A10 Option Valuation Question

# A10 Option Valuation Question - 1 Base your answers on the...

This preview shows pages 1–3. Sign up to view the full content.

1) Base your answers on the graph and data on the next page for the listed option contracts. 1. The above graph is for what kind of option? 2. How do you determine the option Type? Consider the appropriate option with a 15 Strike price and answer the following: 3. Determine the underlying asset price for the option with value V 0 4. Curve with label 7 is for what date? 5. For this option determine ( V0 V2) and name this value 6. If possible determine (V 1 -V 2 ) for this option. 7. For this option determine (V 3 -V 4 ). 8. Determine V 2 and name this value. 9. Explain the difference between V 0 and V 3 . 10. Why is V 3 greater than V 0 ? 11. Curve with label 8 is for what date? 12. What is the underlying asset value at point 5? 13. What is the underlying asset value at point 6? V 0 0 V 4 15 1 V 1 V 3 9 4 5 6 3 2 Value Asset Price & Strike Price 7 8 V 2

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
INTC (Intel)Date 1-22-2008 At 10:51AM ET: 18.42 0.58 (3.05%) Options Expiring Fri, Apr 18, 2008 INQDU.X Strike Price Puts Symbol Last Change Bid Ask Volume Open Int Symbol Last Change Bid Ask Volume Open Int NQDV.X 5.95 0.66 6.10 6.25 2 1,447 12.50 NQPV.X 0.14 0.06 0.12 0.13 315 546 NQDC.X 3.85 0.45 3.90 4.00 131 1,335 15.00 NQPC.X 0.37 0.08 0.37 0.39 530 1,716 NQDW.X 2.07 0.33 2.09 2.12 613 2,453 17.50 NQPW.X 1.05 0.20 1.02 1.04 2,048 17,620 NQDD.X 0.91 0.19 0.91 0.92 1,752 14,118 20.00 NQPD.X 2.33 0.28 2.39 2.42 451 18,891 NQDX.X 0.36 0.06 0.33 0.34 721 23,580 22.50 NQPX.X 4.25 0.40 4.30 4.40 39 26,456 INQDE.X 0.12 0.06 0.12 0.14 515 51,508 25.00 INQPE.X 6.65 0.50
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern