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
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.
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
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%
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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