Reading 72: Risk Management Applications of Option Strat price, option

yanghon

 

Q19. A call option has a strike price of $120, and the stock price is $105 at expiration. The expiration day value of the call option is:

A)   $105.

B)   $15.

C)   $0.

 

Q20. A put option has a strike price of $65, and the stock price is $39 at expiration. The expiration day value of the put option is:

A)   $65.

B)   $26.

C)   $0.

 

Q21. A call option has a strike price of $35 and the stock price is $47 at expiration. What is the expiration day value of the call option?

A)   $0.

B)   $12.

C)   $35.

 

[此贴子已经被作者于2009-3-2 12:31:48编辑过]

yanghon

Q19. A call option has a strike price of $120, and the stock price is $105 at expiration. The expiration day value of the call option is:fficeffice" />

A)   $105.

B)   $15.

C)   $0.

Correct answer is C)

A call option has an expiration day value of MAX (0, S-X). Here, X is $120 and S is $105. Because the call option is out of the money at expiration, its value is zero.

 

Q20. A put option has a strike price of $65, and the stock price is $39 at expiration. The expiration day value of the put option is:

A)   $65.

B)   $26.

C)   $0.

Correct answer is B)

A put option has an expiration day value of MAX (0, X-S). Here, X is $65 and S is $39.

 

Q21. A call option has a strike price of $35 and the stock price is $47 at expiration. What is the expiration day value of the call option?

A)   $0.

B)   $12.

C)   $35.

Correct answer is B)

A call option has an expiration day value of MAX (0, S ? X). Here, X is $35 and S is $47.

erpang8888

a

duo1115

see

newstar0001

see

 

dullmul

thx

sorrybabyfish

a

hjl2000

d

sallmanns

t

itispig

thanks