Suppose you purchase twelve call contracts on Macron Technology stock.

The strike
price is $70, and the premium is $2.90. If, at expiration, the stock is selling for $73 per
share, what are your call options worth? What is your net profit?

‫المعطيات‬
you purchase 12 ‫); الحظ هذا الرقم مكتوب بالكلمات في السؤال‬
Strike price 70
premium 2.9
selling for (exp.) 73

Value of call options 3600

Net profit 120
Suppose you purchase twelve put contracts on Testaburger Co. The strike price is $40
and the premium is $2.60. If, at expiration, the stock is selling for $33 per share, what
are your put options worth? What is your net profit?

you purchase 12 put contracts

strike price 40
premium 2.6
selling for 33

Value of put options 8400

Net profit 5280
Stock in Cheezy-Poofs Manufacturing is currently priced at $50 per share. A call option with a $50
strike and 90 days to maturity is quoted at $1.95. Compare the percentage gains and losses from a
$97,500 investment in the stock versus the option in 90 days for stock prices of $40, $50, and $60.

currently priced at 50
call option strike 50
days to maturity 90
quoted at 1.95
investment in stock 97500
ANSWER
Options % gain/loss Stock % gain/loss
40 100 Loss 20 Loss
50 100 Loss 0 None
60 412.82 Gain 20 Gain
Strike Calls Puts
Expira
Close Price Vol. Last Vol. Last
tion
Hendre
eks
103 100 Feb 72 5.2 50 2.4
103 100 Mar 41 8.4 29 4.9
103 100 Apr 16 10.68 10 6.6
103 100 Jul 8 14.3 2 10.1

Suppose you buy 40 Jul 100 call option contracts. How much will you pay, ignoring commissions?

‫ال تنسين تغير الشهر من القائمة‬ ‫ ركزوا كويس بالمعطيات والمطلوب عشان ما تحلون السؤال بشيت غلط ألنهم متشابهين‬v_v
you buy 40 Jul ‫عبوا االثنين الشهر والعدد‬

Cost of contracts 57200

‫‪ v_v‬ركزوا كويس بالمعط‬

‫‪14.3‬‬
 Strike Calls Puts
Expira
Close Price Vol. Last Vol. Last
tion
Hendreeks
103 100 Feb 72 5.2 50 2.4
103 100 Mar 41 8.4 29 4.9
103 100 Apr 16 10.68 10 6.6
103 100 Jul 8 14.3 2 10.1

Suppose you buy 50 March 100 call option contracts. Hendreeks stock is selling for $106.70 per share on the
expiration date. How much is your options investment worth? What if the stock price is $102.60 on the
expiration date?

you buy 50 ‫معطيات‬

Stock Price 1 106.7 ‫من‬
Stock Price 2 102.6 ‫السؤال‬

Terminal value at 33,500

Terminal value at 13,000
Strike Calls Puts
Expira
Close Price Vol. Last Vol. Last
tion
Hendre
eks
103 100 Feb 72 5.2 50 2.4
103 100 Mar 41 8.4 29 4.9
103 100 Apr 16 10.68 10 6.6
103 100 Jul 8 14.3 2 10.1

Suppose you buy 60 March 100 put option contracts. What is your maximum gain?
On the expiration date, Hendreeks is selling for $85.50 per share. How much is your
options investment worth? What is your net gain?

‫اكتب المعطيات في المربعات المظللة باألخضر وغير الشهر‬

you buy 60 Mar
selling for (on exp.) 86.55 )7-15( ‫الفرق بينه وبين اللي بعده‬
you buy put option
Maximum gain 570600
Terminal value 80700
Net gain 51300
29400
4.9
Strike Calls Puts
Expira
Close Price Vol. Last Vol. Last
tion
Hendre
eks
103 100 Feb 72 5.2 50 2.4
103 100 Mar 41 8.4 29 4.9
103 100 Apr 16 10.68 10 6.6
103 100 Jul 8 14.3 2 10.1

