Whatwouldbethenetreturniftheoptioncontractwasliftedont

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Unformatted text preview: old on 11/15/2011. In hindsight, which date of the three listed in Exhibit A would be the most advantageous to buy the option contract back at? What would be the net return if the option contract was lifted on that date? 6. Suppose a put option with a 1255 strike price was purchased on 11/15/20111. What did the put option cost? What was the put option worth on 11/28/2011? Name: _________________________________ 7. Suppose a call option with a 1260 strike was purchased on 11/28/2011. Calculate the return from exercising the option on 12/9/2011. Calculate the return from selling the option on 12/9/2011. 8. Suppose a call option with a 1260 strike was purchased on 11/15/2011. Calculate the return from exercising the option on 12/9/2011. Calculate the return from selling the option on 12/9/2011. 9. Given efficient markets, what happened to the expectations of the S&P 500 index value at the third week of December 2001 between 11/15/2011 and 11/28/2011? What happened to the expectations between 11/28/2011 to 12/9/2011? Name: __________________...
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This note was uploaded on 02/06/2014 for the course ACES 444 taught by Professor Staff during the Fall '12 term at University of Illinois, Urbana Champaign.

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