10-26-2011 Sample full Intel Put Option Question

10-26-2011 Sample full Intel Put Option Question - Sample...

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Sample Option Question 1. The above graph is for what kind of option? How do you tell? Consider the appropriate data below and answer the following questions: For a strike price of 25 2. The underlying asset price given by pt 3 is? ________ 3. The underlying asset price given by pt 5 is? ________ 4. Date of curve with label 8 is? ________ _ 5. Date of curve with label 9 is?________ _ 6. V 7 = _____ and is named? ________ 7. (V 2 – V 7 ) = _____ and is named _________ 8. (4pts) Assume you become skeptical of Intel’s value and on Oct 13 you shorted 500 shares of INTC. How much did you receive? ____________________. At that moment, the net value of your position is? ___________. How do you potentially gain from this position? 9. (4pts) However, you are not a confident skeptic so on the same day you shorted INTC you hedged your position using the cheapest in the money option. Which option did you buy and what did it cost you? 10.
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This note was uploaded on 02/22/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.

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10-26-2011 Sample full Intel Put Option Question - Sample...

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