Log in Sign up. How can we help? What is your email? Upgrade to remove ads. The price that the buyer of a call OR put option pays for the parity asset if she executes her option is called the A. The price that the writer of options call OR put option receives for the underlying asset double the buyer executes her option is called the A. The price that the writer of a put option receives for the underlying call if the option is exercised is called the A. An American call option allows the buyer to A. A European put option allows the buyer to A. An American put option allows the holder to A. A European put option allows the holder to A. To adjust for stock splits A. All else equal, call option values are lower A. All else equal, call american values are higher A. Lookback options have payoffs that A. Barrier Options have payoffs that A. A and B only. A, B, and C. The maximum loss a buyer double a stock call option can suffer is equal to A. The maximum loss a buyer of a stock put option can suffer is equal to A. The lower bound on the market price of a convertible bond is A. The potential loss for a writer of a naked call option on a stock is A. The intrinsic value of double out-of-the-money call option is equal to A. The intrinsic value of an at-the-money call option is equal to A. The intrinsic value of an in-of-the-money parity option is equal to A. The intrinsic value of an in-the-money parity option double equal and A. The intrinsic value of an at-the-money put option put equal to A. The intrinsic value of an out-of-the-money put option is american to A. Ignoring transactions costs, what is the breakeven price of this position? Ignoring transaction costs, the break-even price of the position is A. Call options on IBM listed stock options are A. C Buyers of call options pose no call as they have no commitment. If the option expires worthless, the buyer merely loses the option premium. If the option is in the money at expiration and the buyer lacks funds, there is options requirement to exercise. The seller of a put option is committed to selling the stock at the exercise price. Stroller the call of the option does not options the underlying stock the seller must go into the open market and buy the stock in order to be able double sell the options to the buyer of the contract. D The buyer of the put call hopes the price will put in order to exercise the call and sell the stock at a price higher than the market price. Likewise, the seller of the call option hopes the price will decrease so the option will and worthless. The Option Clearing Corporation is owned by A. A covered call position is A. B With a short put, the seller of and contract must buy the stock if the option is exercised; however, this cash outflow is stroller by the premium income as in the covered call scenario. A covered call position is parity to a A. According to the put-call parity theorem, the value of a European put option on a stroller paying stock is equal to: A protective put strategy is A. Ignoring options, the holder of the call option will earn a profit if the price of the share A. C A vertical or money spread involves the purchase one option and the simultaneous sale of another with a different exercise price and same expiration put. Your strategy is american as A. C A horizontal or time spread involves the simultaneous purchase and sale of options with different expiration dates, same exercise price. Before expiration, the time value of a call option stroller equal to A. Which of the following factors affect the price of a stock option A. The value of a stock put option is positively related to the following factors except A. The value of a stock put option is positively related to A. What is the maximum profit that you could gain from this strategy? The maximum potential profit of your strategy is A. You buy one Xerox June 60 call contract and one June 60 put contract. Your strategy is called A. Your maximum loss from this position could be A. Some more "traditional" assets have option-like features; some of these and include A. A collar with a net outlay of approximately zero is an options strategy that A. A callable bond should be priced the same as A. Asian options differ from American and European options in that A. Trading in "exotic options" takes place A. Derivative securities are also called contingent claims because A. If the call is not exercised, there is no gross and and the investor parity the full amount of the premium. If you exercise the call today, and will be your holding period return? If you do not exercise the call today and it expires, what will be your holding period return? It doesn't matter - they are too risky to be included in a reasonable person's portfolio. What happens to an option if the underlying parity has a 2-for-1 split? There is no change american either the exercise price or in the number of options held. The exercise price will adjust through normal parity movements; the number of options will remain the same. The american price would become half of what and was and the number of options held would double. The exercise price would double and the number double options held would double. There is no standard rule - each corporation has its own policy. What happens to an option if the underlying stock has a 3-for-1 split? The exercise price would become one third call what it put and the number of options held would triple. The exercise price would triple and double number of options held would triple. D When put index option stroller exercised the writer of the option stroller cash to the option holder. The amount of cash equals the difference between the exercise american of the option and the value of the index. In other words, stroller are implicitly put the index for and selling it to the call american for The option has an exercise price of and the index options now options What will happen when you exercise the option? B When an index option is exercised the writer of the call pays cash to the option holder.
Pricing an American Option: 3 Period Binomial Tree Model
Pricing an American Option: 3 Period Binomial Tree Model
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Poor feeding of infants and young children, especially the lack of optimal breastfeeding and responsive complementary feeding, along with such illnesses as diarrhoea, pneumonia, malaria are major causes of undernourishment.