Use the following quotes for Target stock options:CallsLast29.00y14.259.655.102.85TickerTGT 3/18/22 C200TGT 3/18/22 C210TGT 3/18/22 C220TGT 3/18/22 C230TGT 3/18/22 C240TickerTGT 3/18/22 P200TGT 3/18/22 P210TGT 3/18/22 P220TGT 3/18/22 P230TGT 3/18/22 P240Source: Bloomberg Finance L.P.Total costBid20.1513.45$8.354.852.70Bid5.008.3012.8519.1526.05Ask21.6013.808.655.152.95249Ask5.158.5013.4519.8027.80PutsLast4.958.3512.5518.4925.83IVM Volume35.0732.5831.3431.0731.08IVM34.1632.3531.3430.0628.4416203516If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how muchwould this cost you?Note: Do not round intermediate calculations. Round your answer to the nearest whole number.Volume1838695

Number of shares purchased = 3,000Strike price = $210Ask price = $8.50

Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Ask 21.60 13.80 8.65 5.15 2.95 Bid 5.00 8.30 12.85 19.15 19.80 26.05 27.80 Ask 5.15 8.50 13.45 Calls Last 29.08y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5 If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how much would this cost you? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Ask 21.60 13.80 8.65 5.15 2.95 Bid 5.00 8.30 12.85 19.15 19.80 26.05 27.80 Ask 5.15 8.50 13.45 Calls Last 29.08y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5 If you wanted to purchase the right to sell 3,000 shares of Target stock in March 2022 at a strike price of $210 per share, how much would this cost you? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid Ask 20.15 21.60 13.45 13.80 8.35 8.65 4.85 5.15 2.70 2.95 Total cost Bid Ask 5.00 5.15 8.30 8.50 12.85 13.45 19.15 19.80 26.05 27.80 Calls Last 29.00y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5 If you wanted to purchase the right to sell 4,000 shares of Target stock in March 2022 at a strike price of $210 per share, how much would this cost you? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
Use the following quotes for Target stock options: Ticker Bid TGT 3/18/22 C200 20.15 TGT 3/18/22 C210 13.45 TGT 3/18/22 C220 8.35 TGT 3/18/22 C230 4.85 TGT 3/18/22 C240 2.70 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 5.00 Ask 5.15 8.30 8.50 12.85 13.45 19.15 19.80 26.05 27.80 Ask 21.60 13.80 8.65 5.15 2.95 Calls IVM Last 29.00y 35.07 14.25 32.58 9.65 31.34 5.10 31.07 2.85 31.08 Return on investment at $205 Return on investment at $255 Puts Last IVM 34.16 32.35 12.55 31.34 18.49 30.06 25.83 28.44 4.95 8.35 Volume 16 20 35 16 Assume you purchased the right to sell 2,000 shares of Target stock in March 2022 at a strike price of $230 per share. Suppose Target stock sells for $205 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $255 per share (think about it)? Assume your holding period for this…
Assume the stock’s future prices of stock A and stock B as the following distribution State Future Price Stock A Future price Stock B 1 $10 $7 2 $8 $9 If the time 1 price of stock A is $6, and the time 1 price of stock B is $5. And C1 represents the time 1 price of claim on state 1, C2 represents the time 1 price of claim on state 2 Use the information about stock prices and payoffs to Find the time 1 price C1 and C2. Find the risk–free rate of return, obtained in this market.
Of the following four call options that can be purchased on a stock, which would you expect to have the lowest price? A. September call; $85 exercise price B. September call; $80 exercise price C. December call; $85 exercise price D. December call; $80 exercise price
Assume the stock's future prices of stock A and stock B as following distribution State Future Price Stock A Future price Stock B $10 $7 $8 $9 If the time 1 price of stock A is $6, and the time 1 price of stock B is $5. And C and C2 represents the time 1 price of ciaim on state 1, C, represents the time 1 prices of unit claims on states 1 and 2. Use the information about stock prices and payoffs to • Find the time 1 prices C, and C2. • Find the risk - free rate of return, obtained in this market
19. Which is the correct bar chart if the stock's opening price is P15, closing price is P25, highest price is P30, and lowest price is P10? a. d.
Consider two put options on different stocks. The table below reports the relevant information for both options: Put optionTime to maturityCurrent price of underlying stockStrike priceVolatility ( )X1 year$27$1830%Y1 year$25$2030%All else equal, which put option has a lower premium? A.Put option Y B.Put option X
A stock with a current market price of $50 has an associated put option priced at $6.5. This put option has an exercise price of $48. The put option has an intrinsic value of ______ and a time value of ______. Select one: a. $0; $4.5 b. -$2; $8.5 c. $2; $4.5 d. $2; $6.5 e. $0; $6.5
1. Consider the following set of orders for the VOD stock: Time Trader Order Side Size Price Sell Buy Buy Sell Buy Sll Sell 10:00 АВС DEF GHI JKL MNO PQR STU VWX YZ 4 10:05 10:08 10:09 10:10 10:15 10:18 10:20 10:30 20 21 20 22 18 Market 19 Market 21 7 Buy Sll 6. Assume that the above orders are sent to a single-price call auction. Consider sending the same set of orders to a continuous two-sided auction, Apply price-time priority and the discriminatory pricing rule and list the first 3 trades. Compute the trading surplus for these 3 trades. Compare and contrast single-price auctions and continuous two-sided auctions.
Consider the following Options Kuala Lumpur Index (OKLI) traded at BMDB: Option Type Option Price 33 20 12 18 Call Call ii. Put Put Exercise Price 750 780 Required: Illustrate graphically with relevant labels and working for following synthetic strategies: i. Long straddle Long strangle 750 780 +
Consider the following options on stock X: Option Delta Gamma Vega A 0.5 2.2 1.8 В 0.8 0.6 0.2 C -0.40 1.3 0.7 D 0.70 1.8 1.4 A bank is long 1000 units of Option A, short 200 units of Option B, short 2000 units of Option C, and short 500 units of Option D. The following two options are also available in the market: Option Delta Gamma Vega E 0.6 1.5 0.8 F 0.1 0.5 0.6 a) Design one strategy that would make the bank's portfolio delta neutral. b) Design one strategy that would make the bank's portfolio delta and gamma neutral. Explain why this strategy provides a better hedge with respect to changes in the price of stock X than the strategy you constructed in part (a). c) Design one strategy that would make the bank's portfolio delta, gamma, and vega neutral.
Assume a stock with an option with the information as follows. • Stock purchased price was $113.• Call option on the stock was purchased at $4. • Call option has strike price at $115.• the stock price is $117on expiration date Please explain the Call Options Payoff Diagrams below, why it plot like this (please explain step by step) . Thank you for your answering

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