SlideShare una empresa de Scribd logo
1 de 1
Descargar para leer sin conexión
1. Touron Inc. recently closed at $11.80 per share. The following chart lists some of the option
prices for Touron Inc.: (Assume that the options are American) Assume a monthly interest rate of
1% and that the December, January, and Mareh contracts have 2,3 and 5 months to expiration,
respectively. a) Find the intrinsic value of the Dee 10 call. b) Find the time value of the Dee 10 call.
c) Find the minimum value of the Dee 10 call. d) Find the maximum price that the March 10 call
can sell for. c) Find the maximum price that the March 15 put can sell for f) Find the intrinsic value
of the of the Dee 10 put. g) Find the time value of the Dec 15 put. h) Find one option that is
overpriced, (There may be several). Why it is overpriced. Explain. i) Find one option that is
underpriced, (There may be several). Why it is underpriced. Explain. j) Find the lower bound of the
Jan 10 call. k) If the Jan 10 call was selling for $1.30, how would you take advantage of this price?

Más contenido relacionado

Más de amir421526

1 The proton motive force PMF generated by the electron t.pdf
1 The proton motive force PMF generated by the electron t.pdf1 The proton motive force PMF generated by the electron t.pdf
1 The proton motive force PMF generated by the electron t.pdf
amir421526
 
1 The Great Wars In a land far far away there lived a mig.pdf
1 The Great Wars In a land far far away there lived a mig.pdf1 The Great Wars In a land far far away there lived a mig.pdf
1 The Great Wars In a land far far away there lived a mig.pdf
amir421526
 
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
amir421526
 
1 The cell cycle Mitosis At the beginning of mitosis the.pdf
1 The cell cycle  Mitosis At the beginning of mitosis the.pdf1 The cell cycle  Mitosis At the beginning of mitosis the.pdf
1 The cell cycle Mitosis At the beginning of mitosis the.pdf
amir421526
 

Más de amir421526 (20)

1 The Successiveapproximation converter has a longer conve.pdf
1 The Successiveapproximation converter has a longer conve.pdf1 The Successiveapproximation converter has a longer conve.pdf
1 The Successiveapproximation converter has a longer conve.pdf
 
1 The skin is made up of the and the 2 convey sensations w.pdf
1 The skin is made up of the and the 2 convey sensations w.pdf1 The skin is made up of the and the 2 convey sensations w.pdf
1 The skin is made up of the and the 2 convey sensations w.pdf
 
1 The proton motive force PMF generated by the electron t.pdf
1 The proton motive force PMF generated by the electron t.pdf1 The proton motive force PMF generated by the electron t.pdf
1 The proton motive force PMF generated by the electron t.pdf
 
1 The prebabiity that both bults are red is 2 The erobasic.pdf
1 The prebabiity that both bults are red is 2 The erobasic.pdf1 The prebabiity that both bults are red is 2 The erobasic.pdf
1 The prebabiity that both bults are red is 2 The erobasic.pdf
 
1 The production possibilities frontier I Suppose Japan pro.pdf
1 The production possibilities frontier I Suppose Japan pro.pdf1 The production possibilities frontier I Suppose Japan pro.pdf
1 The production possibilities frontier I Suppose Japan pro.pdf
 
1 The patient a 12yearold boy shows several areas of to.pdf
1 The patient a 12yearold boy shows several areas of to.pdf1 The patient a 12yearold boy shows several areas of to.pdf
1 The patient a 12yearold boy shows several areas of to.pdf
 
1 The Port of Prince Rupert is BCs second largest port an.pdf
1 The Port of Prince Rupert is BCs second largest port an.pdf1 The Port of Prince Rupert is BCs second largest port an.pdf
1 The Port of Prince Rupert is BCs second largest port an.pdf
 
1 The paternal age appears to play an important role on the.pdf
1 The paternal age appears to play an important role on the.pdf1 The paternal age appears to play an important role on the.pdf
1 The paternal age appears to play an important role on the.pdf
 
