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Alle Oberthemen / Finance & Investment / Derivatives / Derivatives
159
18.Consider a put option and a call option with the same strike price and time to maturity. Which of the following is true?
A.It is possible for both options to be in the money
B.It is possible for both options to be out of the money
C.One of the options must be in the money
D.One of the options must be either in the money or at the money

Answer: D

If the stock price is greater than the strike price the call is in the money and the put is out of the money. If the stock price is less than the strike price the call is out of the money and the put is in the money. If the stock price is equal to the strike price both options are at the money.
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victorpatrick (31.10.2023)
Question about profit calculation. I was confused as to why I was making gains on my call options that were significantly less than the breakeven point before you mentioned that this is calculated http://tunnel-rush.co/ for expiration.
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dorisrosenbaum19@gmail.com (10.07.2023)
Profit calculation question. Before you stated that this is computed for expiration, I was perplexed as to why I had profits on my call options that were much below the breakeven point.
Is it possible to estimate projected option contract prices prior to expiration while also accounting for extrinsic value?
Or is determining extrinsic worth essentially impossible?
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salmawisoky (18.04.2023)
Both options have the same strike price and the same maturity date. What does the put-call parity imply about the price of these two options? http://drift-boss.pro
bonusepisode (11.04.2023)
The call option is "out of the money" and the put option is "in the money" if and only if the current stock price is lower than the strike price. Both options will be "at the money" if and only if the stock price reaches the strike price.http://phrazle.co
Karteninfo:
Autor: CoboCards-User
Oberthema: Finance & Investment
Thema: Derivatives
Veröffentlicht: 27.10.2015

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