity?

Which one of the following terms is defined as an option that would have a positive payoff if exercised now?

A list of available option contracts and their prices for a particular security listed in order of strike price and maturity date is referred to as which one of the following?

How much will it cost to purchase 5 May $27.50 calls on Texas Instruments?

Amy bought a $50 May call and a $50 May put on the same underlying stock.This strategy is referred to as which one of the following?

A cash-settled option is defined as an option which does which one of the following?

Which one of the following statements is correct?

Tim purchased 5 put option contracts on Western Fields stock.The strike price was $35 and the option premium was $0.55.At expiration,the stock was selling for $35.75.What is the payoff on the option contracts?

You own three SPX call options with a strike of 1,800.What is the payoff at maturity for this option contract if the S&P 500 index is 1,820?

Which one of the following distinguishes an option as an American style option?

Jennifer purchased 3 put option contracts on Winslow Mfg.stock.The option premium was $0.75 and the strike price was $27.50.On the expiration date,the stock was selling for $27.75 a share.What is the total payoff on the option contracts?