1 The meteorological Department has issued a statement ment.pdf
1 The meteorological Department has issued a statement ment.pdf1 The meteorological Department has issued a statement ment.pdf
1 The meteorological Department has issued a statement ment.pdf
 
1 The idea underlying _____ is that satisfaction results fr.pdf
1 The idea underlying _____ is that satisfaction results fr.pdf1 The idea underlying _____ is that satisfaction results fr.pdf
1 The idea underlying _____ is that satisfaction results fr.pdf
 
1 The GI tract from esophagus to anus is composed of four t.pdf
1 The GI tract from esophagus to anus is composed of four t.pdf1 The GI tract from esophagus to anus is composed of four t.pdf
1 The GI tract from esophagus to anus is composed of four t.pdf
 
1 The Great Wars In a land far far away there lived a mig.pdf
1 The Great Wars In a land far far away there lived a mig.pdf1 The Great Wars In a land far far away there lived a mig.pdf
1 The Great Wars In a land far far away there lived a mig.pdf
 
1 The election tansport chain uses hilhtomgy eloctrans fro.pdf
1 The election tansport chain uses hilhtomgy eloctrans fro.pdf1 The election tansport chain uses hilhtomgy eloctrans fro.pdf
1 The election tansport chain uses hilhtomgy eloctrans fro.pdf
 
1 The demand function for 2 types of goods is known Q1Q25.pdf
1 The demand function for 2 types of goods is known Q1Q25.pdf1 The demand function for 2 types of goods is known Q1Q25.pdf
1 The demand function for 2 types of goods is known Q1Q25.pdf
 
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
1 Testereyi bileyin Kendini lmne altrma yilemeniz ye.pdf
 
1 The COVID19 pandemic represents one of the biggest chall.pdf
1 The COVID19 pandemic represents one of the biggest chall.pdf1 The COVID19 pandemic represents one of the biggest chall.pdf
1 The COVID19 pandemic represents one of the biggest chall.pdf
 
1 The cell cycle Mitosis At the beginning of mitosis the.pdf
1 The cell cycle  Mitosis At the beginning of mitosis the.pdf1 The cell cycle  Mitosis At the beginning of mitosis the.pdf
1 The cell cycle Mitosis At the beginning of mitosis the.pdf
 
1 The Chicago Mercantile Exchange has launched a financial .pdf
1 The Chicago Mercantile Exchange has launched a financial .pdf1 The Chicago Mercantile Exchange has launched a financial .pdf
1 The Chicago Mercantile Exchange has launched a financial .pdf
 
1 The cells shown in the diagram below are in various stage.pdf
1 The cells shown in the diagram below are in various stage.pdf1 The cells shown in the diagram below are in various stage.pdf
1 The cells shown in the diagram below are in various stage.pdf
 
1 The bones within the middle ear are the least dense bone.pdf
1 The bones within the middle ear are the least dense bone.pdf1 The bones within the middle ear are the least dense bone.pdf
1 The bones within the middle ear are the least dense bone.pdf
 

Último

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
KarakKing
 

Último (20)

FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
 
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxHMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 

1 Touron Inc recently closed at 1180 per share The foll.pdf

  • 1. 1. Touron Inc. recently closed at $11.80 per share. The following chart lists some of the option prices for Touron Inc.: (Assume that the options are American) Assume a monthly interest rate of 1% and that the December, January, and Mareh contracts have 2,3 and 5 months to expiration, respectively. a) Find the intrinsic value of the Dee 10 call. b) Find the time value of the Dee 10 call. c) Find the minimum value of the Dee 10 call. d) Find the maximum price that the March 10 call can sell for. c) Find the maximum price that the March 15 put can sell for f) Find the intrinsic value of the of the Dee 10 put. g) Find the time value of the Dec 15 put. h) Find one option that is overpriced, (There may be several). Why it is overpriced. Explain. i) Find one option that is underpriced, (There may be several). Why it is underpriced. Explain. j) Find the lower bound of the Jan 10 call. k) If the Jan 10 call was selling for $1.30, how would you take advantage of this price?