A11 Intel Option Valuation

A11 Intel Option Valuation - A11 Intel Option Question 1)...

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A11 Intel Option Question 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 (V 0 – V 2) 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?
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12. What is the underlying asset value at point 5? 13. What is the underlying asset value at point 6? 14. On 1-22 you short 100 shares of Intel. What $ value did you receive? 15. You hedged on 1-22 with the most expensive 'out-of-the-money' option. Which did you use? What did it cost?
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This note was uploaded on 03/01/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.

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A11 Intel Option Valuation - A11 Intel Option Question 1)...

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