Homework 2
1) Suppose an American put is trading for $ 16.50 and an American call is trading for $ 15,
where both options have identical terms. The underlying stock price is $ 99, and the
exercise price is $ 100. The annual risk- free interest rate is 5 p
Homework 7
Student Name:
1. The crude oil futures contract on the New York Mercantile Exchange covers 1,000
barrels of crude oil. The contract is quoted in dollars and cents per barrel (e. g., $ 27.42),
and the minimum price change is $ 0.01. The initial
Homework 4
Student Name: Ross Wempen
The homework is due on Monday, March 17th at the beginning of the class. Please show your
work and by that I mean show how you compute d1, d2, etc.
1. Calculate the price of a European put option on a non dividend payi
Homework 1
Student name:
1.(6 points) Suppose a stock is currently priced at $ 50. The margin requirement is 20 percent
on uncovered calls and 50 percent on stocks. Calculate the required margin, in dollars, for each
of the following trades:
a. Write 10 c
Chapter 7
These strategies allow to make little gain, with little gain, using spreads
Bull spread using call option:
Cash inflow: credit
Cash outflow: debit
Sell call with higher strike
One y0ou buy has higher price
Pay more for lower strike
Most you can
Chapter 8
Forward contract-an agreement between two parties that calls for delivery of an asset at a future
point in time with a price agreed upon today
Ex customized contract
Futures contract- a standardized forward contract, traded on an organized excha
Casey Papke
11/12/14
480 Trading Project (due 11/12/14)
I chose to implement a Call Bull spread as well as a Bear Put spread. I first
looked into stocks that I strongly believed would perform well with each strategy. I chose
to implement the Call Bull spr
Course Syllabus
MINNESOTA STATE UNIVERSITY MANKATO
COLLEGE OF BUSINESS
DEPARTMENT OF FINANCE
FINA 480 Options and Futures
Fall 2014, INSTRUCTOR: HYUNA PARK
SECTION 01 MONDAY and WEDNESDAY 3:30 to 4:45 PM MH208
Office Hours in MH 259
Mondays and Wednesdays
Chap 3
-Min/exercise value of American call is X price or Intrisic value
(as exp. Approaches, call price approaches intrinsic value curve)
A. the max value of an Amer. put option is the exercise price of the put option
B. the max value of a EU put option