1. As an option writer‚ what is the best option to take when you forecast the market to be bullish? Sketch the profit/loss diagram and determine the in the money‚ out of the money and at the money. 2. The call option of Diamond Bhd stock has a striking price of RM30 and a cost of option RM2 per share with one month expiration date. The current market price of share is RM26. If you buy 3 lots (1 lots = 100 shares) of shares‚ calculate the profits or losses at the expiration date for each of the
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Submitted to: Dr. Fariha Haseen Field visit no. 2 Date of visit: 04/11/2012 Name of the institute: icddr;b Type of the organization: Dedicated to saving lives‚ icddr‚b is an international health research organization located in Bangladesh. Through translation of research into treatment‚ training and policy advocacy icddr‚b addresses some of the most critical health concerns facing the world today. Establishment:1960-Cholera Research Laboratory established
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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
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International Capital Market (3IM) Lecture 9 Option versus Stock Investments • Could a call option strategy be preferable to a direct stock purchase? • Suppose you think a stock‚ currently selling for $100‚ will appreciate. • A 6-month call costs $10 (contract size is 100 shares). • You have $10‚000 to invest. • Strategy A: Invest entirely in stock. Buy 100 shares‚ each selling for $100. • Strategy B: Invest entirely in at-the-money call options. Buy 1‚000 calls‚ each selling for $10. (This would
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Topic: Choosing adoption instead of abortion Purpose: To inform my audience about the many options there is instead of abortion. Introduction: Abortions kills as many Americans daily as the tragedy of 9/11. Every single year‚ abortion kills the same number of Americans as have been killed on all the battlefields in all of the wars in U.S. history combined. Central Idea: There are options‚ there are millions of childless couples who do not have the honor of knowing what it feels like to
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AP Questions‚ 1980-2007 1 List of AP and AP-related questions from the past twenty-seven years. [Compiled by Steve Armstrong] (Updated‚ May 14‚ 2007) Questions labeled “AP” are Copyright © 1980-2005 College Entrance Examination Board and Educational Testing Service. All rights reserved. 1607-1763 AP 2007 Alternate The Colonial Period The French and Indian War (1754-1763) altered the relationship between Britain and its North American colonies. Assess this change with regard to TWO of the following
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Project Option 1—Individually Linear models are a part of everyday life‚ but many times they are not easily visible. They can be easily related to our life experiences. Read each of the three scenarios below to see how linear models show up in our lives and how we can use them to make decisions. Answer the related questions. 1. Marco and his two younger sisters would like to purchase a silver charm bracelet for their mother’s birthday. They went to the mall and found what they were looking for at
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CHAPTER 7: CURRENCY FUTURES AND OPTION MARKETS 7.1 FUTURE CONTRACTS 7.1.1 Definition of future contract–> contracts written requiring a standard quantity of an available currency at a fixed exchange rate and at a set delivery date. A future contract is defined as a contractual agreement to buy or sell an asset at a pre-determined price in the future. The contracts detail the quality and quantity of the underlying asset. Background of currency futures in 1972: Chicago Mercantile Exchange
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Name: Zakariya Jourane Date: 4/20/15 Graded Assignment Practice: You Do the Math Answer the following questions based on what you’ve learned about currency exchange rates. To find the amount of U.S. dollars that any given amount of currency will buy‚ simply multiply the currency by the exchange rate provided. (5 points) 1. Two college students went to Guadalajara‚ Mexico‚ on their spring breaks. One took the vacation in 2002‚ while the other went in 2006. Each student had $500 to spend. In 2002‚
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EDS 115 Cognitive Development And Education Alison Wishard Guerra Education Studies‚ UCSD Welcome: Session 1 January 7 Introductions: Who are we? How did we get here? Professor Alison Wishard Guerra Graduate Student Reader Kathline Gomes Enrollment & Wait-list Current enrollment full 10 students on waitlist Make sure to sign in today to secure your spot in the class Syllabus: Review‚ questions? Orienting Questions Course Overview: Syllabus Class attendance and participation
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