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- Suppose that you purchased a call option on the S&P 100 Index. The option has an exercise price of 1,680, and the index is now at 1,720. What will happen when you exercise the option?A put option with an exercise price of P90 was priced at P4. At expiration, the underlying stock is selling for P95.50. If you wrote this put for P4, your profit or loss at expiration would be at what amount? please need it asap uhuSuppose that you hold a call option on S&P 500 Index ETF with an exercise price of $450 and a put option on the same underlying with an exercise price of $430. Today the price of S&P 500 Index ETF is $460. Which of the following is correct? Choose only one: The payoffs of your call option and put option, respectively, today are $10 and $30. The payoffs of your call option and put option, respectively, today are $10 and –$30. The payoffs of your call option and put option, respectively, today are $10 and $0. The payoffs of your call option and put option, respectively, today are –$10 and $30. NONE of the above. Full explain this question text typing work only
- A put option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price in the followings would maximize gain? a. MYR3.00/SGD. b. MYR2.90/SGD. c. MYR3.05/SGD. d. MYR2.95/SGD.which one is correct please confirm? Q9: An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a call option put option American option European optionwhich one is corect please confirm? Q8: An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a put option call option swap premium
- Consider a European Call Option with a strike of 82. The current price of the underlying asset is 80, and the time to expiry is 5 months. The current market price of the option is 6.22. The risk-free rate is 4.1%. (a) Find the implied volatility of the underlying. Provide all necessary calculations.Consider an European put option. Suppose Exercise price=$60. Expiration date=50 (and we assume 360 days of conversion). If risk-free rate is 5%, and the underlying stock price is $100, what is the lower boundary for this European put option?A put option with an exercise price of P90 was priced at P4. At expiration, the underlying stock is selling for P95.50. If you wrote this put for P4, your profit or loss at expiration would be at what amount?
- A call option has a strike price of MYR3.00/SGD. If the option is exercised before maturity, what price in the followings would maximize gain? a. MYR3.00/SGD. b. MYR2.90/SGD. c. MYR3.05/SGD. d. MYR2.95/SGD.Consider a portfolio that consists of the following four derivatives: 1) a put option written(sold) with strike price K − 5, 2) a call option purchased with strike price K − 5, 3) a call option written(sold) with strike price K + 5, and 4) a put option purchased at strike price K + 5. All options are European.The risk-free rate is rf , the time to expiration is T, the initial stock price is S0, and the stock price atmaturity is ST . What are the payoffs at expiration of this portfolio? What must the price of this portfoliobe?H2. Using the Black-Scholes model (BSOPM), compute the standard deviation that is implied by the following call option data as: the time to the option's maturity is 0.25 years, the price of the underlying option asset is RM30, the continuously compounded risk-free interest rate is 0.12. the exercise or striking price is RM30, and the cost or premium of the call is RM1.90.