Archive for December, 2009
the_gold3n_child asked:
The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56.
Tiffanie Lamoree
The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56.
Tiffanie Lamoree
Kevin asked:
There’s a test in my Finance class tomorrow and guess who discovered he had the wrong book!
There’s a test in my Finance class tomorrow and guess who discovered he had the wrong book!
Anyway, I went to investopedia and cruised through the book I DO have and couldn’t find how to calculate the Stock Market Return OR how to find the profit per share from exercising a stock option.
I assume the exercised option is just the current price minus the option price, but I have no clue about the SMR.
Thanks!
Buster Kucera
westphalia1 asked:
I have 6 weeks left till my stock option expires. It is an ishares canadian index option. It flirted with the strike price this afternoon and the last 4 days I know time value is important but with only 6 weeks to go if my option exceeds the strike price (depending on how far) will i still profit because of the increase?
Maya
I have 6 weeks left till my stock option expires. It is an ishares canadian index option. It flirted with the strike price this afternoon and the last 4 days I know time value is important but with only 6 weeks to go if my option exceeds the strike price (depending on how far) will i still profit because of the increase?
Maya
Joe B asked:
This is class A common stock owned by the employees of Amstead for purposes of retirement. I am 74 years old and have drawn one fifth of my stock for 2006.
Rudolf Camberos
This is class A common stock owned by the employees of Amstead for purposes of retirement. I am 74 years old and have drawn one fifth of my stock for 2006.
Rudolf Camberos
Joe asked:
Say I buy a put option on a stock at $20. Say the stock drops to $10, goes back up to $15, then back down to $10. Without considering the loss of time value (say if there is plenty of time left before expiration), will the value of the put option be the same, more, or less the second time it reaches $10, vs. the first time? If I remember correctly, the value in this case may be affected by implied volatility?
Jewel Sweatmon
Say I buy a put option on a stock at $20. Say the stock drops to $10, goes back up to $15, then back down to $10. Without considering the loss of time value (say if there is plenty of time left before expiration), will the value of the put option be the same, more, or less the second time it reaches $10, vs. the first time? If I remember correctly, the value in this case may be affected by implied volatility?
Jewel Sweatmon
damarcuswilson asked:
Options are more affordable for me. Is it the same as researching a stock for a company by looking what the company sells, market cap, institutional owners, and stock price history? Should I stick with IPO’s or brand companys?
Theo Santarelli
Options are more affordable for me. Is it the same as researching a stock for a company by looking what the company sells, market cap, institutional owners, and stock price history? Should I stick with IPO’s or brand companys?
Theo Santarelli
Gary from So Cal asked:
Examples:
1) If buy an option to open then sell to close at a loss?
2) If i buy an option but the stock price never hits the strike price and expires useless can i write off what i paid for the premium?
Nathanial Slim
Examples:
1) If buy an option to open then sell to close at a loss?
2) If i buy an option but the stock price never hits the strike price and expires useless can i write off what i paid for the premium?
Nathanial Slim
Jackie asked:
than the stock quote and then excerise the option contract and sell that stock at the higher market quote price? Is there a catch some where? Can I buy .GECY@$6.80 w/ strike price $27.500 exercise the call option buy and sell GE@$34.21. Thanks
Ceola Jove
than the stock quote and then excerise the option contract and sell that stock at the higher market quote price? Is there a catch some where? Can I buy .GECY@$6.80 w/ strike price $27.500 exercise the call option buy and sell GE@$34.21. Thanks
Ceola Jove
harish k asked:
I had 1000 stock options granted by my co. for $15 in 2001. I exercised my right by using the sell to cover option in 2004 when the price was $22. The stock tanked after that and has recovered back to $22 today. I want to sell the stock now but am curious as to what amount will I be taxed or do I report no gain/no loss for the transaction.
Sergio Kuamoo
I had 1000 stock options granted by my co. for $15 in 2001. I exercised my right by using the sell to cover option in 2004 when the price was $22. The stock tanked after that and has recovered back to $22 today. I want to sell the stock now but am curious as to what amount will I be taxed or do I report no gain/no loss for the transaction.
Sergio Kuamoo
capgirl732 asked:
I’d like to make some good investments this year, stocks being a primary choice. I know a lot of spam or bulk mail should NOT be trusted, but is it possible one of these messages might be on to the next “Google” or “MySpace”? And what’s the best way to find out?
Rosamaria Byon
I’d like to make some good investments this year, stocks being a primary choice. I know a lot of spam or bulk mail should NOT be trusted, but is it possible one of these messages might be on to the next “Google” or “MySpace”? And what’s the best way to find out?
Rosamaria Byon