skip to Main Content

Stop worrying about assignment deadlines, let us help with this paper!

Smart students don’t copy paste information from all over the web hoping to get a good grade! Watch the video below to learn what they do:

Help with the questions below:
Question 1

There are two calls on the same stock. Both expire in 6 months and are identical in every way except the exercise price. If Call A has an exercise price of $40 and Call B has an exercise price of $50, which call will have a higher price?

A. Call A
B. Call B
C. Cannot be determined

Question 2

If the present value of the exercise price is $20, the call option is selling for $5, and the market price of the stock is $22. If the put is selling for $5, should you buy it? Why or why not?

A. Yes, you will make $2
B. No, you will lose $3
C. No, you will lose $2
D. Yes, you will make $3

Question 3

Suppose you have written both a put and a call on the same stock with the same exercise price and the same expiration date (so you are short both options). You are best off if the stock price on the expiration date is

A. Below the exercise price
B. Equal to the exercise price
C. Above the exercise price

Question 4

A decrease in ____ will decrease the price of both a call and a put on the same stock

A. Stock price
B. Exercise price
C. Volatility
D. Dividends

Question 5

Which of the following is an example of a real option?

A. Foothold in an expanding market
B. End a project early
C. Wait for better market conditions
D. All of these are real options

Question 6

You buy 27 call contracts with an exercise price of $80.  The current price of the stock is $81.  The ask price is $1.33 per contract. What is the cost of the option?

Question 7

The minimum option value

A. speculative value
B. intrinsic value
C. option price

Question 8 Risk-neutral valuation is one way to estimate the value of the option before maturity



Question 9

If you are long the option, then you can choose whether to exercise or not.



Question 10

A put has an exercise price of $12 and 9 months to maturity. The stock price is $10. Find the intrinsic value. If the option price is $2.75, what is the speculative value?

A. Intrinsic = 2; speculative = .75
B. Intrinsic = 2; speculative = 2.75
C. Intrinsic = 0; speculative = 2.75
D. Intrinsic = 0; speculative = .75



Once you place a custom order, our experts will start working on your paper in as little as 5 minutes. What’s more, we’ve never missed a single deadline! You never have to waste your precious time copying and pasting information from all over the web in order to write a paper ever again!


As a student, you can’t afford to spend a whole lot of money to get your paper written by a pro. With us, you don’t have to! We offer custom papers from as little as $13.99 per page! Additionally, if you have an exceptionally large order, we offer 20% discount.


Researching, sourcing, and writing each of our academic papers is done by a team of professional tutors according to your exact specifications. This long process provides you with absolute assurance that the work which you purchase from us has not been plagiarized.


We take your privacy very seriously. In this spirit, we retain absolutely no personal information regarding you once your project has been completed. Moreover, no customer payment information is available on our end since we use Paypal as our third-party payment processor.