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Q7. An investor buys a call option that has an option premium of $5 and a strike price of $22.50. The current market price of the stock is $25.75. At expiration, the value of the stock is $23.00. The net profit/loss of the call position is closest to:
A) $4.50.
B) -$4.50.
C) -$5.00.
Q8. Which of the following statements regarding call options is most accurate? The:
A) call holder will exercise (at expiration) whenever the strike price exceeds the stock price.
B) breakeven point for the buyer is the strike price plus the option premium.
C) breakeven point for the seller is the strike price minus the option premium
Q9. Given the profit and loss diagram of two options at expiration shown below which of the following statements is most accurate?
A) The maximum profit to the short put is $5
B) The stock price would have to increase above $45 before the seller of the call starts losing money.
C) Between a stock price of $40 and $45 the long call’s profit is between $0 and $5.
Q10. Consider a call option with a strike price of $32. If the stock price at expiration is $41, the value of the call option is:
A) $9.
B) $0.
C) $41.
Q11. Mosaks, Inc., has a put option with a strike price of $105. If Mosaks stock price is $115 at expiration, the value of the put option is:
A) $0.
B) $10.
C) $105.
Q12. An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at option expiration, what is the profit and the value of the call at option expiration?
Profit Value of the Call
A) $1 $9
B) -$5 $9
C) -$5 $5
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发表于 2009-3-2 12:25
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