‫اكتب المعطيات في المربعات المظللة باالخضر وغير الشهر من القائمة‬ )6-15( ‫الفرق بينه وبين اللي قبله‬
you write 30 Mar you write (sell) put option
selling for (on exp.) 98 110 ‫ فيه سعرين‬$_$

a. Suppose you write 80 of the Feb 100 put contracts. What is your net gain or loss if
Hendreeks is selling for $98.00 at expiration? For $112?
$1 at expiration net gain 8700
$2 at expiration net gain 14700
b. What is the break-even price, that is, the terminal stock price that results
in a zero profit?
Break-even price 95.10
‫الفرق بينه وبين اللي قبله‬
‫‪ite (sell) put option‬‬ ‫‪14700‬‬
A call option is currently selling for $3.40. It has a strike price of $60 and seven
months to maturity. What is the price of a put option with a $60 strike price and
seven months to maturity? The current stock price is $61, and the risk-free
interest rate is 6 percent.

currently selling 3.4

Strike price 60 ‫هنا طالب الـ‬put price
mnths maturity 7 ‫مكتوب ككلمة‬
stock price 61
risk-free 6%

Put price 0.39

A call option currently sells for $7.50. It has a strike price of $70 and four months to
maturity. A put with the same strike and expiration date sells for $5.75. If the risk-
free interest rate is 6.1 percent, what is the current stock price?

Call sells for 7.5 ‫مشابه لألسئلة اللي بعده لكن هذا ما فيه ديفيدندز‬
strike price 70 ‫) ان مافيه‬12-15( ‫ يفرق عن‬dividends
months to maturity 4 ‫مكتوب ككلمة‬
Put sells for 5.75
risk-free rate 6.10%

Current stock price 70.38

A put option with a strike price of $25 sells for $4.30. The option expires in three months and the
current stock price is $28.00. If the risk-free interest rate is 4.1 percent, what is the price of a call
option with the same strike price?

strike price 25
sells for 4.30 ‫ هذا السؤال شبه األسئلة اللي بعده تقريبا بكل شي ما عدا إنه هذا ما فيه ديفيدندز‬:‫مالحظة‬
expires in 3 months ‫ هنا طالب‬price of a call option
stock price 28
interest rate 4.10%

Price of a call option 7.55

A call option is currently selling for $5.60. It has a strike price of $120 and four months
to maturity. The current stock price is $122 and the risk-free rate is 3.1 percent. The
stock will pay a dividend of $2.25 in two months. What is the price of a put option with
the same exercise price?

selling for 5.60 ‫ هنا طالب‬price of a put option

strike price 120
months to maturity 4 ‫مكتوب ككلمة‬
stock price 122
risk-free rate 3.10%
dividend 2.25
pay it in 2 months

div 2.24
Price of a put option 4.62
A call option is currently selling for $6.50. It has a strike price of $75 and seven months to
maturity. A put option with the same strike price sells for $7.90. The risk-free rate is 4.4 percent
and the stock will pay a dividend of $3.10 in three months. What is the current stock price?

‫) في إنه هذا‬13-15( ‫ يفرق عن اللي بعده‬call option

Call sells for 6.5 ‫) ان هذا فيه‬9-15( ‫ يفرق عن‬dividends
strike price 75
months to mature 7 ‫مكتوب ككلمة‬
Put sells for 7.90
risk-free rate 4.4%
dividend 3.1
pay in 3 months

div 3.07
Current stock price 74.81
A put option is currently selling for $7.50. It has a strike price of $85 and seven months to
maturity. The current stock price is $88. The risk-free rate is 6.0 percent and the stock will pay a
$2.90 dividend in two months. What is the price of a call option with the same strike price?

selling for 7.5 ‫) في إنه هذا‬12-15( ‫ يفرق عن اللي قبله‬put option

strike price 85
months to maturity 7 ‫مكتوب ككلمة‬
stock price 88
risk-free rate 6.00%
dividend 2.9
pay it in 2 months

div 2.87
Price of a call option 10.47
Suppose you write 36 call option contracts with a $80 strike. The
premium is $4.33. Evaluate your potential gains and losses at option
expiration for stock prices of $70, $80, and $90.

‫المعطيات‬
you write 10 call option contrcats
with a 40 strike
premium 2.56 )15-15( ‫الفرق بينه وبين اللي بعده‬
ANSWER ‫ ان هذا‬call option
At stock price of 30 gain is 2560
At stock price of 40 gain is 2560
At stock price of 50 loss is 7440
2560
Suppose you write 40 put option contracts with a $40 strike. The 9600
premium is $2.40. Evaluate your potential gains and losses at option
expiration for stock prices of $30, $40, and $50.

