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."
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 Puts Option Strike Price Expiration Volume Last Volume Last Macrosoft 114 110 Feb 85 7.60 40 0.60 114 110 Mar 61 8.80 22 1.55 114 110 May 22 10.25 11 2.85 114 110 Aug 3 13.05 3 4.70 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 \$- Net profit \$4,700 Break-even \$105.30 For terminal stock prices above \$105.30 , the writer of the put option makes a net profit. S T S T
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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This note was uploaded on 03/12/2012 for the course FIN 610 taught by Professor Khawaja during the Spring '08 term at University of Maryland Baltimore.

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

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