sample_excel_sol_chapter-22

sample_excel_sol_chapter-22 - Chapter 22 Question 1 Input...

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Chapter 22 Question 1 Input Area: T-bills 5.5% Share price $70 Price won't drop below: $65 a. Exercise price on a call: $60 b. Exercise price on a call: $50 c. Exercise price on a put: $60 Output Area: a. Call value $13.13 Intrinsic value $10.00 b. Call value $22.61 Intrinsic value $20.00 c. Put value $- There is no possiblity that the put will finish in the money. Intrinsic value = $0.
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Chapter 22 Odd Problems Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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Chapter 22 Question 5 Input Area: Low stock price $50 High stock price $70 T-bills 5% a. Current price $60 Exercise price $35 b. Exercise price $60 Output Area: a. $26.67 b. $6.19 C 0 C 0
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Chapter 22 Question 3 Input Area: Calls Option Strike Price Expiration Volume Last Macrosoft 114 110 Feb 85 7.60 114 110 Mar 61 8.80 114 110 May 22 10.25 114 110 Aug 3 13.05 a. Contracts bought 10 Feb call $110 Aug put $110 b. Share price $140 Share price $125 c. Contracts bought 10 Share price $104 d. Contracts sold 10 Share price $103 Share price $132 Output Area: a. Price $7,600.00 b. $30,000 $15,000 c. Initial cost $4,700 Maximum gain $105,300 Terminal value $6,000 Net gain $1,300 d. Option payoff $(7.00) Net profit $(2,300) Option payoff $- S T S T
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Net profit $4,700 Break-even $105.30 For terminal stock prices above $105.30 , the writer of net profit.
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Puts Volume Last 40 0.60 22 1.55 11 2.85 3 4.70
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f the put option makes a
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Chapter 22 Question 7 Input Area: Expiration (months) 6 Exercise price $60 Put option $4.89 Current stock price $57 Risk-free rate 3.6% Output Area: Call price $2.96
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Chapter 22 Question 9 Input Area: Exercise price $45 Expiration (months) 2 Put option $2.65 Call option $5.32 Current stock price $47.30 Output Area: Risk-free rate 4.95%
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Chapter 22 Question 11 Input Area: Current stock price
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sample_excel_sol_chapter-22 - Chapter 22 Question 1 Input...

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