‫المعطيات‬
you write 40 put option contrcats
with a 40 strike
premium 2.4 )14-15( ‫الفرق بينه وبين اللي قبله‬
ANSWER ‫ ان هذا‬put option
At stock price of 30 loss is 30400
At stock price of 40 gain is 9600
At stock price of 50 gain is 9600
16. Index Options (LO2, CFA1) Suppose you buy one SPX call option
contract with a strike of 2200. At maturity, the S&P 500
Index is at 2218. What is your net gain or loss if the premium you paid was
$14?
‫المعطيات‬
Strike of 1300
Index is at 1328
Premium 22
ANSWER
Gain 600
You write a put with a strike price of $75 on stock that you have shorted at $75 (this is a “covered
put”). What are the expiration date profits to this position for stock prices of $65, $70, $75, $80, and
$85 if the put premium is $2.80?

Strike price 75 ‫باقي المعطيات ما نحتاجها‬

Put premium 2.8 ANSWER
Stock price Short profit Put payoff Put profit Net profit
65 10.00 -10.00 -7.20 2.80 )18-15( ‫الفرق بينه وبين اللي بعده‬
70 5.00 -5.00 -2.20 2.80 ‫هنا قال‬: you write a put
75 0.00 0.00 2.80 2.80
80 -5.00 0.00 2.80 -2.20
85 -10.00 0.00 2.80 -7.20
You buy a call with a strike price of $65 on stock that you have shorted at $65 (this is a
“protective call”). What are the expiration date profits to this position for stock prices
of $55, $60, $65, $70, and $75 if the call premium is $4.20?

‫المعطيات‬
Strike price 65
‫باقي المعطيات ما نحتاجها‬
call premium 4.2
ANSWER )17-15( ‫الفرق بينه وبين اللي قبله‬
Stock price Short profit Call payoff Call profit Net profit ‫هنا قال‬: you buy a call
55 10 0 -4.20 5.80
60 5 0 -4.20 0.80
65 0 0 -4.20 -4.20
70 -5 5 0.80 -4.20
75 -10 10 5.80 -4.20
You simultaneously write a covered put and buy a protective call, both with strike
prices of $55, on stock that you have shorted at $55. What are the expiration date
payoffs to this position for stock prices of $45, $50, $55, $60, and $65?

Strike Prices 55 ‫بس اكتب السترايك برايس‬

ANSWER
Stock price Short Profit Put payoff Call payoff Total payoff
45 10 -10 0 0 )20-15( ‫الفرق بينه وبينه اللي بعده‬
50 5 -5 0 0 ‫هنا قال‬: "on stock you have shorted"
55 0 0 0 0 ‫هناك ما قال‬
60 -5 0 5 0
65 -10 0 10 0
‫الفرق بينه وبينه الل‬
‫"‪you have shorted‬‬
‫هناك م‬
You simultaneously write a put and buy a call, both with strike prices of $50, naked, i.e., without any
position in the underlying stock. What are the expiration date payoffs to this position for stock prices
of $40, $45, $50, $55, and $60?

‫المعطيات‬
Strike Prices 50 ‫بس اكتب السترايك برايس‬
ANSWER
Stock price Put payoff Call payoff Total payoff
40 -10 0 -10
45 -5 0 -5
50 0 0 0
55 0 5 5
60 0 10 10
You buy a straddle, which means you purchase a put and a call with the same strike price.
The put price is $2.30 and the call price is $4.10. Assume the strike price is $60.

Put Price 2.30

Call Price 4.10 ‫المعطيات‬
Strike Price 60.00
a. What are the expiration date payoffs to this position for stock prices of $50, $55, $60, $65, and $70?
What are the expiration date profits for these same stock prices?
Stock price Call payoff Put payoff Total payoff Total profit
50 0 10 10 3.60
55 0 5 5 -1.40 ‫ جواب‬A
ANSWER
60 0 0 0 -6.40
65 5 0 5 -1.40
70 10 0 10 3.60
b. What are the break-even stock prices?
High Low
Break-even prices 66.40 53.60 ‫ جواب‬B
Suppose you buy one SPX call option with a strike of 2145 and write one SPX call option with a strike of 2150.
What are the payoffs at maturity to this position for S&P 500 Index levels of 2050, 2100, 2150, 2200, and 2250?

