"Put option" Essays and Research Papers

Sort By:
Satisfactory Essays
Good Essays
Better Essays
Powerful Essays
Best Essays
Page 2 of 50 - About 500 Essays
  • Satisfactory Essays

    Call Option and Stock

    • 587 Words
    • 3 Pages

    is $50. The stock pays a dividend of $5 in 3 months. A 6-month European put option on the stock has a strike price of $48 and a premium of $4.38. The continuously compounded interest rate is 8%. Calculate the premium for a 6-month European call option on the stock with a strike price of $48. *  A 1.02  *  B 3.36  *  C 3.46  *  D 4.38  *  E 5.40 2 1. An "exchange call option" gives the owner of the option the right to give up one share of Stock A in exchange for receiving one

    Premium Call option Put option Option

    • 587 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Option and Dividend Yield

    • 962 Words
    • 4 Pages

    Chapter 15 Quiz 15.1) A portfolio is currently worth $10 million and has a beta of 1.0. An index is currently standing at 800. Explain how a put option with a strike price of 700 can be used to provide portfolio insurance. Index goes down to 700 10*(800/700)= 8.75 million Buying put options= 10‚000‚000/800= 12‚500 If you buy the options at 800‚ the value will be 12‚500 times the index with a strike price of 700 therefore providing protection against a drop in the value of the portfolio below

    Premium Option Call option Put option

    • 962 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Call Option and Price

    • 438 Words
    • 2 Pages

    Question 1: Consider an option on dividend-paying stock when stock price $30‚ the exercise price is $29‚ the risk-free interest rate is 5% p.a.‚ the volatility is 25%p.a. and time to maturity is 4 months. Assume that the stock is due to go ex-dividend in 1.5 months. The expected dividend is 50cents. a. b. c. what is the price of the option if it is a European call? What is the price of the option if it is a European put? Use the results in the Appendix to this chapter to determine whether there

    Premium Call option Put option Option

    • 438 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Real Options

    • 567 Words
    • 3 Pages

    Real Option Memo To: Dave Jacobs From: James Jones Date: November 26‚ 2012 Re: College Education Intro and type of flexibility with this option The option I’m going to discuss in this memo is whether I should continue on with my college career year after year‚ or just to abandon receiving a higher education and make my part time job a full time job. From the 7S framework‚ my real option would be the Disinvest/Shrink then the scope down option (abandon). Sources of uncertainty There

    Free Full-time Part-time Option

    • 567 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    types of option contract‚ whether in exercising ability or difference in values ‚ And two types will be discussing in this presentation. Firstly‚ the American style of option contract‚ gives you the flexibility in using it and doing the transaction at any point of time up to the expiration day. Secondly‚ the European style of option contract‚ allows the investor to use the option only during the expiration day. And what really important is that all the options gives the investor the option but not

    Premium Call option Put option Option

    • 364 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    SHARE OPTIONS IN THE STOCKMARKET The principal business of stock exchanges is trade in physical shares‚ but they also trade in share options in the major stocks. An option gives the holder the right to buy or sell a share at a predetermined price at some point in the future – for example‚ the right to buy shares in three months’ time at a price set today. An option which gives the buyer the right to buy a share is a “call” option. An option which gives the buyer the right to sell a share is a

    Free Call option Strike price Derivative

    • 518 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chapter 1 to 3 Chapter 9 Revision on Financial Derivatives & Properties of Options Prices • What are financial derivatives? What are their roles in finance? • Give examples of derivatives and draw their profit diagrams. • Name some financial derivatives that are traded in Bursa Malaysia. 2 • Definition  A financial instrument that has a value determined by the price of something else Risk management. Derivatives are tools for companies and other users to reduce risks Speculation

    Premium Call option Put option Option

    • 2764 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    compounded. A European-style call option is written on this stock with a $12 strike price and 8 months to expiry. a) b) c) d) Use the delta-hedging approach to price this call option. Use the risk-neutral valuation method to price this call option. Work recursively back through the Binomial tree‚ calculating the call option price at each node. Check that the option price at each node matches that calculated in part a. Again use the risk-neutral method to value this call option‚ but this time do not work

    Premium Option Strike price Call option

    • 1033 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    standing at 800. Explain how a put option on the S&P 100 with a strike price of 700 can be used to provide portfolio insurance. 2. “Once we know how to value options on a stock paying a dividend yield‚ we know how to value options on stock indices and currencies.” Explain this statement. 3. Explain how corporations can use range-forward contracts to hedge their foreign exchange risk. 4. Calculate the value of a three-month at-the-money European call option on a stock index when the index

    Premium Call option Put option Option

    • 372 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Stock option case study

    • 658 Words
    • 3 Pages

    Case Study – “Accounting for Stock Options” Congratulations‚ your firm has just won a new engagement for the December 31‚ 2012 audit of Stock It (the Company). You are the lead senior on the engagement and thus were delegated the task of auditing the client’s equity balances. In review‚ you noted that the client has a significant amount of stock options issued to their employees‚ a means that many start-up companies use to compensate employees and entice them to put in the effort to make the company

    Premium Call option Put option Option

    • 658 Words
    • 3 Pages
    Satisfactory Essays
Page 1 2 3 4 5 6 7 8 9 50