Knowee
Questions
Features
Study Tools

Calculate the value of a long call if the exercise price is $160.4, the premium is $80.2 and the spot price is $186.0.Question 4Answera.105.80b.-80.20c.-54.60d.-240.60e.-160.40

Question

Calculate the value of a long call if the exercise price is 160.4,thepremiumis160.4, the premium is 80.2 and the spot price is $186.0.Question 4Answera.105.80b.-80.20c.-54.60d.-240.60e.-160.40

🧐 Not the exact question you are looking for?Go ask a question

Solution

The value of a long call option can be calculated using the formula:

Value of Long Call = Spot Price - Exercise Price - Premium

Given: Exercise Price = 160.4Premium=160.4 Premium = 80.2 Spot Price = $186.0

Substitute these values into the formula:

Value of Long Call = 186.0186.0 - 160.4 - 80.2=80.2 = -54.6

So, the value of the long call is -$54.6. Therefore, the correct answer is c. -54.60.

Similar Questions

Calculate the value of a short put if the exercise price is $61.0, the premium is $96.8 and the spot price is $177.2.Question 3Answera.-19.40b.-116.20c.213.00d.96.80e.157.80

Calculate the value of a short call if the strike price is $10.00, the premium is $1.50 and the spot price is $8.00.

You are long 1200 call options on the IVX stock with an exercise price of $50. You paid $0.045 per option. If the price of IVX stock at maturity is $52.5, what is the profit on your position? a) –$54 b) $540 c) $54 d) –$540

An investor purchases a put option for a put premium of $4, with an exercise price of $30. The stock is currently priced at $29, and rises to $32 on the expiration date. What is the profit per unit to the investor on the expiration date?Select one:a. -$4b. $2c. -$2d. $4

An investor purchased a call option with an exercise price of $31 for a call premium of $4. The option was exercised a few days later when the stock price was $34. What was the return to the investor?Select one:a. $1b. -$1c. -$4d. $4

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.