Strike "BUY" 2145

‫المعطيات‬
Strike "WRITE" 2150 )23-10( ‫يفرق عن اللي بعده‬
Index level Long call payoff Short call payoff Total payoff ‫هذا السؤال‬: buy call, write call
2050 0 0 0
2100 0 0 0
ANSWER
2150 5 0 5
2200 55 -50 5
2250 105 -100 5
h a strike of 2150.
0, 2200, and 2250?

0( ‫يفرق عن اللي بعده‬

‫ه‬: buy call, write call
Suppose you buy one SPX put option with a strike of 2080 and write one SPX put option with a strike of 2135.
What are the payoffs at maturity to this position for S&P 500 Index levels of 2000, 2050, 2100, 2150, and 2200?

Strike "BUY" 2080 )22-15( ‫) واللي قبله‬24-15( ‫يفرق عن اللي بعده‬

Strike "WRITE" 2135 ‫هذا السؤال‬: buy put, write put
Index level Long put payoff Short put payoff Total payoff
2000 80 -135 -55
2050 30 -85 -55
ANSWER
2100 0 -35 -35
2150 0 0 0
2200 0 0 0
 a strike of 2135.
0, 2150, and 2200?

‫) واللي قبله‬24-15( ‫يفرق عن اللي بعده‬

‫ه‬: buy put, write put
Suppose you buy one SPX call option with a strike of 2070 and write one SPX put option with a strike of
2070. What are the payoffs at maturity to this position for S&P 500 Index levels of 2000, 2050, 2100,
2150, and 2200?

‫بس اكتب السترايك برايس‬ ‫) إنه هذا كول أوبشن‬23-15( ‫الفرق بينه وبين اللي قبله‬
Strike 2060 ‫) إنه هذا يشتري كول أوبشن لكن بييع بوت أوبشن‬25-15( ‫يفرق عن اللي بعده كمان‬

Index level Long call payoff Short put payoff Total payoff )25-15( ‫) واللي بعده‬23-15( ‫يفرق عن اللي قبله‬
2000 0 -60 -60 ‫هذا السؤال‬: buy call, write put
2050 0 -10 -10
ANSWER
2100 40 0 40
2150 90 0 90
2200 140 0 140
‫الفرق بينه وبين اللي قبله (‪)23-15‬‬
‫‪Alaa‬‬
‫يفرق عن اللي بعده كمان (‪ )25-15‬إنه‬

‫يفرق عن اللي قبله (‪ )23-15‬واللي بعده‬

‫‪: buy call, write put‬ه‬
Suppose you buy one each SPX call option with strikes of 2005 and 2365 and write two SPX call options
with a strike of 2115. What are the payoffs at maturity to this position for S&P 500 Index levels of 1900,
1950, 2000, 2050, 2100, 2150, and 2200?

Strike "BUY" 1&2 2005 2365 ‫) إنه هذا يشتري كول أوبشن ويبيع كول أوبشن‬24-15( ‫اللي قبله‬
Strike "WRITE" 2115 ‫ الحظ هذا السؤال الكول أوبشن له اثنين‬st
ANSWER
Index level Long call payoff Long call payoff Short call (2) Total payoff
STRIKE1 STRIKE2 payoff
1900 0 0 0 0 ‫) بانه‬24-15( ‫يفرق عن اللي قبله‬:
1950 0 0 0 0 ‫هذا السؤال‬: buy call, write call
2000 0 0 0 0 ‫ انه له سعرين‬22-15 ‫ فرقه عن‬strike
2050 45 0 0 45
2100 95 0 0 95
2150 145 0 -70 75
2200 195 0 -170 25
‫يفرق عن اللي قبله (‪ )24-15‬إنه هذا يشتري‬
‫‪ strike‬الحظ هذا السؤال الكول أوبشن‬

‫‪:‬يفرق عن اللي قبله (‪-15‬‬

‫‪: buy call, write call‬ه‬
‫‪ strike‬فرقه عن ‪ 22-15‬ان‬