Exam 15: Stock Options

You purchased one SPX call option with a strike of 1,500.You wrote one SPX call option with the same maturity date and a strike of 1,450.At maturity,what is your payoff if the S&P 500 is at 1,475?

What is the current price per underlying share if you wish to buy a June $32.50 call option on General Electric stock?

Which one of the following options is in-the-money?

Rosalita purchased a put option with a strike price of $35.She paid a total of $140 for the contract.What is the break-even stock price?

You own 300 shares of ABC stock.Which one of the following would allow you to receive an option premium in exchange for selling your shares in ABC at the strike price?

A call option with 6 months to expiration currently sells for $2.05.A put option with the same expiration sells for $0.60.The options are European style.The risk-free rate is 3.0 percent and the strike price of both options is $50.What is the current stock price?

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?

What is the total option premium you will receive if you sell 6 October $25 calls on Texas Instruments?

Which one of the following represents an arbitrage opportunity?

Gerold purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40.At expiration,the stock price was $42.25 per share.What is his percentage return?

How much option premium per share will you receive if you sell a September $34 put on General Electric stock?

Which one of the following is defined as the price at which an option will be exercised?

You are buying the June call on General Electric stock at $0.19.What amount will you pay per share if you decide to exercise this option?

You bought a put with a strike price of $25.The current stock price is $23.What is the current payoff value of this option?

You own 4 put option contracts on ALZ stock.The contracts have a $17.50 strike price and you paid an option premium of $0.40.What is the break-even stock price?

Which one of the following is a bull call spread?

You wrote a covered call with a strike price of $45 and an option premium of $1.10.Assume the stock price is $44 a share currently and that it falls to $42 a share and remains at that price until the option expires.As a result,you will:

A 4-month call has a strike price of $20.The current underlying stock price is $21.45.What is the intrinsic value of this call?

Which one of the following correctly defines the range of time values for a put option?

A call option grants its owner which one of the following?