Essay
You buy 1,000 shares of Sunbeam at 11 1/8 and write 10 calls at a premium of 4 3/8 with a strike price of 7 1/2. The stock goes to 20 in 6 months. You receive a 8 cent dividend per share. If the calls are exercised (which is the likely assumption), what is your percentage return?
Correct Answer:
Verified
Dividends received = .08 x 1,...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
Dividends received = .08 x 1,...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q1: One important reason for the existence of
Q9: A stock investor wants to hedge the
Q14: Stock market index options are available on
Q28: How can the owner of a large
Q34: -------- <span class="ql-formula" data-value="\text { Call
Q34: What is meant by portfolio insurance?
Q55: The standard option contract is for:<br>A) 10
Q56: <span class="ql-formula" data-value="---- \text {Call} ---"><span class="katex"><span
Q64: Use the Black-Scholes model to calculate the
Q64: How could an investor create 100 shares